Sunshine Holdings strong results propelled by Healthcare and Consumer sectors

Diversified Sri Lankan conglomerate Sunshine Holdings PLC has recorded resilient revenue growth amidst the backdrop of moderately stable macroeconomic conditions, reporting notable top-line and bottom-line growth during the year ended 31 March 2024.

The group’s Healthcare and Consumer sectors led growth while healthcare segment remained the major contributor to total Group revenue in FY24, the company said in a media release.

Sunshine recorded a consolidated group revenue of Rs.55.5 billion for the year ended 31 March 2024, a 7% Year-on-Year (YoY) growth. Profit after tax (PAT) for the period in review increased by 66.4% to Rs. 6 billion. The gross profit also increased by Rs. 3.7 billion, representing a 27.6% YoY growth, primarily driven by the margin expansion in both the healthcare and consumer segments.

The group’s financial performances were declared at a time when the International Finance Corporation (IFC) announced a proposed equity investment of up to Rs. 3.2 billion in its healthcare arm, Sunshine Healthcare Lanka (SHL). Subject to satisfaction of conditions, IFC will own approximately 14.7% of SHL. The investment further underscores the confidence of international agencies in Sunshine Holdings’ growth plans.

The group’s Healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 50% of the total, while Consumer Goods and Agribusiness sectors of the group contributed 34.8% and 15% respectively of the total group revenue. The group’s operating profit (EBIT) closed at Rs. 8.7 billion, an increase of 23.7% YoY. Additionally, the group’s finance cost  for the period in review decreased to Rs. 1.2 billion from Rs. 1.5 billion in the previous year.

Amal Cabraal, Chairman of Sunshine Holdings PLC, remarked, "Despite the persistent economic challenges during FY24, Sunshine Group has shown remarkable resilience and agility. All key sectors have delivered robust performance. Our steadfast commitment, strategic execution, prudent fiscal management, and innovative practices have enabled us to successfully navigate the market's complexities.”

Shyam Sathasivam, Group CEO of Sunshine Holdings, stated, “Our achievement of crossing the Rs. 6 billion PAT mark for the first time in Sunshine Holdings' history is a testament to the exceptional capabilities and dedication of our team. It is their commitment and spirit that have driven our business to this remarkable milestone. The group’s robust internal processes, investments in digital capabilities, and focus on operational excellence have been pivotal in delivering this performance.”