Sunshine recorded a consolidated Group revenue of Rs.24.3 billion for the year ended 31 March 2021, an increase of 16.6% over last year. Profit after tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5% YoY, and profit margins have also increased to 10.4% compared to last year’s 8.8%. These improved results stem from revenue growth, margin increases in key sectors and strategic measures taken by the group to rationalize operating cost and lower finance expenses.
The Group’s Healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53% of the total, while Consumer Goods and Agri-Business sectors of the group contributed 29% and 16% respectively of the total Group revenue. The gross profit closed at Rs. 7.7 billion up 25.2% 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% YoY.
Profit after Tax and Minority Interest (PATMI) increased by 32.7% YoY to Rs1.5 billion; the Healthcare sector made the largest contribution to PATMI, accounting for 37% of the total while Agribusiness accounted for 30% of the total. Net Asset Value per share increased to Rs. 23.48 as at end-March 2021, compared to LKR 18.75 at the end of March 2020.
Sunshine Holdings Group Managing Director Vish Govindsamy said, “All possible measures have been taken to ensure business sustainability and continuity in the coming months. We are proud that the Group has remained resilient in the face of such difficulties.
For increasing exposure to its defensive core sectors, and maintaining a healthy balance sheet, Sunshine Group’s Fitch rating was upwardly revised to ‘AA+(lka)’; Outlook Stable, from ‘A(lka)’ in January 2021 (reaffirmed in March 2021).
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.
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.
Spearheaded by brands like ‘Zesta’, ‘Watawala Tea’, ‘Ran Kahata’ and ‘Daintee’, the Consumer sector continued its impressive growth by posting revenues of Rs. 7.1 billion in FY21, an increase of 30.8% YoY and accounted for 29% of group revenue for the period.
The Group’s agribusiness sector, represented by Watawala Plantations PLC (WATA), saw a revenue increase of 2.5% YoY to Rs. 3.9 billion due to an increase in Palm oil net selling average (NSA) and milk prices.
The dairy segment, which commenced operations in 2018, made profits in FY21 contributing to 4% of the Agribusiness sector PBT. In addition, to the increase in NSA, the profitability of the dairy segment was further driven by lean management and rationalization of feed cost, despite the increase in commodity prices of key raw materials during 4Q.PAT for the Agri sector increased by 120.2% to Rs. 1.6 billion.
In the Agribusiness sector, the dairy business under Watawla Dairy Ltd (WDL) raised US$2million in equity from SBI Japan for an 11% stake in the company in May 2021. The proceeds will be utilized to expand dairy operations and strengthen the balance sheet of WDL.
