Strong healthcare sector performance boosts Sunshine Holdings’ revenue to Rs. 45.2 billion
Daily FT: Diversified conglomerate Sunshine Holdings reported a consolidated revenue of Rs. 45.2 billion for the nine months ending 31 December 2024 (9MFY25), an increase of 6.7% year-on-year (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 Rs. 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. The 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: “The Sunshine Group continues to build on its strong foundation across our key business sectors. While the economy has witnessed 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.”
The 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.
OSL take:
The growth and expansion of private sector businesses in Sri Lanka after the country faced an unprecedented economic crisis in 2022 indicates the overall strength, resilience and growth of the country’s economy. The ongoing economic expansion in Sri Lanka therefore presents many lucrative business/investment opportunities in the country. Also, the increase in revenue recorded by a Sri Lankan group of companies due to the performance in the healthcare sector further indicates the increasing business potential in Sri Lanka’s health sector. Local tourism authorities are also looking at promoting the concept of medical tourism among tourists that has also resulted in a growth in tourists for medical and indigenous medical treatment in Sri Lanka. With Sri Lanka on a growth path with focus on expanding key economic sectors including healthcare, manufacturing and exports, foreign businesses/investors could confidently explore the growing business/investment opportunities in Sri Lanka while also looking at expanding operations through local collaborations.
| Article Code : | VBS/AT/2025021/Z_4 |