Diversified conglomerate Sunshine Holdings (CSE: SUN) reported a consolidated revenue of Rs. 38.6 billion for the nine months ending 31 December 2022 (9MFY23), an increase of 60% YoY compared to the corresponding period of last year.
Profit after tax (PAT) for the period in review rose to Rs. 3.8 billion, an increase of 5.6% YoY, despite contraction in volumes and higher interest cost. The gross profit amounted to Rs. 10.2 billion, up 25.3% YoY compared to the previous year, in line with the Group’s revenue growth. Gross profit margin for the period in review stood at 26.4%, which is a contraction of 730 basis points against the same period last year. Profit attributable to equity shareholders (PATMI) was Rs. 2.2 billion for 9MFY23, an increase of 21.2% YoY.
The Group’s Healthcare business emerged as the largest contributor to Sunshine’s top-line performance, accounting for 45.7% of total revenue. Consumer and Agribusiness sectors of the Group contributed 36.5% and 17.2% 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, “Amidst tough market conditions, the notable growth in revenue is attributed to strong contributions from all our business sectors on the back of well executed strategies. In the short to medium term, we expect the operating environment to remain challenging. Unprecedentedly high finance costs, soaring inflation along with significantly increased tax rates impacting disposable income and dampening consumption and key export markets experiencing recessionary conditions are some of the key challenges that need to be overcome. The effects of the economic crisis and consequent corrective measures are leading to talent migration and talent retention has become increasingly challenging. With sharper and more agile planning and operational excellence across all sectors, the Group will remain focused on adding value to its local customers and consumers and leverage its recently acquired export business to deliver growth outside Sri Lanka.”
Group’s Healthcare segment generated Rs. 17.6 billion in turnover during 9MFY23, representing a significant growth of 36.3% YoY on the back of improved performance in Pharmaceutical and Medical Devices segments. Lina, the Pharma manufacturing business of the Group, 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 decreased by 2.5% YoY.
Recording a 133.8% increase in revenue compared to the corresponding period of last year, the Consumer Goods Sector recorded a revenue close to Rs. 14.1 billion. Excluding the new addition of Sunshine Tea, revenue growth stood at 30.7%. Both tea and confectionary categories have seen a noteworthy increase in revenue during the period in review. The PAT of the sector amounted to Rs. 498 million (up 115.7% YoY) 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 32.1% YoY to Rs. 6.6 billion. EBIT margin for 9MFY23 stood at 41.5%, against 56.2%in the corresponding period last year, owing to increased cost of bought crop and reduction in crop volumes by 6.32% YoY. PAT of the Agri sector closed at Rs. 2.6 billion for 9MFY23, down 2.8% YoY compared to the same period last year.
About Sunshine Holdings
Sunshine Holdings PLC is a diversified conglomerate contributing to ‘nation-building’ by creating value in vital sectors of the Sri Lankan economy – healthcare, consumer goods and agribusiness. Established in 1967, the group is now home to leading Sri Lankan brands such as Zesta Tea, Watawala Tea, Ran Kahata, Daintee Confectionary and Healthguard Pharmacy, with over 2,300 employees and revenue of Rs. 39 billion YTD 2022/23. The business units comprise of Sunshine Healthcare Lanka, Sunshine Consumer Lanka and Watawala Plantations PLC, which are leaders in their respective sectors and many of them certified as a “Great Place to Work” in 2021.
Exterminators PLC certified as great place to work
Exterminators PLC announces that it has been certified as a Great Place to Work for the second year in a row. This achievement reaffirms our commitment to creating an environment that fosters learning, development, and success for our staff members. The certification was awarded after an independent audit and certification process conducted by the renowned organisation Great Place to Work (GPTW), which evaluated our company across various focus areas. Exterminators PLC excelled in the Trust Index, scoring high points in all focus areas during the certification process.
“The challenges we faced over the past twelve months were unprecedented. We are proud of our coworkers, who kept our business operating without interruption by working collaboratively and courageously and leaning on our collective creativity, innovation, and passion. Our slogan was ‘How can we’ keep the promise we made? and we constantly innovated to get the job done, no matter how difficult it was.
We are grateful to our coworkers who collaborated with us during these most challenging times and for their pure commitment and loyalty towards Exterminators PLC, which kept us moving forward despite unprecedented obstacles.” Marlon Ferreira the Managing Director said.
SLT-MOBITEL mTunes introduces ‘Be a Millionaire’ promo
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With a vast collection of songs on the mTunes platform, the ‘Be a Millionaire’ promo offers users the opportunity to connect with their hearts’ content and win big cash prizes. From September 1st to November 30th, 2023, the ‘Be a Millionaire’ promo on mTunes promises incredible prizes for lucky participants. The grand prize is an amazing Rupees One million (Rs. 1,000,000) with additional rewards of Rs. 100,000 for the second winner and Rs. 50,000 for the third place. But the path to wealth does not end; seven more lucky winners will receive Rs. 10,000 each, and every week, there will be twelve lucky winners of Rs. 10,000 each in cash prizes.
Participating in the promotion is easy. Existing and new CRBT users have the chance to win these fantastic prizes, including becoming millionaires, by simply activating more mTunes during the promotional period. With multiple cash prizes available, there are numerous opportunities to win every week. The ‘Be a Millionaire’ promotion is a golden opportunity to make dreams come true.
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For more information, contact mTunes at 777 or visit mtunes.mobitel.lk
Lanka can build strong tourism ‘eco-brand’: UN official
By NETHMI RAJAWASAM
ECONOMYNEXT –Sri Lanka can build an ‘eco-brand’ catering especially to younger tourists who feel strongly about the environment, United Nations Resident Representative to Sri Lanka, Azusa Kobota said.
About 70 percent of global travellers prioritise sustainability in their holiday choices, marking a ten percent increase from 2021, while around 30 percent of travellers feel guilty about flying, due to carbon emissions, she said.
“As the world embraces green thinking during this time of economic recovery efforts, the objective of the tourism sector cannot simply be about increasing the number of inbound tourists,” Kobota said at an event marking World Tourism Day in Colombo.
“It has to be about enhancing their experience through green lenses, by implementing a responsible, eco-conscious paradigm for the sector and building a stronger eco-brand around the sustainable agenda for Sri Lanka,”
“This is no longer about reducing the trade offs between growing the industry and protecting the environment.
“We must see nature as our asset and solutions to be obtained for the exponential growth for our future generations.”
The sustainable tourism market is estimated to have earned 195 billion US dollars in 2022, and is expected to reach about 656 billion US dollars in 2032, she said.
“Tourists, particularly the younger generations from gen X,Y,Z are deeply, deeply conscious about the long term choices of their actions, and the adverse impact of tourists on the environment.
“Statistics show that a significant proportion of global travellers, about 30 percent, feel guilty about flying due to the environmental impact and 22 percent say they actively prefer public transport and bicycle rental options, over renting a car.”
Sri Lanka welcomed one million tourists by September 26 and is expecting more that 1.5 million tourists by the end of the year.
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