SUNSHINE HOLDINGS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED

30th September 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 24.9 billion for the 6-month period ended 30th September 2022 (1HFY23), up 57.7% YoY. The Group revenue which predominantly includes revenue from Healthcare, Consumer goods and Agribusiness sectors, which contributed 46.6%, 34.4% and 18.4% 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 35.9% against last year, whilst the Agri sector revenue was up by 34.4% YoY. Consumer goods sector recorded a 128.4% YoY increase in revenue compared to last year, driven by the acquisition of Sunshine Tea (Pvt) Ltd. Organic growth stood at 21.3% YoY.

Gross profit margin for the period stood at 29.4%, which is a contraction of 463 basis points against the corresponding period last year.The gross profit improved by LKR 1,952 million up 36.3% YoY compared to the previous year, driven by revenue growth.The Group EBIT closed at LKR 4,331 million, an increase of 45.3% YoY. Group PAT amounted to LKR 3,151 million in 1HFY23 compared to LKR 2,457 million reported during same period last year.The finance cost for the 6-month period amounted to LKR 707 million compared to LKR 140 million during the same period last year. The increase is owing to higher interest rates, higher facility utilization and the addition of the tea export business. Profit attributable to equity shareholders (PATMI) closed at LKR 1,935 million for 1HFY23, an increase of 60.0% YoY.

Healthcare

Healthcare sector recorded a revenue of LKR 11.6 billion during 1HFY23, a significant increase of 35.9% YoY backed by the price increases to reflect the depreciation of the Rupee, despite volume contraction. EBIT for the sector was LKR 1,505 million.The Healthcare sector Profit After Tax (PAT) increased by 51.7% YoY to LKR 770 million.

Consumer Goods

Consumer Goods sector reported a 128.4% YoY increase in revenue to close at LKR 8.6 billion in 1HFY23. Excluding the new addition, revenue growth stood at 21.3% YoY. Gross margins were impacted by the rising cost of raw materials. However, EBIT margin has improved by 256 bps YoY. The PAT of the sector increased by LKR 383 million (350.1% 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 1HFY23 compared to 1HFY22 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 period stood at LKR 4,016 million and LKR 336 million respectively.

Agribusiness

Agribusiness sector revenue increased by 34.4% YoY during 1HFY23 compared to the corresponding period last year. The EBIT increased by LKR 13 million (0.6% increase YoY). EBIT margin for 1HFY23 stood at 44.4%, 1,491 bps lower than the corresponding period last year, owing to increased cost of bought crop and reduction in crop volumes YoY. Reduction in crop was mainly due to the ban imposed on chemical fertilizer.

PAT of the Agri sector closed at LKR 1,934 million for 1HFY23, up by LKR 45 million compared to the same period last year, while the Dairy business recorded a net loss of LKR 41 million in 1HFY23 compared to a net profit of 32 million during the same period last year. Net loss in dairy is mainly stemming from increased feed cost, despite increase in farm gate price.

Pharmaceuticals segment and Medical Devices segment witnessed revenue growth owing to price increases despite the continued pressure on volume.

Healthguard retail segment was adversely affected by reduced footfall and gross margin contracted due to consumer focus on essential medicines compared to wellness products. The retail business recorded a marginal contraction in revenue as volumes contracted significantly.

Lina, the Pharma manufacturing business, experienced revenue growth mainly due to price revisions together with the revenue earned from Metered Dose Inhaler (MDI) sales to the government.The first MDI sale was made in the month of July 2022 marking the commencement of commercial operations in Lina Spiro.

