Strong healthcare sector performance in 9MFY25 boosts Sunshine Holdings’ revenue to LKR 45.2 billion

• Consolidated revenue of LKR 45.2 billion, up by 6.7%
• Healthcare revenue up 17.8% YoY to LKR 24.8 billion
• Consumer Brands recorded a revenue of LKR 14.4 billion, down 3.1% YoY

Diversified conglomerate Sunshine Holdings (CSE: SUN) reported a consolidated revenue of LKR 45.2 billion for the nine months ending 31 December 2024 (9MFY25), an increase of 6.7% YoY.

Gross profit margin for the period in review stood at 30.8%, compared to 31.3% in the same period last year, reflecting the resilience of core operations.  Profit after tax (PAT) for the period in review contracted 14.1% to LKR 4.7 billion due to margin contraction in the Consumer Brands segment and higher taxation impact in the Agribusiness sector. 

The Group’s Healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 54.9% of total revenue. Consumer Brands and Agribusiness sectors of the Group contributed 31.8% and 13.3% respectively of the total revenue. 

Commenting on the performance, Group Chief Executive Officer Shyam Sathasivam said, “Sunshine Group continues to build on its strong foundation across our key business sectors. While the economy has witnesses a moderate stability with improved credit ratings, macroeconomic pressures on consumer purchasing power prevail which challenge the Group, especially our Consumer Brands. However, we remain confident in our ability to navigate these challenges and sustain resilience in the upcoming quarters. As we move forward, we remain focused on driving sustainable growth and value creation across all our business verticals. Furthermore, we have decided to implement a share split of the ordinary share capital for Sunshine Holdings PLC, reflecting our commitment to improving market accessibility and liquidity to our investors.”

Healthcare

Group’s Healthcare segment sustained its strong revenue growth momentum, recording a 17.8% YoY increase, supported by higher volumes in pharmaceutical agency, distribution, and manufacturing operations. Building on revenue growth in the above segments, the sector’s profitability improved, with EBIT margins increasing to 17.9% in 9MFY25 (compared to 16.2% in 9MFY24).

Lina Manufacturing, the Pharmaceutical manufacturing business of the Group, recorded an impressive revenue growth of 101.5% YoY, mainly driven by higher volumes in the Metered Dose Inhaler (MDI) plant.

Consumer Brands

The Consumer Brands sector, which includes both export and domestic businesses, reported a revenue of LKR 14.4 billion, representing a slight decline of 3.1% YoY in 9MFY25. Revenue from the Branded Tea and Confectionery (domestic business) businesses declined by 17.4% YoY, largely due to the reduced volumes in the confectionery segment during the period. Volume of Branded Tea grew by 1.4% YoY despite a 13.3% YoY value contraction in 9MFY25, primarily due to the partial implementation of VAT to the consumer. The confectionery segment revenue declined by 30.0% YoY while the export segment revenue increased by 30.0% YoY during the period in review.

Agribusiness

The Group’s Agribusiness sector, represented by Watawala Plantations PLC (CSE: WATA) and Watawala Dairy Limited (WDL), reported a revenue decline of 7.1% YoY to LKR 6.0 billion, primarily due to lower prices in the palm oil segment in 9MFY25. This effect, together with revised taxation rates, cascaded down to the segment's profitability, resulting in a net profit margin of 31.2% for the period ending 9MFY25, compared to 40.8% in the same period last year. The dairy business recorded revenue of LKR 916.5 million in 9MFY25, down from LKR 1,088.5 million in the same period last year driven by reduction in both volume and selling price.

About Sunshine Holdings

Sunshine Holdings PLC is a publicly listed diversified conglomerate contributing to ‘nation-building’ by creating value in vital sectors of the Sri Lankan economy – Healthcare, Consumer Brands and Agribusiness. Established in 1967, the group is now home to leading Sri Lankan brands such as Zesta Tea, Watawala Tea, Ran Kahata, Daintee, Milady, Healthguard Pharmacy and Lina Manufacturing, with over 2,000 employees and revenue of LKR 55 billion FY 23/24. 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 2024.