Diversified Sri Lankan conglomerate Sunshine Holdings reported top-line performance growth of 6.9% YoY to stand at Rs.22.6 billion during the year ended 31 March 2019.
Profit after tax (PAT) for the period in review declined to Rs. 1.1 billion and profit margins have also reduced to 5.1% compared to last year’s 8.5%, mainly due to lower profitability in the agribusiness sector.
The group’s Healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 40% of total revenue, while Agribusiness and Consumer Goods sectors of the group contributed 31% and 25% respectively of the total revenue.
Profit after Tax and Minority Interest (PATMI) decreased by 16.7% YoY to Rs. 553 million; the healthcare sector made the largest contribution to PATMI, accounting for 62% of the total while consumer accounted for 46% of the total. Net Asset Value per share increased to Rs. 50.26 as at end March 2019, compared to Rs. 46.71 at the end March 2018.
Sunshine Holdings Group Managing Director, Vish Govindasamy said; “during the year in review, we have continued to display a resilient and entrepreneurial spirit in the face of such difficulties as a Group. Though our Agribusiness revenue has contracted slightly, both Healthcare and Consumer Goods have contributed immensely towards the Group revenue, continuing their strong growth momentum from last year.”
During the period in review, Group’s Healthcare sector grew its revenue by 14.1% YoY to Rs. 9.3 billion. Though the second round of drug price control—which came in to effect in September 2018—had a negative impact, the revenue growth was propelled on the back of higher sales volume, new agency acquisitions and footfall growth in its retail subsector—represented by its rapidly-growing Healthguard franchise.
The pharma sub-segment, which represents 66% of healthcare revenue, grew by 10.4% due to higher sales volumes and price increases YoY. Reported PAT for healthcare amounted to Rs.368 million in FY18/19, up 42.4% YoY at a margin of 3.9%.
“In Healthcare, we expect to increase the revenue in the first quarter of FY19/20, with price adjustments made by the NMRA on price-controlled products”.
Spearheaded by brands like ‘Zesta’, ‘Watawala Tea’ and ‘Ran Kahata’, the Consumer sector continued its impressive growth by posting revenues of Rs. 5.9 billion in FY18/19, up 8.9% YoY, on the back of both volume and price growth.
Govindsamy mentioned that the Consumer business would continue to invest behind its brands to scale their domestic business and the Group will continue to strengthen its international business operation efficiency further.
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