SUNSHINE HOLDINGS PLC SUNSHINE HOLDINGS PLC
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED
30 June 2022
02 | SUNSHINE HOLDINGS PLC |
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS |
GROUP MANAGING DIRECTOR'S MESSAGE
Dear Shareholder, The Group recorded a consolidated revenue of LKR
11.7 billion for the quarter ended 30th June 2022, up by LKR 4.4 billion (59.5% YoY).The Group revenue which predominantly includes revenue from Healthcare, Consumer goods and Agribusiness sectors, which contributed 49.8%, 33.2% and 15.8% respectively. In April 2022, Sunshine Tea (Pvt) Ltd which is a tea export business was acquired by the Group and its performance is consolidated under Consumer Goods sector w.e.f. 1st April 2022.
Healthcare sector recorded YoY growth of 45.9% against last year, whilst the Agri sector revenue was up by 31.9%. Consumer goods sector recorded a 109.0% increase in revenue compared to last year, driven by the acquisition of Sunshine Tea (Pvt) Ltd. Organic growth was 33.8%.
Gross profit margin for the quarter stood at 29.7%, which is a decrease of 392 basis points against the corresponding quarter last year. The gross profit improved by LKR 1.0 billion up 40.9% YoY compared to the previous year. The Group EBIT closed at LKR 1,995 million, an increase of 51.2% YoY. Group PAT amounted to LKR 1,599 million in 1QFY23 compared to LKR 1,040 million reported during same quarter last year. Profit attributable to equity shareholders (PATMI) closed at LKR 1,042 million for 1QFY23, an increase of 84.6% YoY.
Healthcare
Healthcare sector recorded a revenue of LKR 5.8 billion during 1QFY23, a significant increase of 45.9%YoY backed by the price increases to reflect the depreciation of the Rupee, despite volume contraction. EBIT for the sector was LKR 743 million.The Healthcare sector Profit After Tax (PAT) increased by 59.9% YoY to LKR 432 million.
Pharmaceuticals segment witnessed panic buying for chronic care products during 1QFY23 and the demand for wellness and covid related products was challenged.
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.
Healthguard retail segment was adversely affected by reduced footfall and gross margin due to consumer focus on essential medicines compared to wellness products. The business recorded a marginal growth in revenue as volumes contracted significantly.
Lina, the Pharma manufacturing business, experienced revenue degrowth mainly due to lower government sales and gross margins declined as a result of the change in product/customer mix coupled with the impact of exchange rate fluctuation.
Consumer Goods
Consumer Goods sector reported a 109.0% YoY increase in revenue to close at LKR 3.9 billion in 1QFY23. Excluding the new addition, revenue growth stood at 7.6%. Gross margins were impacted by the rising cost of raw materials. However, EBIT margin has improved by 404 bps YoY. The PAT of the sector increased by LKR 235 million (384.0% YoY) compared to the same period last year.
The local business faced challenges mainly due to disruption in distribution owing to social unrest and fuel shortages. Tea category experienced a volume contraction in 1QFY23 compared to 1QFY22 While the Confectionery category revenue grew significantly, supported by price increases. Our Consumer brands Zesta, Watawala, Ran Kahata and Daintee continued to maintain and grow market shares.
The export business contribution in terms of revenue and PAT for the quarter stood at LKR 1,885 million and LKR 224 million respectively.
Agribusiness
Agribusiness sector revenue increased by 31.9% YoY during 1QFY23 compared to the corresponding quarter last year. 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 crop is due to the unavailability of fertilizer for the last two years.
PAT of the Agri sector closed at LKR 734 million for 1QFY23, up by LKR 10 million compared to the same quarter last year, while 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 is dairy is mainly stemming from increased feed cost, despite increase in farm gate price.
Outlook
As a Group, we have been facing a multitude of challenges in some of our core sectors and will continue to do so in the short to medium term due to the negative economic impact caused by the political instability and prevalent adverse macroeconomic fundamentals.