Outlook

With local consumers being significantly impacted due to macroeconomic issues and fiscal policy tightening, the Group will strive to deliver value to its local customers, while focusing on growth outside of Sri Lanka with the recently acquired export business. Further details of the Group's performance are available on the company website. (https://www. sunshineholdings.lk/investor/financial-reports)

V. Govindasamy

Group Managing Director

11th November 2022

Colombo

SUNSHINE HOLDINGS PLC

03

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED STATEMENT OF COMPREHENSIVE INCOME - GROUP

Unaudited

Unaudited

Audited

Period ended

Period ended

Change

Quarter ended

Quarter ended

Change

Year ended

30th September

30th September

30th September

30th September

31st March

2022

2021

2022

2021

2022

LKR

LKR

%

LKR

LKR

%

LKR

Continuing operations

Revenue

24,927,887,629

15,803,263,794

58

13,209,224,405

8,455,683,776

56

32,166,208,979

Cost of sales

(17,596,936,411)

(10,424,337,483)

69

(9,358,795,159)

(5,547,045,619)

69

(21,927,172,553)

Gross profit

7,330,951,219

5,378,926,311

36

3,850,429,246

2,908,638,157

32

10,239,036,426

Other income

167,460,046

189,078,268

(11)

89,738,258

120,219,882

(25)

563,541,787

Selling & distribution expenses

(1,682,109,194)

(1,279,652,694)

31

(846,214,476)

(681,664,642)

24

(2,327,421,928)

Administration expenses

(1,485,081,459)

(1,305,688,495)

14

(757,795,317)

(684,133,190)

11

(2,766,082,470)

(Loss)/Gain on disposal of subsidiaries/Associates

-

(2,750,340)

-

(2,750,340)

-

(2,705,775)

Results from operating activities

4,331,220,611

2,979,913,050

45

2,336,157,711

1,660,309,867

41

5,706,368,040

Finance income

467,213,111

68,719,008

580

177,625,096

39,139,154

354

366,448,549

Finance cost

(706,526,564)

(139,913,805)

405

(429,600,509)

(69,709,704)

516

(375,706,666)

Net finance cost

(239,313,453)

(71,194,797)

236

(251,975,413)

(30,570,550)

724

(9,258,117)

Share of profit/ (loss) of equity accounted investees

-

(273,412)

(100)

(219,390)

(100)

(436,572)

Impairment of Goodwill

(80,000,000)

-

-

(80,000,000)

-

-

(50,000,000)

Profit before tax

4,011,907,159

2,908,444,841

38

2,004,182,299

1,629,519,927

23

5,646,673,351

Income tax expense

(861,147,796)

(451,685,571)

91

(452,765,095)

(213,185,474)

112

(650,001,269)

Profit for the period

3,150,759,363

2,456,759,270

28

1,551,417,204

1,416,334,453

10

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

2,575,972

627,085

311

(1,668,360)

209,078

(898)

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

2,575,972

627,085

311

(1,668,360)

209,078

(898)

70,378,455

Total comprehensive income for the period

3,153,335,336

2,457,386,355

28

1,549,748,844

1,416,543,531

9

5,067,050,537

Profit attributable to:

Owners of the parent company

1,934,865,466

1,208,937,875

60

893,361,497

644,591,347

39

2,720,742,972

Non-controlling interest

1,215,893,899

1,247,821,395

(3)

658,055,709

771,743,106

(15)

2,275,929,110

Other comprehensive income

attributable to:

Owners of the parent company

2,575,972

627,085

311

(1,668,360)

209,078

(898)

31,420,887

Non-controlling interest

-

-

38,957,568

Total comprehensive income for the period

3,153,335,336

2,457,386,355

28

1,549,748,845

1,416,543,531

9

5,067,050,537

Basic earnings per share

3.93

2.46

1.82

1.31

5.53

Figures in brackets indicate deductions.

The above figures are not audited

04

SUNSHINE HOLDINGS PLC

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

CONDENSED STATEMENT OF COMPREHENSIVE INCOME - COMPANY

Unaudited

Unaudited

Audited

Period ended

Period ended

Change

Quarter ended

Quarter ended

Change

Year ended

30th September 30th September

30th September 30th September

31st March

2022

2021

2022

2021

2022

LKR

LKR

%

LKR

LKR

%

LKR

Revenue

672,932,155

428,867,583

57

535,987,261

363,508,120

47

1,075,338,436

Cost of sales

-

-

-

-

n/m

-

Gross profit

672,932,155

428,867,583

56.9091

535,987,261

363,508,120

47

1,075,338,436

Other income

227,088,103

201,055,613

13

118,247,522

113,889,108

4

400,666,055

Administration expenses

(307,896,885)

