Sunshine Holdings reported consolidated revenues of Rs 14.1 bn for the nine months ended December 31, 2016 up 10.1% YoY.
Profit After Tax grew 27.7% YoY to stand at Rs 1.3 bn for 9MFY17, however Profit After Tax and Minority Interest (PATMI) declined 12.6% YoY mainly due to a reduction in the Healthcare segment profits caused by the implementation of NMRA price controls.
Healthcare continued to be the largest contributor to group revenue accounting for 41%. Agriculture was the second largest with 34% followed by FMCG at 21% of the revenue.
Profit After Tax (PAT) amounted to Rs 1,338 mn up 27.7% YoY, with PAT and Minority Interest (PATMI) coming down to 12.6% YoY to Rs 446 m due to loss in the Healthcare business... ...on account of price control, with a one-time stock loss of Rs 123m. As, a result Agriculture was the largest contributor to PATMI in 9MFY17 with LKR 245m, which represents 55% of total PATMI.
Healthcare revenue for 9MFY17 grew 10.5% YoY, led primarily by growth in the retail segment accounting for 41% of Group turnover for the period. EBIT margin for 9MFY17 contracted by 430 bps to 3.3%, mainly on account of price control imposed under the NMRA regulation leading to a one-time stock correction loss of Rs 123m.
The Pharma sub-segment which represents 66.6% of Healthcare revenuegrew at only 6% YoY,due to the impact of reduced prices. The company’s Pharma segment is the second largest player in the country, holding 12% share of country’s total market share.
The FMCG sector reported revenues of Rs 3 bn in 9MFY17, up 19.5% YoY, on the back of both volume and price growth, accounting for 21% of group revenue for the period in review. The domestic branded tea business within the Group’s FMCG segment sold 2.88 million kilos of branded tea, improving 8% YoY, driven by Sunshine Group’s largest brand ‘Watawala Tea’, and their converter brand ‘Ran Kahata’.
The Agribusiness sector represented by Watawala Plantations saw revenue growth of 2.7% YoY to Rs 4.7bn, despite a 8% YoY contraction in Tea revenue. Palm Oil sub sector reported an increase of 47% YoY for 9MFY17.
PAT for 9MFY17 amounted to LKR 1,014m, against LKR 439m in the same period last year. Growth in profits was mainly attributed to a reduction in losses in the Tea sub-sector, and a parallel increase in profits from the Palm Oil sub sector.
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