Further details of the Group's performance are available on the company website. (https://www.sunshineholdings.lk/investor/financial-reports)
- Govindasamy
Group Managing Director
August 05, 2022 Colombo
SUNSHINE HOLDINGS PLC | 03 | |||||
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | ||||||
CONDENSED STATEMENT OF COMPREHENSIVE INCOME - GROUP | ||||||
Unaudited | Audited | |||||
Quarter ended Quarter ended | Change | Year ended | ||||
30th June | 30th June | 31st March | ||||
2022 | 2021 | 2022 | ||||
LKR | LKR | % | LKR | |||
Continuing operations | ||||||
Revenue | 11,718,663,224 | 7,347,580,018 | 59 | 32,166,208,979 | ||
Cost of sales | (8,238,141,252) | (4,877,291,864) | 69 | (21,927,172,553) | ||
Gross profit | 3,480,521,972 | 2,470,288,154 | 41 | 10,239,036,426 | ||
Other income | 77,721,788 | 68,858,386 | 13 | 563,541,787 | ||
Selling & distribution expenses | (835,894,718) | (597,988,052) | 40 | (2,327,421,928) | ||
Administration expenses | (727,286,142) | (621,555,305) | 17 | (2,766,082,470) | ||
(Loss)/Gain on disposal of subsidiaries/Associates | - | - | - | (2,705,775) | ||
Results from operating activities | 1,995,062,900 | 1,319,603,183 | 51 | 5,706,368,040 | ||
Finance income | 289,588,015 | 29,579,854 | 879 | 366,448,549 | ||
Finance cost | (276,926,055) | (70,204,101) | 294 | (375,706,666) | ||
Net finance cost | 12,661,960 | (40,624,247) | (131) | (9,258,117) | ||
Share of profit/ (loss) of equity accounted investees | - | (54,022) | (100) | (436,572) | ||
Impairment of Goodwill | - | - | - | (50,000,000) | ||
Profit before tax | 2,007,724,860 | 1,278,924,914 | 57 | 5,646,673,351 | ||
Income tax expense | (408,382,701) | (238,500,097) | 71 | (650,001,269) | ||
Profit for the period | 1,599,342,159 | 1,040,424,817 | 54 | 4,996,672,082 | ||
Other comprehensive income | ||||||
Equity investments at FVOCI - net change in fair value | - | - | - | (65,125,525) | ||
Exchange gain/(Loss) on foreign operation translation | 4,244,332 | 418,007 | 915 | 9,505,900 | ||
Remeasurement of retirement benefit liability | - | - | - | 132,572,210 | ||
Tax on other comprehensive income | - | - | - | (6,574,130) | ||
Total other comprehensive income for the period | 4,244,332 | 418,007 | 915 | 70,378,455 | ||
Total comprehensive income for the period | 1,603,586,491 | 1,040,842,824 | 54 | 5,067,050,537 | ||
Profit attributable to: | ||||||
Owners of the parent company | 1,041,503,969 | 564,346,528 | 85 | 2,720,742,972 | ||
Non-controlling interest | 557,838,190 | 476,078,289 | 17 | 2,275,929,110 | ||
Other comprehensive income attributable to: | ||||||
Owners of the parent company | 4,244,332 | 418,007 | 915 | 31,420,887 | ||
Non-controlling interest | - | - | - | 38,957,568 | ||
Total comprehensive income for the period | 1,603,586,491 | 1,040,842,824 | 54 | 5,067,050,537 | ||
Basic earnings per share | 2.12 | 1.15 | 5.53 |
Figures in brackets indicate deductions. The above figures are not audited n/m- not meaningful
04 | SUNSHINE HOLDINGS PLC | ||||
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||
CONDENSED STATEMENT OF COMPREHENSIVE INCOME - COMPANY | |||||
Unaudited | Audited | ||||
Quarter ended Quarter ended | Year ended | ||||
30th June 2022 | 30th June 2021 | 31st March | |||
Change | 2022 | ||||
LKR | LKR | % | LKR | ||
Revenue | 136,944,894 | 65,359,463 | 110 | 1,075,338,436 | |
Cost of sales | - | - | n/m | - | |
Gross profit | 136,944,894 | 65,359,463 | 110 | 1,075,338,436 | |
Other income | 108,840,581 | 87,166,505 | 25 | 400,666,055 | |
Administration expenses | (126,065,244) | (96,619,830) | 30 | (588,900,644) | |
Impairment of investment in equity-accounted investee | - | - | - | (436,572) | |
Gain on disposal of subsidiaries | - | - | - | 59,173,066 | |
Results from operating activities | 119,720,231 | 55,906,138 | 114 | 945,840,341 | |
Finance income | 27,283,423 | 11,708,099 | 133 | 96,334,771 | |
Finance cost | (11,339,360) | (3,366,605) | 237 | (3,890,181) | |
Net finance cost | 15,944,063 | 8,341,494 | 91 | 92,444,590 | |
Profit before tax | 135,664,294 | 64,247,632 | 111 | 1,038,284,931 | |
