Business

Healthcare and Consumer propel Sunshine Holdings’ strong FY21 performance

Published

5 years ago

2021/05/31

Diversified Sri Lankan conglomerate Sunshine Holdings (CSE: SUN) recorded resilient revenue and profit growth in a pandemic-affected macroeconomic environment, reporting notable top-line and bottom-line performances growth during the year ended 31 March 2021 (FY20/21). Group’s Healthcare and Consumer sectors led growth while healthcare segment remained the major contributor to total Group revenue in FY21.

Sunshine recorded a consolidated Group revenue of Rs.24.3 billion for the year ended 31 March 2021, an increase of 16.6% over last year. Profit after tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5% YoY, and profit margins have also increased to 10.4% compared to last year’s 8.8%. These improved results stem from revenue growth, margin increases in key sectors and strategic measures taken by the group to rationalize operating cost and lower finance expenses.

The Group’s Healthcare business emerged as the largest contributor to Sunshine’s revenue, accounting for 53% of the total, while Consumer Goods and Agri Business sectors of the group contributed 29% and 16% respectively of the total Group revenue. The gross profit closed at Rs. 7.7 billion up 25.2% YoY compared to the previous year, backed by the contribution from the Consumer goods and Agribusiness sectors. The Group EBIT closed at Rs. 3.5 billion, an increase of 21.2% YoY.

Profit after Tax and Minority Interest (PATMI) increased by 32.7% YoY to Rs1.5 billion; the Healthcare sector made the largest contribution to PATMI, accounting for 37% of the total while Agribusiness accounted for 30% of the total. Net Asset Value per share increased to Rs. 23.48 as at end March 2021, compared to LKR 18.75 at the end March 2020.

For increasing exposure to its core sectors, which are defensive in nature, and maintaining a healthy balance sheet, Sunshine Group’s Fitch rating was upwardly revised to ‘AA+(lka)’; Outlook Stable, from ‘A(lka)’ in January 2021 (reaffirmed in March 2021).

Commenting on the performance, Sunshine Holdings Group Managing Director Vish Govindsamy said as a group, Sunshine has been facing challenges in some of their core sectors and will continue to do so in short to medium term due to the negative economic impact due to the COVID-19 pandemic and subsequent lockdowns.

“However, Group’s robust cost management initiatives, process reengineering efforts backed by digital technologies to ensure overall efficiency and business continuity have helped Sunshine to outdo last year’s results and drive strong performance in FY21, where the Group has been able to rebound from the adverse impacts brought by a tough macroeconomic business environment. We are proud that the Group has remained resilient in the face of such difficulties, and we remain optimistic about consolidating our operations to strengthen the overall performance of the Group further. All possible measures have been taken to ensure business sustainability and continuity in the coming months,” Govindasamy commented.

During the period in review, Group’s Healthcare sector grew its revenue by 14.5% YoY to Rs. 12.8 billion. The sector achieved growth in Pharma, Medical Devices and Retail subsectors with significant improvement in second half of the year owing to the recovery from Covid-19 lockdown.

Pharma and Medical Devices sectors achieved the highest per quarter revenue during the last quarter while Healthguard, the retail arm of the Healthcare sector, witnessed an increase in sales in the mid of FY21 which was predominantly driven by the increase in health and wellness consciousness of consumers with the spread of Covid-19 in the country. The Pharma subsector which contributed 66% to Healthcare revenue, grew 14.8% YoY in FY21. Reported PAT for healthcare amounted to Rs.824 million in FY21, up 61.6% YoY at a margin of 6.4%.

Group’s Healthcare sector merged with Akbar Pharmaceuticals in January 2021, making it Sri Lanka’s first fully integrated Healthcare company with the addition of pharma manufacturing and R&D operations. Post-transaction, Sunshine Holdings owns 72% of Sunshine Healthcare Lanka Limited which was previously a fully owned subsidiary, whereas Akbar Brothers Ltd owns the remaining 28% shares.

Spearheaded by brands like ‘Zesta’, ‘Watawala Tea’, ‘Ran Kahata’ and ‘Daintee’, the Consumer sector continued its impressive growth by posting revenues of Rs. 7.1 billion in FY21, an increase of 30.8% YoY and accounted for 29% of group revenue for the period. The revenue growth was predominantly due to the addition of the confectionary business via the acquisition of Daintee during the second quarter. PAT from the Consumer segment increased by 57.2% YoY, to stand at Rs.467 million for FY21. Post-acquisition, Daintee contributed Rs.185 million to the bottom line.

The Group’s agribusiness sector, represented by Watawala Plantations PLC (WATA), saw a revenue increase of 2.5% YoY to Rs. 3.9 billion due to increase in Palm oil net selling average (NSA) and milk prices. Dairy segment, which commenced operations in 2018, made profits in FY21 contributing to 4% of Agribusiness sector PBT. In addition to increase in NSA, profitability of dairy segment was further driven by lean management and rationalization of feed cost, despite increase in commodity prices of key raw materials during 4Q. PAT for Agri sector increased by 120.2% to Rs. 1.6 billion.

