Sunshine profits up 17.3% in 1HFY2017/18
View(s):Diversified Sri Lankan conglomerate Sunshine Holdings PLC has reported growth in top and bottom line performance after posting consolidated revenue of Rs. 10.3 billion.
Year-on-Year (YoY) post-tax profits rose by 24.2 per cent during the six-month period ending September 2017, the company said in a media release.
Consolidated group revenue increased by 8.9 per cent YoY, bolstered by strong performances in agri and FMCG (Fast Moving Consumer Goods) sectors, despite a slight reduction in growth within the healthcare sector. However, the group’s healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 38 per cent of total revenue. Agribusiness and consumer sectors contributed 36 per cent and 23 per cent respectively of the total revenue.
Profit after tax for the period in review rose to Rs. 1.1 billion, on the back of strong performance in the agri sector. The group’s post tax profit grew by 25.8 per cent to Rs 532 million.
Vish Govindasamy, Group Managing Director of Sunshine Holdings PLC, said: “Our continuous focus on improving quality and internal efficiency through well-placed strategies has yielded strong results for the group, transforming another quarter into a successful, highly dynamic one. Throughout the period, key business sectors have faced notable challenges but however we are pleased to note that the Sunshine Group continues to display a resilient and entrepreneurial spirit in the face of such difficulties. Due to the impact of imposing price controls on pharmaceuticals last year, our healthcare sector continues to face significant challenges, but it has been able to emerge as the largest contributor to the group revenue. Agri and Consumer sectors have been able to continue their momentum as both sectors have reported impressive revenue growth during this period”.
In total, the group’s healthcare segment generated Rs. 4 billion in turnover during the period under review, a slight dip against last year.
The group’s agribusiness sector, represented by Watawala Plantations PLC, recorded 13.9 per cent YoY growth to Rs. 3.8 billion on the back of increased improvement in production quality and increase in market price.
The dairy segment of Sunshine Holdings is also set to expand in 2HFY2018 with the total milking cows increasing to 479. The next herd of livestock is also expected to arrive from Australia with daily milking volume already reaching 10,000 liters per day; however, Mr. Govindasamy noted that the interim cost of feeding the whole herd would have a negative impact to the group’s agri profits over the short to medium term.