Sunshine Holdings posts Rs 1,004 m profit
Sunshine Holdings (SUN) recorded its highest posted results this
year, with the Group reporting Rs 1,004 mn in net profit. This 38
percent YoY growth in profit after tax has been steered by the growth
from the plantations and healthcare segments.
This results in the company reporting an EPS of Rs 3.75 for the last
financial year.
Chairman Rienzie Wijetilleke |
Sun's group revenue for FY 2011 increased by 14 percent YoY to Rs
10,732mn supported by the Plantation and Healthcare segments, which
recorded revenues of Rs 6,158mn, and Rs 4,329mn respectively.
Sunshine Holdings has a strong foothold in the plantations segment
through its subsidiary Watawala plantations. Watawala (WATA) is engaged
in the cultivation and manufacture of tea, rubber and palm oil, with the
primary revenue generator for the Company being tea. The plantations
segment has seen a revenue growth of 9.7 percent YoY to Rs 6,158mn.
Tea prices have held steady within the last year resulting in a 9.2
percent YoY increase in Tea revenue. However, the key growth category
was rubber, recording an 85 percent growth YoY. This is attributed to
the strong natural rubber prices that prevailed.
With the global demand for natural rubber on the rise, the outlook
looks positive for this segment.
Watawala also has a strong FMCG arm and markets popular brands such
as Watawala Kahata and Zesta.
The second highest revenue and profit generator for the group is the
Healthcare segment.
A 100 percent subsidiary of Sunshine Holdings PLC; SBL's primary
operations are importing and marketing pharmaceuticals and medical
equipment used for diagnostics and surgery.
The Healthguard pharmacy chain also contributes to this segment's
earnings via the retailing of pharmaceuticals.
Revenue from this segment grew by 19.9 percent to Rs 4,329mn and
benefitted from increased sales in higher margin products.
The recent reduction in import duty in pharmaceutical items and the
stable exchange rates that prevailed also contributed positively to the
healthcare segment. |