In the Agribusiness sector, the dairy business under Watawla Dairy Ltd (WDL) raised US$ 2 million in equity from SBI Japan for an 11% stake in the company in May 2021. The proceeds will be utilized to expand dairy operations and strengthen the balance sheet of WDL.

Revenue for the Renewable Energy division amounted to Rs. 440 million in FY21, up 40.8% YoY from Rs. 313 million during FY20 as a result of favorable weather conditions in the Hydro segment and the expansion of the roof top solar projects. In April 2021, the Group divested its stake in the Mini Hydro Power business, under Waltrim Hydropower (Pvt) Ltd to Aitken Spence PLC with the aim of re-focusing on its core sectors.

In March 2021, Sunshine Foundation for Good— the corporate social responsibility (CSR) arm of Sunshine Holdings, commissioned two Reverse Osmosis (RO) Plants in Galgamuwa in the North Western Province and Medawachchiya in the North Central Province. More than 1,500 students and 5,000 inhabitants in surrounding villages now have access to over 20,000 litres of safe and clean drinking water per day through these newly-launched RO Plants.

The Foundation has commissioned a total of eight RO plants so far in the North Western, North Central, Southern, Central and Uva provinces to date, giving over 20,000 residents in Sella Kataragama, Kataragama, Ambanpola, Handaganawa, Rajanganaya, Galewela, Galgamuwa and Medawachchiya access to clean drinking water.

During the last financial year, Sunshine Holdings also cemented its position as a leading employer in the country after the company secured the coveted certification from The Great Place To Work (GPTW) Institute– recognising Sunshine Healthcare Lanka (Medical Devices and Pharmaceuticals), Watawala Dairy, Sunshine Consumer Lanka, Sunshine Tea and Sunshine Energy. The certification program assessed existing people practices and employee experience within the Group based on the five principals of credibility, respect, fairness, pride and camaraderie. The GPTW Certification was the culmination of thoughtfully crafted human resource practices and values, consistently applied over Sunshine’s 50 years of operations.

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Business

Janashakthi Life delivers 36% revenue growth, ‘outperforming the industry’

Published

3 hours ago

2026/09/3

Sahan Weerasooriya

Janashakthi Life, the flagship company of JXG (Janashakthi Group), delivered a strong first-half performance in 2026, with Gross Written Premiums (GWP) increasing by 36% year-on-year to Rs. 5.11 billion. The Company’s growth significantly outpaced the industry’s 20.8% growth during the period, reflecting continued demand for its life insurance solutions and progress in expanding its customer base and strengthening its market presence.

The Company’s balance sheet also continued to expand, with total assets increasing to Rs. 41.14 billion as at Q2 2026, compared to Rs. 40.37 billion at the end of 2025. The growth reflects the continued scale of the business and provides a stronger platform to serve an expanding policyholder base while investing in the capabilities required to support its next phase of growth.

During the first half, Janashakthi Life paid Rs. 2.24 billion in claims and benefits, reaffirming its commitment to supporting policyholders when it matters most. These payments provide essential financial support at critical moments in the lives of individuals and families, highlighting the vital role of life insurance in protecting their financial wellbeing and long-term security.

The Company remained profitable during the period, recording Profit Before Tax (PBT) of Rs. 271 million, excluding the surplus transfer for the period. With the declaration of the surplus transfer, profitability is expected to be substantially higher. Janashakthi Life remains focused on strengthening earnings quality, managing costs effectively, and translating business growth into sustained improvements in overall performance.

Annika Senanayake, Chairperson of Janashakthi Insurance PLC, said, “The performance in the first half reflects the strength of Janashakthi Life’s business and the opportunities that exist to further develop the life insurance market in Sri Lanka. We remain focused on building a business that combines sustainable growth with sound fundamentals, while making insurance more accessible to a wider segment of the population. As part of JXG, Janashakthi Life is well positioned to leverage the Group’s financial services ecosystem and continue strengthening its position in the market.”

Ravi Liyanage, Director/CEO of Janashakthi Insurance PLC, said, “The first half delivered strong growth across key areas of the business, with GWP increasing 36% to Rs. 5.11 billion. In all key segments, namely regular business, group life business and single premium business, the Company has outperformed the industry significantly, demonstrating its market challenger behaviour. The Company is strengthening its stability, crossing LKR 41 billion in assets under management. Our focus now is on building on this momentum through stronger distribution, improved productivity and disciplined cost management, while continuing to enhance the customer experience by providing an unmatched service throughout the lifespan of the service contract.”

The first-half performance provides a strong platform for Janashakthi Life to build on its growth plans for the remainder of the year. The Company will continue to focus on expanding access to life insurance, strengthening customer relationships and developing solutions that respond to changing financial priorities.

