Sri Lanka’s Sunshine Holdings net up 85-pct in June

ECONOMYNEXT – Sri Lanka’s Sunshine Holdings Plc, said its profit grew 85 percent from a year earlier to 1.04 billion rupees in the June 2022 quarter helped by the healthcare and consumer sectors.

The group reported earnings of 2.12 rupees for the quarter.

Gross profits rose 41 percent to 3.5 billion rupees in the quarter, with revenues up 59 percent to 11.7 billion rupees and cost of sales up 69 percent to 8.2 billion rupees.

Net finance costs fell 131 percent to 12.6 million rupees.

In the six months to June healthcare sector revenues rose 45.9 percent to 5.8 billion rupees and made after tax profits of 432 million rupees, Group Managing Director Vish Govindasamy said.

“Pharmaceuticals segment witnessed panic buying for chronic care products during 1QFY23 and the demand for wellness and covid related products were challenged,” Govindasamy said.

“Medical devices segment had revenue growth owing to price increases despite the pressure on volume due to lower occupancies at Hospitals and reduced demand for lab tests.”

Its Healthguard retail chain had been affected by footfalls due to a drop in demand for wellness products as consumers bought only essentials.

Consumer goods revenues rose 109 percent to 2.9 billion rupees. After tax profits rose 384 percent to 235 million rupees.

“The local business faced challenges mainly due to disruption in distribution owing to social unrest and fuel shortages,” he said.

“Tea category experienced a volume contraction in 1QFY23 compared to 1QFY22 While the Confectionery category revenue grew significantly, supported by price increases.”

Agribusiness after tax profits had risen by 734 million.

“The EBIT decreased by 27 million (3.5% contraction YoY) owing to increased cost of bought crop and reduction in crop volumes YoY. Reduction in the crop is due to the unavailability of fertilizer for the last two years.”

The dairy business recorded a net loss of LKR 40 million in 1QFY23 compared to a net profit of 18 million during the same quarter last year.

“Net loss in dairy is mainly stemming from increased feed cost, despite the increase in farm gate price.”


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