Sunshine Holdings records 59% top-line growth

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Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) continued to demonstrate resilience amidst prevailing macroeconomic conditions, reporting an impressive top-line growth of 59% YoY. The Group recorded a consolidated revenue of
Rs 11.7 billion during the first quarter of the current financial year (1QFY23) with Profit after tax (PAT) growing 54% to Rs 1.6 billion.

The Group’s Healthcare sector emerged as the largest contributor to Sunshine’s top-line, accounting for 50% of total revenue, with Consumer at 33%, and Agribusiness 16% of the total revenue.

During the period in review, Group’s Healthcare sector posted revenue of Rs 5.8 billion during the first quarter, a significant increase of 46% YoY backed by the price increases to reflect the depreciation of the Rupee, despite volume contraction. Group’s Healthcare sector EBIT for the sector was
Rs 743 million.

Consumer Goods sector reported a 109% YoY increase in revenue to close at Rs  3.9 billion in 1QFY23. In April 2022, Sunshine Tea (Pvt) Ltd, which is a tea export business, was acquired by the Group and its performance is consolidated under Consumer Goods sector with effect from 1st April 2022.

Excluding the new addition, revenue growth stood at 8%. Gross margins were impacted by the rising cost of raw materials, but EBIT margin has improved by 404 bps compared to the same period last year.

The Agribusiness sector of the Group, represented by Watawala Plantations PLC (WATA), saw a revenue increase of 32% during the first quarter compared to the same period last year. PAT of the Agri sector closed at Rs.734 million for 1QFY23, up by Rs. 10 million compared to the same period last year. However, EBIT decreased by Rs.27 million (3% contraction YoY).