Sunshine posts consolidated revenue of Rs. 11 bn, an increase of 9.3 % YoY | Daily News

Sunshine posts consolidated revenue of Rs. 11 bn, an increase of 9.3 % YoY

Group Managing Director  Vish Govindsamy
Group Managing Director Vish Govindsamy

Diversified conglomerate Sunshine Holdings (CSE: SUN) posted consolidated revenue of Rs. 11 billion for the six months ending 30 September (1HFY21), an increase of 9.3% YoY compared to the corresponding period of last year.

Profit after tax (PAT) for the period in review rose to Rs. 1.3 billion, an increase of 34.8% YoY, on the back of the profit arising from the improved performance in the agribusiness sector.

The PAT margins increased to 11.7% for 1HFY21 from 9.5% in 1HFY20 mainly due to the margin increase in the agribusiness sector. Net Asset Value per share also increased to Rs. 59.33 as at end 1HFY21, compared to Rs. 56.26 at the end of 1HFY20.

Group’s healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 53% of total revenue. In comparison, Consumer and Agribusiness sectors of the Group contributed 25% and 19% respectively of the total revenue.

During the second quarter of FY 2020/21 (2QFY21), Sunshine Holdings posted a consolidated revenue of Rs. 6.2 billion (an increase of 15.7% YoY) with a post-tax profit of Rs. 733 million, an increase of 11% YoY compared to the same quarter in last year.

During 2QFY21, the Groups Consumer sector acquired 100% shareholding of Daintee Limited to further expand its presence, beyond tea, in the local consumer goods sector. Daintee is a market leader in sweets and toffee category in Sri Lanka with 40% market share.

Sunshine Holdings Group Managing Director Vish Govindsamy said, “as a group, Sunshine has been facing challenges in some of our core sectors but we remain optimistic about consolidating our operations to strengthen the overall performance of the Group further.”

Group’s healthcare segment generated Rs. 5.8 billion in turnover during 1HFY21, representing a growth of 10% YoY on the back of volume growth. Medical devices and retail business within healthcare had a challenging time due to lower occupancy rates in hospitals and a significant reduction in store operating hours due to lockdown during the period in review.

Sunshine’s consumer business, reported a top-line of Rs.2.8 billion in 1HFY20, contracting 0.4% YoY, and accounted for 25% of group revenue for the period. 1HFY21 has been a challenging period for the domestic branded tea business due to subdued consumer spending and retail price reductions.

The Group’s agribusiness sector, represented by Watawala Plantations PLC (WATA) and Watawala Dairy Limited (WDL), saw a revenue increase of 17.3% YoY to Rs. 2.1 billion. The increase was mainly due to the increase in palm net sale average (NSA) and milk prices.

Revenue of the Group’s renewable energy business amounted to Rs.209 million in 1HFY21, up 109.4% YoY from Rs.100 million during 1HFY20, as a result of higher rainfall in the catchment areas and optimal.

In agribusiness, Sunshine expects prices to be stable in the short term. On the dairy sub-sector, the total milking cows for the period stood at 784 and the Group expects to rationalise the feed cost further and increase selling price due to higher demand for quality milk.