Sunshine Holdings PLC, a diversified group comprising Watawala Plantations, Swiss Biogenics and companies in packaging, travel and power generation, recorded a 52 percent growth in profits driven by strong performances by companies in plantations and healthcare in the first quarter of 2010-11.
The Group achieved Revenue of Rs. 2.5 billion for the three months ending 30th June, a 25 percent growth over the corresponding quarter of last year, with Plantations recording Rs 1.44 billion and healthcare Rs 992.6 million, reflecting growths of 27 per cent and 17 per cent respectively.
Group Profit before Tax at Rs.287.2 million was an increase of 92 per cent in the quarter reviewed, while profit attributable to the shareholders of Sunshine Holdings PLC, increased by a noteworthy 52 percent to Rs 116.3 million, the company said in a filing with the Colombo Stock Exchange.
Bottom line growth was driven by Healthcare, which improved its profit before tax by 32 percent and its post-tax profit by 31 percent, and Plantations whose pre-tax profit was up 280 per cent and post-tax profit up 296 percent.
Exceptional Income of Rs 72 million was realized by the Plantation Sector in the quarter under review due to the separation of its FMCG business into a fully owned subsidiary, the company said.
Elaborating on this performance, Sunshine Holdings Chairman Rienzie T. Wijetilleke said: "The Group performed impressively during the quarter under review. In the Healthcare sector, our presence in all major sectors namely, Pharmaceuticals, Surgical and Medical Devices, Diagnostics and Nutraceuticals, enabled us to hold the market share overall. Significant growth was achieved through gross margin improvement, tight cost controls and effective management of working capital."
He said the performance of the Plantation sector was driven by higher tea production which increased by 16 per cent over that of the corresponding quarter and better prices. "Palm Oil and the FMCG business in this sector have also contributed to both top line and bottom line growth and we foresee further improvements into the latter part of the year," Wijetilleke said.
The Group’s Packaging sector also posted good growth with turnover increasing by 161 per cent to Rs 58.7 Million. The growth in revenue and lower finance costs contributed to the sector’s profitability, and timely investment in equipment that has served to reduce energy costs and increase throughput should further improve returns in the quarters ahead, Wijetilleke said.
Looking ahead, he disclosed that "Overall, the Group anticipates a sustained increase in business volumes across all key sectors and expects sharp comparative earnings growth from the Plantation and Health sectors over the next nine months."
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. 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 Messrs Rienzie T. Wijetilleke (Chairman), G. Sathasivam, Vish Govindasamy (Group Managing Director), Shyam Sathasivam, N. B. Weerasekera, Sarath Piyaratne, A. Hollingsworth, Munir Shaikh, U.L.Kadurugamuwa and Bhandula Hulangamuwa.
source - www.island.lk
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