Sri Lankan conglomerate Sunshine Holdings PLC posted consolidated revenue of Rs. 10.5 billion, resulting in a 3 per cent Year-on-Year (YoY) decrease for the first half of the 2019/2020 financial year.

Consolidated revenue of the group decreased due to the sale of a majority stake in the tea plantation business represented by Hatton Plantations PLC (HPL) during the first quarter.

Profit after tax (PAT) for the period in review rose to Rs. 1.2 billion, on the back of profit from sale of Hatton Plantations PLC's, which amounted to Rs. 343 million. The group's Profit After Tax and Minority Interest (PATMI) also grew by 72.5 per cent YoY to Rs. 731 million. Watawala Plantation PLC, the group's agribusiness subsidiary was the largest contributor to PATMI, accounting for 46 per cent of the total and Healthcare accounting for 38 per cent, the company said in a media announcement.

The PAT margins increased to 11.7 per cent for 1HFY20 from 7.2 per cent in 1HFY19 mainly due to the profit gained from the sale of Hatton Plantations PLC.

The group's healthcare business emerged as the largest contributor to Sunshine's top-line performance, accounting for 48 per cent of total revenue, while Consumer and Agribusiness sectors of the group contributed 25 per cent and 21 per cent respectively of the total revenue.

'Following the unfortunate events last April, the struggling economy has negatively impacted many industries in the country. During the period in review, this negative impact brought many challenges to some of the key business sectors of Sunshine Group as well,' commented Vish Govindasamy, Group Managing Director of Sunshine Holdings. 'However, we have remained resilient in the face of such difficulties, and with expected improvements in micro and macro indicators, we remain optimistic about consolidating our operations to strengthen the overall performance of the group further.'

In total, the group's healthcare segment generated Rs.5.3 billion in turnover during 1HFY20, representing a growth of 19.2 per cent YoY on the back of volume and price growth in the pharma and medical devices sub-sector.

'In Healthcare, we expect strong growth for 3QFY20, especially in the medical devices and pharma sub-divisions. We are closely monitoring the changes in the exchange rate, which is sensitive to our margins. The sector will continue to focus on improving the product range and service quality. At Healthguard, the focus continues to be on developing a speciality range of Beauty and Wellness products while attracting more customers to the chain. We recently opened our newest outlet at One Galle Face Mall which we believe will help us grow revenue during the second half,' Mr. Govindasamy said.

The group's agribusiness sector, represented by Watawala Plantations PLC (WATA) and Hatton Plantations PLC (HPL), saw a revenue decline of 33 per cent YoY to Rs. 2.3 billion. The decrease was mainly due to unfavourable weather conditions which impacted group's tea plantations, and the divestment of a majority stake in Hatton Plantations PLC during the latter part of the first quarter. Overall, palm oil and dairy segments recorded a 17.6 per cent YoY growth mainly due to better performance of the palm oil sector which was driven by improving yields.

On the dairy sub-sector, the total milking cows for the period stood at 853, producing 3 m. litres of fresh milk for the period compared to 2.7 m. litres during the same period last year. Mr. Govindasamy also noted that the group will continue to focus on rooftop solar projects with the capital raised from their joint venture partners during the period.

© Pakistan Press International, source Asianet-Pakistan