Diversified conglomerate Sunshine Holdings PLC continued to demonstrate resilience amidst prevailing macro-economic conditions, reporting solid top-line and bottom-line growth of 13
Chairman Amal Cabraal |
percent and 15.4 percent year-on-year (YoY).
The Group recorded a consolidated revenue of Rs.28.2 billion during the first half of the current financial year (1H24) with profit after tax (PAT) increased to Rs.3.6 billion as a result of lower finance costs during the period.
The revenue increase was mainly due to robust revenue growth in key sectors of the Group —healthcare, consumer and agribusiness.
The Group’s healthcare sector emerged as the largest contributor to its top-line, accounting for 49.2% of total revenue, with consumer at 34.4 percent and agribusiness 16.3 percent of the total revenue.
Commenting on the performance, Sunshine Holdings PLC Chairman Amal Cabraal said Lina Manufacturing acquired through a strategic merger with Akbar Pharmaceuticals in 2020, played a pivotal role in boosting the Group’s overall performance during the first half.
During the period in review, Group’s healthcare sector posted revenue of Rs.13.8 billion in the first half, a significant increase of 19.2 percent YoY backed by the increased top-line of all business units under the sector.
Pharma segment revenue grew by 4.1 percent YoY and the medical devices segment grew by 51.0 percent YoY driven by both price and volume increase. Revenue of the retail segment saw 17.6 percent YoY increase, fueled by an improved footfall of 14 percent compared to the previous year.
Lina Manufacturing, the pharma manufacturing business of the Group, recorded an impressive revenue growth of 203.5 percent YoY, mainly driven by higher volumes in the Metered Dose Inhaler (MDI) plant. Group’s Healthcare sector EBIT was Rs.2.1billion.
The consumer sector, which includes both export and domestic business, reported 13.2 percent YoY increase in revenue to close at Rs. 9.7 billion in 1HFY24. Consumer local business showcased strong performance in 1HFY24 with Group’s consumer brands continuing to grow market shares.
Combined tea category experienced a volume growth of 11.5 percent YoY and a value growth of 84.4 percent YoY. The confectionery segment revenue declined by 13.8 percent YoY, despite an increase in price, due to a volume contraction of 26.8 percent YoY. PAT from the consumer segment increased by 32.5 percent YoY due to the growth in local business.
The agribusiness sector of the Group, represented by Watawala Plantations PLC, reported revenue of Rs. 4.6 billion, up by 0.4 percent YoY. The revenue growth was driven by the increase in palm oil volumes despite the dip in prices in line with the drop in global commodity prices. The PAT of the Agri sector closed at Rs.1.7 billion for 1HFY24, down by 15 percent YoY. Dairy business revenue grew by 37.8 percent YoY due to increases in both sales volume and milk price.
