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Sunshine Holdings delivers robust performance in 1H amidst macroeconomic challenges

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Sunshine Holdings Chairman Amal Cabraal

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.”

Healthcare

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.

Consumer Goods

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.

Agribusiness

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.



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Ceylinco Life agent among three global finalists for award

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Ceylinco Life’s Ambalantota branch agent AIP Manjula

Ceylinco Life’s Ambalantota branch agent AIP Manjula has been named one of three global finalists for the prestigious Insurance Agent of the Year award at the 11th Asia Trusted Life Agents & Advisers Awards (ATLAA) 2026.

The recognition places a Sri Lankan insurance professional among the finalists in a regional field spanning South Asia, Southeast Asia, East Asia and the wider Asia-Pacific region.

Ceylinco Life said the achievement reflected the calibre and customer-focused approach of its agency force, while recognising Manjula’s professionalism and commitment to policyholders.

The award evaluates insurance agents on criteria extending beyond sales performance, including ethical conduct, client service, policy persistency, digital adoption, innovative practices and contributions to the insurance industry and community.

The awards are organised by Asia Advisers Network and Asia Insurance Review, with LIMRA as co-organiser. An independent judging and balloting process is monitored by KPMG as the official scrutineer. The judging panel comprises senior insurance executives, association presidents and industry experts from across the Asia-Pacific region.

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CEAT Kelani retains AA+ rating for sixth year

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CEAT Kelani Holdings (CKH) has retained its National Long-Term Rating of ‘AA+(lka)’ with a Stable Outlook from Fitch Ratings for the sixth consecutive year, reflecting the company’s financial resilience and leading position in Sri Lanka’s pneumatic tyre market.

The ‘AA+(lka)’ rating, the second-highest on Fitch’s national scale, indicates a very strong capacity to meet financial commitments.

Fitch said CKH’s established market leadership and resilient financial profile remained key strengths, while noting its exposure to price-sensitive, cyclical and highly competitive markets.

The Stable Outlook reflects expectations that the company will maintain its market position despite rising input costs and increasing competition from imported tyres, while preserving adequate credit metrics during periods of weaker earnings and higher investment.

Fitch expects CKH’s established brand, extensive dealer network and adaptive pricing strategies to support its market position. Planned production facility upgrades are also expected to improve product quality, particularly in the radial tyre segment.

The rating agency expects near-term pressure on margins from higher raw material and energy costs but said the company’s low leverage and sound liquidity would provide a cushion.

CKH Chairman Chanaka De Silva said the rating reinforced the company’s focus on disciplined financial management, operational adaptability and long-term investment.

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Commercial Bank leads nationwide aquatic clean-up drive

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Sanath Manatunge, Managing Director/CEO of Commercial Bank and some of the Bank’s staff participating in the coastal cleanup programme

Commercial Bank of Ceylon mobilised employees, customers, volunteers and community members for a nationwide coastal and aquatic clean-up campaign across 20 locations on September 19 to mark International Coastal Cleanup Day 2026.

Conducted under the bank’s sustainability platform, themed ‘Forward Together for a Cleaner Future’, the initiative covered 16 coastal locations and four inland waterways, bringing together stakeholders for a coordinated environmental conservation effort.

The flagship programme was held at Mount Lavinia Beach, with additional activities at Wellawatte and Galle Face beaches. Similar initiatives were conducted by the bank’s regional offices at locations including Kalutara, Negombo, Trincomalee, Batticaloa, Puttalam, Jaffna, Galle, Dondra, Tangalle and along the Mahaweli River.

Employees, management, Future Force volunteers, customers and their families participated alongside the Marine Environment Protection Authority (MEPA), United Nations Global Compact Network Sri Lanka, government and local authorities, environmental organisations and community members.

The bank said the initiative reflected its commitment to water stewardship after adopting Sustainable Development Goal 6 — Clean Water and Sanitation — as a priority goal in 2025.

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