Healthcare and Consumer propel Sunshine Holdings’ strong FY21 performance
View(s):Diversified Sri Lankan conglomerate Sunshine Holdings has recorded resilient revenue and profit growth in a pandemic-affected macroeconomic environment, reporting notable top-line and bottom-line performances growth during the year ended 31 March 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, it said in a media release.
Mr. Vish Govindasamy
Sunshine recorded a consolidated group revenue of Rs.24.3 billion for the year ended 31 March 2021, an increase of 16.6 percent over last year. Profit after tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5 percent YoY, and profit margins have also increased to 10.4 percent compared to last year’s 8.8 percent.
The group’s Healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53 per cent of the total, while Consumer Goods and Agri Business sectors of the group contributed 29 percent and 16 percent respectively of the total group revenue. The gross profit closed at Rs. 7.7 billion, up 25.2 percent 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 percent YoY.
Profit after Tax and Minority Interest (PATMI) increased by 32.7 percent YoY to Rs.1.5 billion; the Healthcare sector made the largest contribution to PATMI, accounting for 37 percent of the total.
Commenting on the performance, 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 short to medium term due to the negative economic impact due to the COVID-19 pandemic and subsequent lockdowns.
During the period under review, Group’s Healthcare sector grew its revenue by 14.5 percent YoY to Rs. 12.8 billion. The sector achieved growth in Pharma, Medical Devices and Retail subsectors with significant improvement in second half of the year owing to the recovery from the COVID-19 lockdown.
Pharma and Medical Devices sectors achieved the highest per quarter revenue during the last quarter while Healthguard, the retail arm of the Healthcare sector, witnessed an increase in sales in the mid of FY21 which was predominantly driven by the increase in health and wellness consciousness of consumers with the spread of COVID-19 in the country.
The group’s Healthcare sector merged with Akbar Pharmaceuticals in January 2021 making it Sri Lanka’s first fully integrated Healthcare company with the addition of pharma manufacturing and R&D operations.