* Net profits up 38% to Rs. 1bn, on 14% revenue growth to Rs. 10.7bn
* Revenue from tea up 9.2%, rubber up 85%, healthcare up 19.9%
June 2, 2011, 12:00 pm
Sunshine Holdings (Sun) recorded its highest posted results for the recently concluded financial year (ending March 31,2 011) with net profits up 38 percent year-on-year to Rs. 1 billion on strong performances from its plantations and healthcare segments.
Sun’s group revenue for the period increased 14 percent to Rs. 10.7 billion supported by the plantation and healthcare segments, which recorded revenues of Rs. 6.1 billion and Rs. 4.3 billion respectively.
"Sunshine Holdings has a strong foothold in the plantations segment through its subsidiary Watawala plantations. Watawala (WATA) is engaged in the cultivation and manufacture of tea, rubber and palm oil, with the primary revenue generator for the company being tea. The plantations segment has seen a revenue growth of 9.7 percent year-on-year to Rs. 6.1 billion. Tea prices have held steady within the last year resulting in a 9.2 percent increase in tea revenue. However, the key growth category was rubber, recording an 85 percent growth. This is attributed to the strong natural rubber prices that prevailed. With the global demand for natural rubber on the rise, the outlook looks positive for this segment," the company said in a statement.
WATA also has a strong FMCG arm and markets popular brands such as Watawala Kahata and Zesta.
These brands have successfully penetrated the rural areas in the island and has captured significant market share. Increased margins in the FMCG sector has also positively contributed to group gross profit.
The second highest revenue and profit generator for the group is the Healthcare segment.
A 100 percent subsidiary of Sunshine Holdings PLC; SBL’s primary operations are importing and marketing pharmaceuticals and medical equipments used for diagnostics and surgery. The Healthguard pharmacy chain also contributes to this segment’s earnings via the retailing of pharmaceuticals.
Revenue from this segment grew by 19.9 percent to Rs. 4.3 billion and benefitted from increased sales in higher margin products. The recent reduction in import duty in pharmaceutical items and the stable exchange rates that prevailed also contributed positively to the healthcare segment.
The packaging segment weathered a storm through the Dubai financial crisis and recorded a revenue growth of 35.5 percent to Rs. 220 million. Plans are underway to further diversify the production range with a planned capital expenditure exceeding Rs. 50 million to capture the current market which relies in overseas manufactures, Sunshine Holdings said.
"The group also plans to exploit the opportunities presented in the leisure sector through its subsidiary Sunshine Travels, which offers holiday packages and currently operates three tea estate bungalows, under the brand name ‘Mandira’. Sunshine Travels recently entered into a joint venture with Silverneedle hospitality, an integrated Asian Hospitality firm, to develop and manage hotel properties in several parts of the island.
"SUN also has plans underway to contribute to the power and energy sector through Sunshine Power.
Sunshine Power plans to construct 7 MW of power, with a budgeted capital expenditure of Rs. 1.6 billion and later would increase the capacity up to 10 MW. The plants are expected to be completed by 2012/2013 and will contribute to group earnings hence forth. The power plants will be located in the land areas belonging to Watawala Plantations PLC and in other areas with hydro power potentials," it said.
source - www.island.lk
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