Sunshine Holdings posts 44% growth in 1H | Sunday Observer

Sunshine Holdings posts 44% growth in 1H

28 November, 2021
Chairman Amal Cabraal 
Chairman Amal Cabraal 

Recording another quarter of impressive financial performance in a challenging economic backdrop, diversified conglomerate Sunshine Holdings PLC posted consolidated revenue of Rs. 15.8 billion for the six months ending September 30, 2021, an increase of 44% YoY compared to the corresponding period of last year.

Profit after tax (PAT) rose to Rs. 2.5 billion, an increase of 91% YoY, on the back of improved performance in Healthcare and Agribusiness sectors. The gross profit improved by Rs. 1.6 billion, up 44% YoY compared to the corresponding period last year, in line with the Group’s revenue growth. Gross profit margin for the period in review stood at 34%, which is a marginal decrease against the same period last year. Profits attributable to equity shareholders (PATMI) closed at Rs. 1,209 million for 1HFY22.

The Group’s Healthcare business emerged as the largest contributor to its top-line performance, accounting for 54% of total revenue. In comparison, Consumer and Agribusiness sectors of the group contributed 24% and 22% respectively of the total revenue.

Sunshine Holdings PLC Chairman Amal Cabraal 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 pandemic-related macroeconomic challenges.

The Group’s Healthcare sector generated Rs. 8.5 billion revenues during 1HFY22, representing a significant growth of 48% YoY on the back of improved performance in Pharmaceuticals Distribution, Manufacturing, Medical Devices and Healthguard Pharmacy. The Healthcare sector PAT increased by 20% YoY. Sunshine Healthcare was also recognised as a Top 40 employer by the Great Place to Work Institute during the quarter.

The Consumer Brands sector recorded a revenue of Rs. 3.8 billion, a 35% increase. The sector’s tea brands; Watawala Thei, Zesta and Ran Kahata continue to be market leaders. The revenue increase is mainly driven by the addition of the confectionary business segment via the acquisition of Daintee Ltd. The PAT of the sector decreased by Rs. 19 million (-15% YoY) to Rs. 109 million in comparison to the same period last year.

The Agribusiness sector, represented by Watawala Plantations PLC (WATA) and Watawala Dairy Limited, saw a revenue increase of 60% YoY to Rs. 3.4 billion.