Impressive pre-tax profit growth by its plantation sector business supported by a solid performance from healthcare has enabled Sunshine Holdings PLC to post characteristically bright results for the year ending 31 March 2010.
The Group, which includes Watawala Plantations PLC and Swiss Biogenics Limited, has reported that turnover increased by a healthy 27.4 per cent to Rs. 9.4 billion, with healthcare accounting for Rs. 3.6 billion. Profit before tax exceeded Rs. 834 million, an increase of 88 per cent over last year, with pre-tax profit from plantations growing an exponential 408 per cent and healthcare up 26 per cent.
Profit after tax at Rs. 678 million reflected a growth of 115 per cent while profit attributable to shareholders of the parent company grew by a noteworthy 103 per cent to Rs. 348 million in the year reviewed.
Commenting on these results, Sunshine Holdings Chairman Rienzie T. Wijetilleke said: "The Group performed impressively during the year under review. The conclusion of the longstanding conflict in the country in May 2009 brought with it a sense of optimism and confidence to the country and the Sri Lankan economy thus recorded a turnaround. The negative sentiment that was prevalent in most global economies was overridden by strong positive domestic factors in Sri Lanka."
Elaborating on segmental performances, he disclosed that Healthcare achieved significant growth through gross margin improvement, tight cost control and effective management of working capital. "Our presence in all major segments in healthcare products, pharmaceuticals, surgical and medical devices, diagnostics and nutraceuticals enabled us to hold our overall market share along with the introduction of new products in all segments," Wijetilleke reported.
In the plantations segment, overall performance was exceptional and saw a significant improvement from third quarter to the year end, he said. Profits came mainly from the palm oil and retail marketing segment, and the tea segment reduced its losses of Rs. 262 million in the previous year to a loss of Rs. 112.7 million for the 12 months reviewed.
Of the Group's other core businesses, metal packaging incurred a marginal loss of Rs. 2 million, while the travel sector improved significantly, increasing turnover by 11 per cent and achieving a profit of Rs 1.3 million.
Wijetilleke also noted that the Group's renewed focus on operational efficiencies in all group companies had delivered impressive results with group expenses having increased by only 11.7 per cent in the year reviewed.
Looking ahead, Wijetilleke said: "We will continue to build market share in the healthcare sector and hope to add new agencies to increase volumes. In the plantation sector, our investments in agricultural productivity and the FMCG segment will help to maintain profitability. The group is also exploring opportunities in the energy sector, tourism sector and the health sectors to further diversify the businesses in which we operate to enhance value addition to shareholders."
A group focused on expansion locally and internationally, Sunshine Holdings comprises of Watawala Plantations, Swiss Biogenics, Sunshine Packaging, Sunshine Travels and Watawala Marketing. The Group is associated with Tata Tea Ltd, and its subsidiary the Tetley Group, and has also extended its interests into telecommunications with the acquisition of a 10 per cent stake in Tata Communications Lanka Ltd., a subsidiary of Tata Communications Ltd., India (TCL), which is owned by the Tata Group.
Sunshine Holdings also owns the household-name tea brands Zesta and Watawala Kahata, which are marketed locally and in global markets by Watawala Plantations.
The Board of Directors of Sunshine Holdings Plc comprises Rienzie T. Wijetilleke (Chairman), G. Sathasivam, Vish Govindasamy (Group Managing Director), Shyam Sathasivam, N. B. Weerasekera, Sarath Piyaratne, A. Hollingsworth and Bhandula Hulangamuwa.
source - www.dailymirror.lk
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