Sunshine Holdings profits up
Announces one into ten share sub-division; ventures
into renewable energy:
Group profit before tax grew by a noteworthy 87 per cent to Rs 558
million, while profit after tax more than doubled to Rs 433.5 million on
a turnover of Rs 6.9 billion, which reflected an increase of 23 per
cent.
Strong prospects underpinned by solid performances at the end of the
third quarter of 2009-10 by its businesses in healthcare and plantations
have prompted Sunshine Holdings PLC to announce plans for a one into ten
share sub division which will greatly increase share capital liquidity.
The company currently has 13,333,333 issued ordinary shares which
will increase to 133,333,330 upon sub division.
The owning company of Swiss Biogenics Limited, Watawala Plantations
PLC and companies in travel and packaging.
Sunshine Holdings achieved an attributable profit of Rs 252 million
for the nine months ending December 31, 2009, a remarkable 90 per cent
increase over the corresponding nine months of last year.
Describing these results as “impressive” Sunshine Holdings’ Chairman
Rienzie T. Wijetilleke attributed the Group’s performance to a renewed
focus on operational efficiencies in all group companies. Announcing
plans to enter the Power sector in the fourth quarter of the year with
the launch of Sunshine Power Limited, he said: “With this
diversification, we hope to be a significant player in building the
infrastructure of our economy.”
This will be the group’s first venture into the renewable energy
sector and will generate hydropower potential of 1.6 MW in the
foreseeable future.
Wijetilleke said, “that the country’s economic environment will
rebound faster than the region, especially as Sri Lanka has just begun
to capitalise on the peace dividend.
This opportunity allow all sectors of the economy to grow faster than
expected, and this will be reflected in all our business sectors as
well”, he said.
Total assets of the Group increased to Rs 6.7 billion as at December
31, 2009, a growth of 5 per cent over the preceding 12 months.
Earnings per share nearly doubled from Rs 9.96 for the first nine
months of the previous year to Rs 18.90 for the period under review,
while net assets per share improved 17 per cent to Rs 120.75.
The Sunshine Holdings share price achieved a high of Rs 196 during
this period.
In segmental results, the healthcare sector comprising Swiss
Biogenics, the largest private sector player in Sri Lanka in
pharmaceuticals, diagnostics and surgical accessories, and Healthguard,
a strategic venture in healthcare retailing, posted a profit after tax
of Rs 165 million, a growth of 31 per cent.
“Our presence in all major sectors in healthcare products,
pharmaceuticals, surgical and medical devices, diagnostics and
nutraceuticals enabled us to increase our overall market share as we
introduced new products in all segments,” Wijetilleke said.
The Group’s plantations company increased its post-tax profit
contribution to Rs 227 million, a growth of 255 per cent on the back of
improved performances from Palm Oil and retail marketing.
In the Packaging sector, the Group incurred a marginal loss
attributed to the impacts of the global recession.
“We however foresee a recovery in our main customer segment — tea
exporters — as their trading environment improves, and with timely
investment in equipment, we should be able to improve returns in the
medium term,” Wijetilleke said.
A group focused on expansion locally and internationally, Sunshine
Holdings is associated with Tata Tea Ltd, and its subsidiary the Tetley
Group, and has also extended its interests into telecommunications with
the acquisition of a 10 per cent stake in Tata Communications Lanka Ltd,
a subsidiary of Tata Communications Ltd, India (TCL), which is owned by
the Tata Group.
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