Sunshine Holdings PLC reported notable growth in bottom-line performances during the first nine months of the current financial year (9MFY20). During this period, the Group posted consolidated revenue of Rs. 15.8 billion, delivering a 32.3% Year-on-Year (YoY) increase in Profits After Tax (PAT).
Group’s top-line performance saw a decline in growth by 4.9% YoY, mainly due to the sale of the tea plantation business represented by Hatton Plantations PLC (CSE: HPL) during the first quarter as well as the revenue contraction of Group’s consumer goods and Energy sectors.
Group’s healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 50% of total revenue, while consumer and agribusiness sectors of the Group contributed 26% and 19% respectively of the total revenue. Profit after tax (PAT) for the period in review rose to Rs. 1.7 billion, which include a one-off gain from the sale of Hatton Plantations PLC, which amounted to Rs. 343 million. The strong results were carried through to the Group’s Profit After Tax & Minority Interest (PATMI) which grew by 46.1% YoY to Rs. 1 billion.
Commenting about the Group’s performance, Sunshine Holdings Group Managing Director, Vish Govindsamy stated, “The notable growth in our bottom line is attributable to the strong contributions from the healthcare arm.”
As the largest contributor to Group revenue, Sunshine Healthcare grew its revenue by a20.5% YoY to Rs. 8.2 billion on the back of pharma and medical devices sub-sectors.
“In Healthcare, we expect strong growth for 4QFY20, especially in the medical devices and pharma sub-divisions. We are closely monitoring the changes in the exchange rate, which is sensitive to our margins.” The Group’s agribusiness sector, led by Watawala Plantations PLC (WATA) and Hatton Plantations PLC (HPL), recorded revenue decline by 40.2% YoY to Rs. 3.1 billion due to the divestment of HPL.
Revenue of the group’s renewable energy business amounted to Rs.255 million in 1HFY20, down 18.1% YoY for 9MFY19, as a result of lower rainfall in the catchment areas coupled with plant maintenance activities.
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