Friday, February 8, 2013

Sunshine Holdings 3Q profit up 18% to Rs. 453 m

Sunshine Holdings Plc (SUN) announced another quarter of earnings and profitability growth for the Quarter ending 31 December 2012. The company has delivered broad-based growth and market expansion, in an environment that continues to be challenging.

“Our core businesses continue their consistency in winning at the marketplace by remaining sharply focused on the needs of our large consumer base while striving for further growth and diversification,” said Vish Govindasamy, Group Managing Director of Sunshine Holdings.

 For Q3 2012/13, Group revenue was Rs. 3.7 billion, a year-on-year revenue growth of 31% and a sequential growth of 14% against Q2.The PAT was Rs. 453 million, a healthy 85% increase y-o-y and a 88% increase against trailing quarter.


 Healthcare, one of the largest contributors to the group, posted revenue of Rs. 1.3 billion and PAT of Rs. 110 million for Q3 2012/13.  The challenging environment meant that the company registered a 6% PAT increase y-o-y despite a revenue increase of 12%over the same period last year.

 SBL, the company’s fully owned healthcare subsidiary, is present in five categories –

Pharmaceuticals, Surgicals, Diagnostics, Wellness/OTC, and Retail. The Pharmaceutical category continues to be the largest contributor, with growth in Diagnostics and new products launched by the Wellness category also driving the top line. In the Retail category, the Healthguard Pharmacy chain with over 20 stores has shown increased customer footfall in their new stores.


 The Group’s Agri Business, its largest revenue contributor, continues the momentum from the previous quarter registering another good earnings, paying rich dividends to the company’s multi-crop diversification strategy undertaken a few years back.

 Posting revenue of Rs. 1.78 billion for the quarter, a 29% growth against trailing quarter and a PAT of Rs. 287million, a 54% growth Q-o-Q, the diversified Agri Business is a consistent topline contributor to the group.

 Palm oil continues to be the main stay of the business, with tea having a turn-around year, driven largely by quality improvements in the field, resulting in increased production.

 Year-to-date for the nine months ending 31 December 2012, Watawala Plantations has posted a revenue of Rs. 4.5 billion (31% increase over the same period last year) and a PAT of Rs. 630 million, which is a significant turnaround against a loss of Rs. 20 million for the same period last year.


 The FMCG segment saw an increase in revenue of 17% Y-o-Y to post Rs. 529 million (against Rs. 452 million for Q3 2011/12), but PBT decreased 29% to Rs. 68 million against same period last year (y-o-y), mainly due to a rise in raw materials.

 The tea category was again the largest contributor with a revenue and volume growth in both Watawala (popular brand) and Zesta (premium brand), while Oliate (edible oil segment) came under some pressure, which impacted its profitability growth.

 Year-to-date for the nine months ending 31 December 2012, revenue is up 13% to Rs. 1.4 billion against the same period last year, while PBT showed a marginal decrease down 4% (y-o-y) largely due to the increase in raw material cost for the current year.


 For the first time in the group’s history, the Energy segment recorded a PAT of Rs. 8 million for the quarter, recording a strong revenue growth.  Higher than expected wet days/rainfall have contributed significantly to the increase and the company is confident in its outlook for the next quarter.

 SUN revenue for the nine months ended 31 December 2012 was Rs. 10.1 billion while posting a PAT of Rs. 997 million.  This is a 24% and a 196% increase over the same period a year ago.

 Profits attributable to equity holders of Sunshine Holdings reached Rs. 487 million from Rs. 183 million compared to the previous period, as it continuously adds value to its shareholders.

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