Diversified Sri Lankan conglomerate Sunshine Holdings recorded resilient revenue and profit growth in a pandemic-affected macroeconomic environment, reporting notable top-line and bottom-line performance growth during the year ended March 31, 2021 (FY20/21). The Group’s Healthcare and Consumer sectors led growth while the healthcare segment remained the major contributor to total Group revenue in FY21.
Sunshine recorded a consolidated Group revenue of Rs. 24.3 billion for the year ended March 31, 2021, an increase of 16.6% over last year. Profit after tax (PAT) also increased to Rs. 2.5 billion, an increase of 38.5% YoY, and profit margins have also increased to 10.4% compared to last year’s 8.8%.
These improved results stem from revenue growth, margin increases in key sectors and strategic measures taken by the group to rationalise operating cost and lower finance expenses.
The Group’s Healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53% of the total, while Consumer Goods and Agri Business sectors of the group contributed 29% and 16% respectively of the total Group revenue. The gross profit closed at Rs. 7.7 billion up 25.2% YoY compared to the previous year, backed by the contribution from the Consumer goods and Agribusiness sectors. The Group EBIT closed at Rs. 3.5 billion, an increase of 21.2% YoY.
Profit after Tax and Minority Interest (PATMI) increased by 32.7% YoY to Rs1.5 billion; the Healthcare sector made the largest contribution to PATMI, accounting for 37% of the total while Agribusiness accounted for 30% of the total. Net Asset Value per share increased to Rs. 23.48 as at end March 2021, compared to Rs. 18.75 at the end March 2020.
For increasing exposure to itscore sectors, which are defensive in nature, and maintaining a healthy balance sheet, Sunshine Group’s Fitch rating was upwardly revised to ‘AA+(lka)’; Outlook Stable, from ‘A(lka)’ in January 2021 (reaffirmed in March 2021).
Sunshine Holdings Group Managing Director Vish Govindsamy said as a group, Sunshine has been facing challenges in some of their core sectors and will continue to do so in the short to medium term due to the negative economic impact due to the Covid-19 pandemic and subsequent lockdowns.
The Group’s Healthcare sector grew its revenue by 14.5% YoY to Rs. 12.8 billion. The sector achieved growth in Pharma, Medical Devices and Retail sub sectors with significant improvement in the second half of the year owing to the recovery from Covid-19 lockdown.
Revenue for the Renewable Energy division amounted to Rs. 440million in FY21, up 40.8% YoY from Rs. 313 million during FY20 as a result of favorable weather conditions in the Hydro segment and the expansion of the rooftop solar projects. In April 2021, the Group divested its stake in the Mini Hydro Power business, under Waltrim Hydropower (Pvt) Ltd to Aitken Spence PLC with the aim of re-focusing on its core sectors.