Income tax expense | 1,567,817 | 1,040,114 | 51 | (15,452,669) | |
Profit for the period | 137,232,110 | 65,287,746 | 110 | 1,022,832,262 | |
Other comprehensive income | |||||
Equity investments at FVOCI - net change | - | - | - | (65,125,525) | |
Defined benefit plan actuarial gain/(loss) | - | - | - | 13,070,842 | |
Income tax on other comprehensive income | - | - | - | 12,412,284 | |
Total other comprehensive income for the period | - | - | - | (39,642,399) | |
Total comprehensive income for the period | 137,232,110 | 65,287,746 | 110 | 983,189,863 | |
Basic earnings per share from continuing operations | 0.28 | 0.13 | 2.08 |
Figures in brackets indicate deductions. The above figures are not audited n/m- not meaningful
SUNSHINE HOLDINGS PLC | 05 | |||||
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS | ||||||
STATEMENT OF FINANCIAL POSITION - GROUP | ||||||
Unaudited | Adjusted | |||||
As at 30th June | As at 31st | |||||
2022 | March 2022 | |||||
LKR | LKR | |||||
ASSETS | ||||||
Non current assets | ||||||
Property, plant and equipment | 6,361,828,005 | 4,787,019,935 | ||||
Intangible assets | 376,575,922 | 385,928,439 | ||||
Leasehold right to bare land | 253,135,000 | 235,995,000 | ||||
Biological assets | 3,685,953,000 | 3,675,946,000 | ||||
Investment property | 1,031,009,015 | 1,030,093,525 | ||||
Other investments | 747,787,763 | 741,513,041 | ||||
Deferred tax assets | 61,150,320 | 59,582,503 | ||||
Goodwill on Acquisition | 1,830,072,041 | 1,526,648,376 | ||||
Total non-current assets | 14,347,511,067 | 12,442,726,819 | ||||
Current assets | ||||||
Biological assets-growing crops on bearer plants | 71,671,000 | 71,671,000 | ||||
Inventories | 10,594,721,507 | 6,483,619,355 | ||||
Other investments | 137,345,000 | 717,726,603 | ||||
Current tax assets | 70,002,684 | 56,763,982 | ||||
Trade & other receivables | 8,579,068,337 | 6,105,636,443 | ||||
Amounts due from related parties | 113,151,391 | 10,655,319 | ||||
Cash & cash equivalent | 2,738,186,603 | 3,264,723,523 | ||||
Total current assets | 22,304,146,522 | 16,710,796,225 | ||||
Total assets | 36,651,657,588 | 29,153,523,044 | ||||
EQUITY AND LIABILITIES | ||||||
Equity | ||||||
Stated capital | 4,240,394,447 | 1,641,715,247 | ||||
Reserves | 287,600,577 | 274,560,725 | ||||
Retained earnings | 10,894,718,749 | 10,741,353,809 | ||||
Equity attributable to owners of the company | 15,422,713,773 | 12,657,629,781 | ||||
Non-controlling interests | 3,623,779,899 | 5,450,236,264 | ||||
Total equity | 19,046,493,672 | 18,107,866,045 | ||||
Non-current liabilities | ||||||
Loans and borrowings | 2,310,004,540 | 1,663,343,846 | ||||
Employee benefits | 664,967,998 | 615,771,635 | ||||
Deferred income and capital grants | 40,853,000 | 41,442,000 | ||||
Deferred tax | 547,255,906 | 501,523,157 | ||||
Total non-current liabilities | 3,563,081,445 | 2,826,317,338 | ||||
Current liabilities | ||||||
Trade and other payables | 9,512,215,021 | 5,633,690,534 | ||||
Amounts due to related parties | - | 57,537,862 | ||||
Current tax liabilities | 548,536,562 | 615,764,549 | ||||
Loans and borrowings | 2,068,540,219 | 994,833,215 | ||||
Bank overdraft | 1,912,790,671 | 917,513,501 | ||||
Total current liabilities | 14,042,082,472 | 8,219,339,661 | ||||
Total equity and liabilities | 36,651,657,588 | 29,153,523,044 | ||||
Net asset value per share (Rs.) | 31.35 | 25.73 | ||||
Figures in brackets indicate deductions. The above figures are not audited
It is certified that the Financial Statements have been prepared in compliance with the requirements of the Companies Act No. 7 of 2007.
Group Chief Financial Officer
The Board of Directors is responsible for the preparation and presentation of these financial statements.
Approved and signed for and on behalf of the Board,
Chairman | Group Managing Director |
August 05, 2022 | |
Colombo |
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Sunshine Holdings plc published this content on 05 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 August 2022 11:25:04 UTC.