(234,205,159)

32

(181,831,641)

(137,585,329)

32

(588,900,644)

Impairment of investment in equity-accounted investee

-

-

-

-

-

-

(436,572)

Gain on disposal of subsidiaries

-

-

-

-

-

-

59,173,066

Gain on disposal of subsidiary shares

-

-

-

-

-

-

Results from operating activities

592,123,373

395,718,037

50

472,403,142

339,811,899

39

945,840,341

Finance income

51,348,258

23,769,805

116

24,064,835

12,061,706

100

96,334,771

Finance cost

(19,103,856)

(3,643,832)

425

(7,764,496)

(277,227)

2,701

(3,890,181)

Net finance cost

32,244,402

20,125,973

60

16,300,339

11,784,479

38

92,444,590

Profit before tax

624,367,775

415,844,010

50

488,703,481

351,596,378

39

1,038,284,931

Income tax expense

(46,686,458)

1,224,860

(3912)

(48,254,275)

184,746

(26,219)

(15,452,669)

Profit for the period

577,681,317

417,068,870

39

440,449,207

351,781,124

25

1,022,832,262

Other comprehensive income

Equity investments at FVOCI - net change in fair value

-

-

-

-

-

-

(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

577,681,317

417,068,870

39

440,449,207

351,781,124

25

983,189,863

Basic earnings per share from continuing operations

1.17

0.85

0.90

0.72

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

As at

30th September

31st March

2022

2022

LKR

LKR

ASSETS

Non current assets

Property, plant and equipment

6,351,604,743

4,787,019,935

Intangible assets

366,519,638

385,928,439

Leasehold right to bare land

249,481,000

235,995,000

Biological assets

3,666,888,000

3,675,946,000

Investment property

1,031,009,015

1,030,093,525

Other investments

883,150,702

741,513,041

Deferred tax assets

57,320,232

59,582,503

Goodwill on Acquisition

1,750,072,041

1,526,648,376

Total non-current assets

14,356,045,371

12,442,726,819

Current assets

Biological assets-growing crops on bearer plants

83,654,000

71,671,000

Inventories

10,866,713,136

6,483,619,355

Other investments

4,283,000

717,726,603

Current tax assets

48,240,068

56,763,982

Trade & other receivables

9,024,104,031

6,105,636,443

Amounts due from related parties

77,854,704

10,655,319

Cash & cash equivalent

2,359,155,049

3,264,723,523

Total current assets

22,464,003,988

16,710,796,225

Total assets

36,820,049,359

29,153,523,044

EQUITY AND LIABILITIES

Equity

Stated capital

4,240,394,447

1,641,715,247

Reserves

285,932,217

274,560,725

Retained earnings

11,148,922,228

10,741,353,809

Equity attributable to owners of the company

15,675,248,892

12,657,629,781

Non-controlling interests

3,606,866,575

5,450,236,264

Total equity

19,282,115,468

18,107,866,045

Non-current liabilities

Loans and borrowings

2,334,787,901

1,663,343,846

Employee benefits

693,135,731

615,771,635

Refundable Deposit Received

-

-

Deferred income and capital grants

40,263,000

41,442,000

Deferred tax

554,138,700

501,523,157

Total non-current liabilities

3,622,325,332

2,826,317,338

Current liabilities

Trade and other payables

7,017,696,891

5,633,690,534

Amounts due to related parties

186,908,501

57,537,862

Current tax liabilities

527,151,711

615,764,549

Loans and borrowings

4,180,623,481

994,833,215

Bank overdraft

2,003,227,976

917,513,501

Total current liabilities

13,915,608,560

8,219,339,661

Total equity and liabilities

36,820,049,359

29,153,523,044

Net asset value per share (Rs.)

31.86

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,

Director

Group Managing Director

November 11, 2022

Colombo

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Sunshine Holdings plc published this content on 11 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 November 2022 10:51:05 UTC.