With GWP growth significantly ahead of the industry, a growing asset base and increased claims and benefits delivered to policyholders, Janashakthi Life continues to build scale across its core operations. The Company remains focused on disciplined growth, stronger execution and improving the quality of its performance, with the objective of creating sustainable value for policyholders, shareholders and the wider business.

Further reinforcing its strong market standing, Janashakthi Life was recognised among Sri Lanka’s 50 Best Workplaces™ for 2026 by Great Place To Work® Sri Lanka and was also named among Brand Finance’s Sri Lanka 100 Most Valuable Brands. These recognitions reflect the Company’s continued focus on building a strong brand, delivering value to customers and creating a high-performing organisation. (JXG)

Business

Hunas Holdings and CCH enter strategic collaborative partnership

Published

3 hours ago

2026/09/3

Sahan Weerasooriya

(L-R): Dhanuka Samarasinghe (Chairman - Hunas Holdings PLC) Yoshihiko Tanabe, Director CCH

Major Japanese business group sees long-term potential in Hunas Holdings as the two organisations explore new opportunities for growth in Sri Lanka

Hunas Holdings PLC is entering a new phase of growth through a collaborative partnership with CCH Co., Ltd. (CCH INC.), a major Tokyo-based business group with experience across business process outsourcing (BPO), in-house services, investment, mergers and acquisitions, and business development.

The partnership follows a period in which Hunas Holdings maintained a measured approach to new investments amid volatile market conditions, focusing on identifying the right opportunities and international relationships capable of creating sustainable long-term value.

Founded in Japan in 2008, CCH has grown into a significant and diversified business group with interests across multiple industries. Its approach combines investment with M&A, business development and operational expertise, enabling the company to play an active role in the businesses and markets it enters.

For CCH, the partnership represents an opportunity to bring this experience to Sri Lanka through Hunas Holdings, an established local group with a strong platform and long-term growth ambitions.

Yoshihiko Tanabe, Director of CCH Co., Ltd., said: “Through our discussions with Hunas Holdings, we see a company with strong foundations, local expertise and a clear ambition for growth. We believe there is meaningful potential in bringing the strengths of CCH and Hunas Holdings together. I am excited about this partnership, and particularly about some of the projects and opportunities we are already exploring together. There is much to look forward to soon”

For Hunas Holdings, the collaboration marks a renewed chapter of investment and international partnership, while for CCH, it reflects confidence in Hunas Holdings and the opportunities presented by the Sri Lankan market.

Business

Prime Minister to headline Sri Lanka Economic and Investment Summit session

Published

3 hours ago

2026/09/3

Sahan Weerasooriya

Dr Harini Amarasuriya

Dr. Harini Amarasuriya, Prime Minister of Sri Lanka, will deliver the keynote address at a special session on day 2 of the Sri Lanka Economic & Investment Summit 2026 organised by The Ceylon Chamber of Commerce, titled “Nation Building in the Digital Age”, on 13 October 2026 at the Shangri-La Colombo.

The session will examine how Sri Lanka can use artificial intelligence, digital transformation, innovation and education to accelerate economic growth, improve productivity and build a knowledge-driven economy. As technology reshapes industries and the nature of work, the discussion will focus on how Sri Lanka can develop the capabilities needed to remain competitive and create opportunities for future generations.

The Prime Minister will be joined by Waruna Sri Dhanapala, Secretary, Ministry of Digital Economy; Prof. Roshan Ragel, Senior Lecturer in Computer Engineering, University of Peradeniya; and Sanjay Shah, Founder and CEO, Elevante AI, who together will add perspectives from government, academia, and industry. Vinod Hirdaramani, Chairman of Hirdaramani Group and Deputy Vice Chairperson of The Ceylon Chamber of Commerce, will moderate the session.

The discussion will look at the opportunities and challenges presented by emerging technologies, including artificial intelligence and automation, and their potential to transform industries and create new areas of economic activity. It will also consider the role of digitalisation in improving public services and supporting entrepreneurship.

Education and skills development will be another important part of the conversation, particularly as the demand for new capabilities grows alongside technological change. The panel will consider how Sri Lanka can prepare its workforce for future jobs while developing an environment that supports innovation and technology-led businesses.

The session will also look beyond technology itself to the wider conditions needed for a digital economy to grow. Policy, investment, infrastructure, education and collaboration between government, industry and academia will all have a role in determining how effectively Sri Lanka can turn technological change into economic opportunity.

Held under the theme “Positioning Sri Lanka in a Changing Global Economy: Resilience, Reform, and the Future of Economic Policy,” SLEIS 2026 will offer perspectives from senior policymakers, business leaders, investors and international experts over two days of discussions on Sri Lanka’s economic direction, investment opportunities and the reforms needed to support future growth.

Registrations are now open at https://sleis.chamber.lk/. For more information, contact Alikie on 011 558 8805 (alikie@chamber.lk) or Shanuka on 0701082541 (events.division@chamber.lk).