Sunshine Holdings posts Rs 314m PAT

Sunshine Holdings PLC reported consolidated revenues of Rs. 4.2 bn for the quarter ended June 30, 2015 (1QFY16), up 4.9% YoY. PATMI grew 10.8% YoY to stand at Rs. 162m for 1QFY16, despite a 3.7% YoY contraction in PAT to Rs. 314m due to weak performance in the agri sector.

All segments, except for agri contributed towards top-line growth during 1QFY16. Agri, still the biggest contributor to group revenue (40.3% of group revenue), contracted 10.4% YoY, with Healthcare close behind (39.8% of group revenue) grew17.5% YoY.

Revenue contribution from FMCG increased to 16.4% of total in 1QFY16, against 14.8% during same quarter last year and grew 16.3% YoY.

For 1QFY16, PAT amounted to Rs. 314m down 3.7% YoY, but Profit After Tax and Minority Interest (PATMI) was up10.8% YoY to Rs. 162m.

PAT from Agri and FMCG sectors has a lower impact on the group PATMI due to lower effective holding.

Healthcare still remains the largest contributor to PATMI in 1QFY16 with Rs. 85m, which represents 52.4% of total PATMI.

Net Asset Value per share increased to Rs. 40.44 as at end 1QFY16, compared to Rs. 39.24 at the beginning of the year (FY15).

Healthcare revenue for 1QFY16 grew 17.5% YoY, exceeding management expectations and stood at Rs. 1.7 bn. This represents 39.8% of Group turnover.

The FMCG sector reported revenues of Rs. 685m in 1QFY16, up 16.3% YoY, on the back of both volume and price growth, and the sector accounts for 16.4% of group revenue for the period.

The branded tea business within FMCG sold 703 tonnes of branded tea, up 8.5% YoY, primarily driven by their largest brand 'Watawala Tea' - which is the number one selling tea brand in Sri Lanka.

The agri sector represented by Watawala Plantations PLC (WATA) saw its revenue contract by 10.4% YoY to Rs. 1.7 bn, on the back of an 18.8% YoY contraction in Tea revenue, despite Palm Oil sub sector reporting an increase of 24.4% YoY for 1QFY16.

This performance is in-line with management expectations for the segment with the printed sheet business ramping up its contribution to revenue, despite lull sales for both the tea and confectionery industry. PAT amounted to Rs. 6m in 1QFY16 compared to Rs. 391k in 1QFY15 as a result of improved capacity use.

Revenue for the Renewable energy division amounted to Rs. 32m in 1QFY16, up 110.3% YoY from Rs. 15m during same quarter last year, due to heavy inter-monsoon rainfall and improved plant and grid stability. The mini-hydro plant, which is in its second year of operation, made PAT of Rs. 13m for 1QFY16, compared to a loss of Rs. 6m in the same quarter last year.