Diversified Sri Lankan conglomerate Sunshine Holdings PLC, fueled by strong growth in its healthcare sector, reported notable growth in bottom-line performances during the year ending March 2020.

During this period, the group posted consolidated revenue of Rs. 20.8 billion, delivering a 60 per cent Year-on-Year (YoY) increase in Profit After Tax (PAT), the company said in a media release on Thursday.

The group's top-line performance saw a decline in growth by 8 per cent YOY, mainly due to the sale of the tea plantation business represented by Hatton Plantations PLC during the first quarter as well as the revenue contraction of group's consumer goods sector.

Healthcare and consumer business together contributed 78 per cent to Sunshine's top-line, while agribusiness sectors of the group contributed 18 per cent of the total revenue.

During the month of May 2020, the group boosted its stake in the branded tea company, Watawala Tea Ceylon Ltd (WTCL) to 100 per cent, which effectively increased its exposure to the consumer sector. It reduced the group interest in oil palm and dairy, by transferring the stake in Watawala Plantations PLC to a new joint venture called Sunshine Wilmar (Pvt) Ltd, the release said.

PAT for the period in review rose to Rs. 1.8 billion, which include a one-off gain from the sale of Hatton Plantations PLC, which amounted to Rs. 341 million. The strong positive results were carried through to the group's PAT and Minority Interest (PATMI) which grew by 102.4 per cent YoY to Rs. 1.1 billion. Healthcare and agribusiness sectors were significant contributors to PATMI, accounting for 44 per cent and 34 per cent, respectively.

Commenting about the group's performance, Sunshine Holdings Group Managing Director, Vish Govindsamy stated, 'The financial year under review experienced two unexpected events-the Easter bombings and the country-wide lockdown due to COVID-19 pandemic-where the combined effect caused tremendous impact on every sector in the economy. The novel coronavirus especially, which is the cause of the most affected economic headwind in history, was a true test for organisations like us to showcase resilience, responsiveness and readiness in such a crisis. However, we are pleased to note that as a group, we displayed a resilient and entrepreneurial spirit in the face of such difficulties, continuing our valuable contribution to the economy by ensuring undisrupted services to all our stakeholders by maintaining highest standards of safety and convenience.'

As the largest contributor to group revenue, Sunshine Healthcare grew its revenue by 19.7 per cent YoY to Rs. 11.2 billion on the back of both volume and price growth in the pharma and medical devices sub-sectors.

'In healthcare, we expect strong growth in the first quarter, especially in medical devices and pharma sub-divisions. We are closely monitoring the changes in the exchange rate, which is sensitive to our margins. The sector will continue to focus on improving the product range and service quality. During the lockdown, Healthguard's operations were disrupted, but we were able to identify several opportunities in improving its digital capabilities. During the first quarter, we will look to improve Healthguard's online business further,' added Mr. Govindasamy.

He said the consumer business would continue to invest behind its brands to scale the domestic businesses. 'The consumer business will have a challenging first quarter due to the COVID-19 pandemic, especially due to disruption in logistics. The company would continue to invest behind its brands to scale the domestic businesses. We also expect a slower recovery in the gift boutique business, which is predominantly dependent on tourism.'

© Pakistan Press International, source Asianet-Pakistan