Sunshine Holdings achieves above average growth

Diversified conglomerate Sunshine Holdings PLC posted a consolidated revenue of Rs. 16.3 billion in FY15, an improvement of 11.1% year-on-year (YoY). Key business segments, particularly Healthcare and Agribusiness, grew above industry averages despite challenging conditions.

There was growth across the board; fast moving consumer goods (FMCG), healthcare and agribusiness revenues grew at 20.4%, 10.2% and 9.6% YoY; group profit after tax (PAT), however, was affected partially by goodwill written off (Rs. 62 million) and declined by 10.4% to Rs. 1,047 million for the financial year ended March 31, 2015.

Net asset value per share of the company increased to Rs. 39.23, compared to Rs. 36.23 at the beginning of the year (FY14), Profit to equity holders (PATMI) was down 21.1% YoY to Rs. 542 million at group level.

The EBIT (earnings before interest and tax) margin experienced a marginal contraction, to 8.7% in FY15 from 10.9% in FY14; improved margins in the FMCG segment were offset by a contraction of margins in the Agribusiness and Healthcare sectors because of unfavourable market conditions.

"Despite the challenging conditions in many of our key segments, we were successful in increasing revenue growth above industry averages; this healthy financial performance underscores Sunshine Holdings' solid fundamentals," Sunshine Holdings PLC Group Managing Director, Vish Govindasamy said.

"The company's visionary strategic initiatives are continuing to pay dividends in boosting long-term growth - such as the diversification into palm oil - and we remain optimistic about future prospects, despite potential future challenges," he said.

"As a group we are primarily focused on long term performance. Sunshine Holdings takes much satisfaction from achieving these results, which indicate steady growth in the different business segments," Sunshine Holdings PLC Chairman, Munir Shaikh said.

"Being an entity which aspires to be the most admired conglomerate in Sri Lanka, we take greater pride in having achieved this performance by our uncompromising adherence to best business practices and ethics," he said.

Timely strategic diversification to Palm Oil, which recorded a PAT of Rs. 780 million for FY 15, continued to boost the Agri sector and more than compensated for losses in both tea and rubber, despite a global decline net selling average (NSA) of Palm Oil, in FY15, in line with the drop in global crude oil prices.