Sri Lanka’s Sunshine Holdings records strong FY21 performance amidst pandemic
Sri Lankan conglomerate Sunshine Holdings has reportedly recorded resilient revenue and profit growth in a pandemic-affected macroeconomic environment, recording a notable top-line and bottom-line performance growth during the year ended 31 March (FY20/21).
The group’s Healthcare and Consumer sectors led growth while the healthcare segment remained the major contributor to total Group revenue in FY21, according to local media reports.
According to reports, Sunshine has recorded a consolidated Group revenue of Rs. 24.3 billion for the year ended 31 March, an increase of 16.6% over last year.
Profit After Tax (PAT) for the period in review had 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% and these improved results stem from revenue growth, margin increases in key sectors and strategic measures taken by the group to rationalise operating cost and lower finance expenses, the Daily FT has reported.
The group’s healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53% of the total, while consumer goods and agribusiness sectors of the group had contributed 29% and 16%, respectively of the total Group revenue.
The gross profit had 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, reports further noted.
Profit After Tax and Minority Interest (PATMI) had increased by 32.7% YoY to Rs. 1.5 billion; the healthcare sector made the largest contribution to PATMI, accounting for 37% of the total while agribusiness had accounted for 30% of the total. Net Asset Value per share increased to Rs. 23.48 as at end March 2021, compared to Rs. 18.75 at end March 2020.
Commenting on the performance, Sunshine Holdings Group Managing Director Vish Govindsamy has been quoted as saying that as a group, Sunshine has been facing challenges in some of its core sectors and will continue to do so in the short to medium terms due to the negative economic impact due to the Covid-19 pandemic and subsequent lockdowns.
“However, Group’s robust cost management initiatives, process reengineering efforts backed by digital technologies to ensure overall efficiency and business continuity have helped Sunshine to outdo last year’s results and drive strong performance in FY21, where the group has been able to rebound from the adverse impacts brought by a tough macroeconomic business environment. We are proud that the group has remained resilient in the face of such difficulties, and we remain optimistic about consolidating our operations to strengthen the overall performance of the group further. All possible measures have been taken to ensure business sustainability and continuity in the coming months,” Govindasamy has added.
The strong performance recorded by a Sri Lankan conglomerate is indicative of the strength, growth and the condusive environment for businesses in the country. Despite the challenges posed by the global Covid 19 pandemic, Sri Lanka’s economy has shown great resilience and continues to operate amidst lockdowns. Sri Lanka is fast becoming a business hub in the South Asian region given it’s geographical positioning in the Indian ocean and the many trade agreements as well as trade concessions enjoyed by the country. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka or look at forming joint ventures/partnerships with local businesses.
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