Sunshine Holdings 4Q profits outdo previous year

Sunshine Holdings PLC returned to pre-pandemic performance during the three months to March 2021 (4Q21) as the group, which has interests in healthcare rode on the pandemic-fuelled demand while its consumer and agribusinesses did well on the consumer spending surge.

The group, which operates the Healthguard chain of retail stores, reported revenues of Rs.6.9 billion in the fiscal fourth quarter, rising by robust 37 percent from the same period last year. 

The group said its healthcare business revenue rose by 24 percent to Rs.3.7 billion from a year ago while consumer business revenues surged 76.5 percent to Rs.2.2 billion and its agribusiness revenues, which include oil palm and dairy operations, were up 30 percent to Rs.1.0 billion from the same quarter last year. 

The group also had interests in renewable energy through hydropower and rooftop solar projects before it in April 2021 divested its stake in the mini hydropower business under Waltrim Hydropower (Pvt) Ltd to Aitken Spence PLC with the aim of re-focusing on core sectors. 

Sunshine group’s business portfolio demonstrates its defensive nature during tough economic times.

“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 company said 
in a statement.

Sunshine known for its zeal for making corporate deals merged with Akbar Pharmaceuticals in January 2021 to become Sri Lanka’s first fully integrated healthcare company with the addition of pharma manufacturing and 
R&D operations. 

“Post-transaction, Sunshine Holdings owns 72 percent of Sunshine Healthcare Lanka Limited which was previously a fully owned subsidiary, whereas Akbar Brothers Ltd owns the remaining 28 percent shares,” the company said. 

Strengthening the group’s consumer business, which has well-known brands like Zesta and Watawala Tea under its belt, the company in August 2020 acquired 100 percent shares in confectionary maker Daintee Limited, expanding its FMCG line of products. This acquisition mainly contributed to the revenue increase in the consumer business. 

In the agribusiness segment, the dairy business under Watawala Dairy Limited raised US$ 2 million in equity from SBI Japan for 11 percent stake in the company in May 2021 to expand the dairy operations and strengthen the company’s balance sheet.

Accordingly, Sunshine group reported earnings of 96 cents a share or Rs.430.9 million for the January- March 2021 quarter compared to earnings of 28 cents a share or 126.6 million in the same period in 2020. 

For the year ended in March 31, 2021, the group reported earnings of Rs.3.39 a share or Rs.1.52 billion compared to earnings of Rs.2.56 a share or Rs.1.15 billion. The group reported full year revenues of Rs.24.3 billion, up 17 percent.