Sri Lanka’s Sunshine Holdings reports 14.1% YoY top-line growth in 1Q
Daily FT: Diversified Sri Lankan conglomerate Sunshine Holdings PLC said it continued to demonstrate resilience amidst prevailing macro-economic conditions, reporting a top-line growth of 14% YoY.
The Group recorded a consolidated revenue of Rs. 13.4 billion during the first quarter of the current financial year (1QFY24) with Profit after tax (PAT) contracted by 10.6% YoY to Rs. 1.4 billion as a result of, 32.4% YoY increase in admin and S&D expenses, and a 93.5% YoY increase in finance costs during the period. The revenue increase was mainly due to robust revenue growth in key sectors of the Group —Healthcare, Consumer and Agribusiness.
The Group’s Healthcare sector emerged as the largest contributor to Sunshine’s top-line, accounting for 47.2% of total revenue, with Consumer at 35.1%, and Agribusiness 17.6% of the total revenue.
Sunshine Holdings PLC Chairman Amal Cabraal said: “Despite the headwinds, Sunshine Holdings has demonstrated remarkable strength, achieving a commendable top-line growth in the first quarter of FY24. Our robust performance reflects the unwavering commitment and dedication of our team, coupled with strategic focus in key sectors of Healthcare, Consumer, and Agribusiness. As we navigate through the prevailing economic uncertainties, our ability to adapt and thrive stands as a testament to the agility and resilience embedded within our organization. Despite challenges, we remain steadfast in our pursuit of sustainable growth and value creation for our stakeholders.”
The growth recorded by Sunshine Holdings is in line with the overall growth and profits recorded by a majority of Sri Lanka’s private sector businesses. Despite the many economic challenges faced by the country since the global pandemic and an economic crisis, the growth and profits recruitment by the country’s private sector is indicative of the overall strength and resilience of Sri Lanka’s economy. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have also helped the country’s overall economic expansion. The country banking sector has also recorded profits amidst challenges. Therefore, foreign businesses/investors could confidently explore the expanding business/investment opportunities in Sri Lanka. They could also look at forming partnerships or joint ventures with local businesses with the aim of expanding locally and internationally.
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