Business
Sunshine Holdings ups 9-month revenue by 60% despite challenges
Diversified conglomerate Sunshine Holdings (CSE: SUN) reported a consolidated revenue of Rs. 38.6 billion for the nine months ending 31 December 2022 (9MFY23), an increase of 60% YoY compared to the corresponding period of last year.
Profit after tax (PAT) for the period in review rose to Rs. 3.8 billion, an increase of 5.6% YoY, despite contraction in volumes and higher interest cost. The gross profit amounted to Rs. 10.2 billion, up 25.3% YoY compared to the previous year, in line with the Group’s revenue growth. Gross profit margin for the period in review stood at 26.4%, which is a contraction of 730 basis points against the same period last year. Profit attributable to equity shareholders (PATMI) was Rs. 2.2 billion for 9MFY23, an increase of 21.2% YoY.
The Group’s Healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 45.7% of total revenue. Consumer and Agribusiness sectors of the Group contributed 36.5% and 17.2% respectively of the total revenue. In April 2022, Sunshine Tea (Pvt) Ltd, which is a tea export business, was acquired by the Group and its performance is consolidated under Consumer Goods sector w.e.f. 1st April 2022.
Commenting on the performance, Sunshine Holdings Chairman Amal Cabraal said, “Amidst tough market conditions, the notable growth in revenue is attributed to strong contributions from all our business sectors on the back of well executed strategies. In the short to medium term, we expect the operating environment to remain challenging. Unprecedentedly high finance costs, soaring inflation along with significantly increased tax rates impacting disposable income and dampening consumption and key export markets experiencing recessionary conditions are some of the key challenges that need to be overcome. The effects of the economic crisis and consequent corrective measures are leading to talent migration and talent retention has become increasingly challenging. With sharper and more agile planning and operational excellence across all sectors, the Group will remain focused on adding value to its local customers and consumers and leverage its recently acquired export business to deliver growth outside Sri Lanka.”
Healthcare
Group’s Healthcare segment generated Rs. 17.6 billion in turnover during 9MFY23, representing a significant growth of 36.3% YoY on the back of improved performance in Pharmaceutical and Medical Devices segments. Lina, the Pharma manufacturing business of the Group, experienced revenue growth mainly due to price revisions together with the revenue earned from Metered Dose Inhaler (MDI) sales to the government. The first MDI sale was made in the month of July 2022 marking the commencement of commercial operations in Lina Spiro. The Healthcare sector PAT decreased by 2.5% YoY.
Consumer Goods
Recording a 133.8% increase in revenue compared to the corresponding period of last year, the Consumer Goods Sector recorded a revenue close to Rs. 14.1 billion. Excluding the new addition of Sunshine Tea, revenue growth stood at 30.7%. Both tea and confectionary categories have seen a noteworthy increase in revenue during the period in review. The PAT of the sector amounted to Rs. 498 million (up 115.7% YoY) compared to the same period last year.
Agribusiness
The Group’s agribusiness sector, represented by Watawala Plantations PLC (WATA) and Watawala Dairy Limited (WDL), saw a revenue increase of 32.1% YoY to Rs. 6.6 billion. EBIT margin for 9MFY23 stood at 41.5%, against 56.2%in the corresponding period last year, owing to increased cost of bought crop and reduction in crop volumes by 6.32% YoY. PAT of the Agri sector closed at Rs. 2.6 billion for 9MFY23, down 2.8% YoY compared to the same period last year.
About Sunshine Holdings
Sunshine Holdings PLC is a diversified conglomerate contributing to ‘nation-building’ by creating value in vital sectors of the Sri Lankan economy – healthcare, consumer goods and agribusiness. Established in 1967, the group is now home to leading Sri Lankan brands such as Zesta Tea, Watawala Tea, Ran Kahata, Daintee Confectionary and Healthguard Pharmacy, with over 2,300 employees and revenue of Rs. 39 billion YTD 2022/23. The business units comprise of Sunshine Healthcare Lanka, Sunshine Consumer Lanka and Watawala Plantations PLC, which are leaders in their respective sectors and many of them certified as a “Great Place to Work” in 2021.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
US sports envoys to Lanka to champion youth development
Rahuman questions sudden cancellation of leave of CEB employees
