Recording another quarter of sound financial performance in a challenging economic backdrop, diversified conglomerate Sunshine Holdings (CSE: SUN) posted consolidated revenue of Rs. 24.9 billion for the six months ending 30 September 2022 (1HFY23), an increase of 57.7% YoY compared to the corresponding period of last year.
Profit after tax (PAT) for the period in review rose to Rs. 3.2 billion, an increase of 28.2% YoY, on the back of the profit arising from the improved performance in Healthcare, Consumer Goods and Agribusiness. The gross profit improved by Rs. 1.9 billion, up 36.3% YoY compared to the previous year, in line with the Group’s revenue growth. Gross profit margin for the period in review stood at 29.4%, which is a contraction of 463 basis points against the same period last year. Profits attributable to equity shareholders (PATMI) closed at Rs. 1.9 billion for 1HFY23, an increase of 60.0% YoY.
The Group’s Healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 46.6% of total revenue. In comparison, Consumer and Agribusiness sectors of the Group contributed 34.4% and 18.4% respectively of the total revenue. In April 2022, Sunshine Tea (Pvt) Ltd, which is a tea export business, was acquired by the Group and its performance is consolidated under Consumer Goods sector w.e.f. 1st April 2022.
Commenting on the performance, Sunshine Holdings Chairman Amal Cabraal said “The Group faced multiple challenges across all sectors from the fall out of the macroeconomic issues faced by the country. However, incisive sales initiatives, robust cost management and process reengineering backed by numerous digital initiatives enabled Sunshine to record a healthy performance in 1HFY23. The resilience and adaptability displayed by all the sector and center teams in delivering these results are a matter of pride and confidence. Whilst the continuing economic challenges and shrinking real disposable income will be barriers to overcome, the Group remains optimistic that the initiatives in place will enable the delivery of sound results in the forthcoming periods.”
Group’s Healthcare segment generated Rs. 11.6 billion in turnover during 1HFY23, representing a significant growth of 35.9% YoY on the back of improved performance in Pharmaceutical and Medical Devices segments. Lina, the Pharma manufacturing business, experienced revenue growth mainly due to price revisions together with the revenue earned from Metered Dose Inhaler (MDI) sales to the government. The first MDI sale was made in the month of July 2022 marking the commencement of commercial operations in Lina Spiro. The Healthcare sector PAT increased by 51.7% YoY.
Recording a 128.4% increase in revenue compared to the corresponding period of last year, the Consumer Goods Sector recorded a revenue close to Rs. 8.6 billion. Export business accounts for 46.9% of the sector’s revenue. Excluding the new addition of Sunshine Tea, revenue growth stood at 21.3%. The PAT of the sector increased by Rs. 383 million compared to the same period last year.
The Group’s agribusiness sector, represented by Watawala Plantations PLC (WATA) and Watawala Dairy Limited (WDL), saw a revenue increase of 34.4% YoY to Rs. 4.6 billion. The EBIT margin contracted due to reduction in crop volumes YoY and increased cost of bought crop. PAT of the Agri sector closed at Rs. 1.9 billion for 1HFY23, up by Rs. 45 million compared to the same period last year.
ILO together with EFC launches pilot project to address employee grievances at the workplace
Five companies volunteer to participate in the project
By Sanath Nanayakkare
Grievance handling in Human Resource Management (HRM) refers to the process by which employee complaints, concerns, or disputes are formally addressed and resolved. The goal is to provide a structured channel for employees to express their concerns or report issues they are facing in the workplace for the benefit of the company, the management and the employees.
True to those values, the International Labour Organization (ILO) recently invited the Employers’ Federation of Ceylon (EFC) to initiate a pilot project to launch Grievance Handling Guidelines that were formulated through several workshops conducted in 2019 in consultation with ILO constituents.
Giriulla Mills Ltd, HNB Assurance Ltd, HNB General Insurance Ltd, Cambio Software Engineering and Taj Bentota Resort and Spa, volunteered to participate in this project. They represented the manufacturing, finance, IT, and hospitality sectors respectively. The pilot project was formally launched on 20th September 2022.
EFC’s team of trainers visited these selected companies and engaged in discussions with their management to gain insights into their existing employee grievance handling systems.
They also gathered feedback from employees to assess their satisfaction with present grievance mechanisms. Based on the findings, EFC team developed customised grievance handling policies aligned with each organisation’s culture and specific requirements of each company to ensure practical implementation of the same.
All these grievance policies were designed in adherence to the Guidelines on Grievance Handling which were established for Sri Lanka in 2019 through workshops conducted by the ILO.
Following the development of these policies, four training sessions were conducted for the management teams of the participating companies. During these training sessions, the policies were presented in detail. The sessions also aimed to provide a comprehensive understanding of what constitutes employee grievances, the importance of addressing them promptly and the potential consequences if grievances are left unattended.
In addition to policy dissemination, the training sessions also focused on equipping managers with the necessary skills to effectively handle employee grievances. This included discussions on communication strategies, conflict resolution techniques, and the importance of empathy and active listening when addressing employee concerns.
Rage Coffee forays into Sri Lanka market
The brand has secured investment from Virat Kohli
Rage Coffee, an internationally acclaimed coffee brand, was launched in Sri Lanka recently.
Originating in 2018 from the visionary mind of Bharat Sethi, Rage Coffee emerged to address the dearth of high-quality artisanal coffee in the Indian market. It fills the void with a unique plant-based, vitamin-enriched coffee selection.
A notable milestone for Rage Coffee was securing investment from Virat Kohli during its initial seed round. Kohli, known for his discerning brand choices, not only invested but also became the official brand ambassador, accentuating the brand’s quality.
Sourcing beans from Ethiopia and India, Rage crystallizes them, preserving a distinct nutty and earthy flavor profile. The brand’s proprietary blend, boasting 100% plant-based ingredients, eliminates harmful waste elements found in other leading coffees, prioritizing nutritional value. Each serving packs an impressive 120mg of caffeine, offering a superior boost to kickstart one’s day compared to standard brands.
NSB Nawala branch relocated at spacious new premises
NSB Nawala Branch which was relocated recently, was first established in the year 2003 and had been renowned for its customer service over a span of two decades.
Anoma Gomes, Deputy General Manager of National Savings Bank graced the occasion of the opening of the newly relocated Nawala Branch at the new address No. 221, Nawala Road, Nugegoda.
Furthermore, the former General Manager / CEO of NSB, Eastman Narangoda, Dr. Anura Wickramasinghe of the Open University of Sri Lanka, Dr. Hector Jayawardane graced the occasion as special invitees.
Higher Management of NSB and invited guests including Asst. General Manager – Nalika Wijesinghe, Regional Manager – Charini Ekanayake, Branch Manager of Nawala Branch – Chaminda Piyathilake also attended this event.
Equipped with ATM facilities and state-of-the-art banking facilities the relocated NSB Nawala Branch is housed in a spacious premises to deliver a supreme customer service catering to all the financial requirements of the public.
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