Fueled by strong growth in its healthcare sector, diversified Sri Lankan conglomerate Sunshine Holdings PLC reported notable growth in bottom-line performances during the year ended March 31, 2020 (FY19/20). During this period, the Group posted consolidated revenue of Rs. 20.8 billion, delivering a 60% Year-on-Year (YoY) increase in Profits After Tax (PAT).
Group’s top-line performance saw a decline in growth by 8% YoY, mainly due to the sale of the tea plantation business represented by Hatton Plantations PLC during the first quarter as well as the revenue contraction of Group’s consumer goods sector. Group’s healthcare and consumer business together contributed 78% to Sunshine’s top-line, while agribusiness sectors of the Group contributed 18% of the total revenue.
Profit after tax (PAT) for the period in review rose to Rs. 1.8 billion, which include a one-off gain from the sale of Hatton Plantations PLC, which amounted to Rs. 341 million. The strong positive results were carried through to the Group’s Profit After Tax & Minority Interest (PATMI) which grew by 102.4% YoY to Rs. 1.1 billion. Group’s healthcare and agribusiness sectors were significant contributors to PATMI, accounting for 44% and 34% respectively.
Sunshine Holdings Group Managing Director, Vish Govindsamy stated, “The financial year under review experienced two unexpected events—the Easter bombings and the country-wide lockdown due to COVID-19 pandemic. However, we displayed a resilient and entrepreneurial spirit in the face of such difficulties.”
“Due to the divestment of Group’s tea plantation business, our agribusiness sector experienced a decline in revenue growth while Group’s consumer goods sector also saw a contraction in revenue due to market disruptions,” Govindasamy added further.
As the largest contributor to Group revenue, Sunshine Healthcare grew its revenue by 19.7% YoY to Rs. 11.2 billion on the back of both volume and price growth in the pharma and medical devices sub-sectors.
Sunshine’s Consumer brands – spearheaded by premium brands like ‘Zesta’ and ‘Watawala Tea’ – recorded revenues of Rs. 5.4 billion during the period in review, down 7% YoY. According to Govindasamy, the consumer business would continue to invest behind its brands to scale the domestic businesses.
The Group’s agribusiness sector, led by Watawala Plantations PLC (WATA), recorded revenue decline by 46.1% YoY to Rs. 3.8 billion due to the divestment of HPL.
The dairy subsector has reached a total of 810 milking cows, and the total number of animals stands at 1460.
Revenue of the Group’s renewable energy business amounted to Rs.313 million in FY20, down 12.1% YoY from Rs.356 million during FY19, as a result of lower rainfall in the catchment areas coupled with plant maintenance activities.
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