SUNSHINE HOLDINGS PLC

INTERIM CONDENSED FINANCIAL STATEMENTS

FOR THE QUARTER ENDED

31st December 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 38.6 billion for the 9-month period ended 31st December 2022 (9MFY23), up 59.9% YoY. The Group revenue, which predominantly includes revenue from Healthcare, Consumer goods and Agribusiness sectors, contributed 45.7%, 36.5% and 17.2% 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 36.3% YoY against last year, whilst the Agri sector revenue was up by 32.1% YoY. Consumer goods sector recorded a 133.8% YoY increase in revenue compared to last year, driven by the acquisition of Sunshine Tea (Pvt) Ltd. Organic growth stood at 30.7% YoY.

Gross profit margin for the period stood at 26.4%, a contraction of 730 basis points against the corresponding period last year. The gross profit improved by LKR 2.059 billion up 25.3% YoY compared to the previous year, driven by revenue growth.The Group EBIT closed at LKR 5.8 billion, an increase of 30.8% YoY. Group PAT amounted to LKR 3.8 billion in 9MFY23 compared to LKR 3.6 billion reported during the same period last year.The finance cost for the 9-month period amounted to LKR 1.2 billion compared to LKR 233 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 2.2 billion for 9MFY23, an increase of 21.2% YoY.

Healthcare

Healthcare sector recorded a revenue of LKR 17.6 billion during 9MFY23, an increase of 36.3% YoY backed by the price increases to reflect the depreciation of the Rupee, despite volume contraction. EBIT for the sector was LKR 2.1 billion. The Healthcare sector Profit After Tax (PAT) decreased by 2.5% YoY to LKR 825 million.

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

Healthguard retail segment was adversely affected by reduced footfall which resulted in a marginal contraction in revenue. Gross margin contracted due to a shift in the product mix.

Lina, the Pharma manufacturing business of the Group, 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.

Consumer Goods

Consumer Goods sector reported an 133.8%YoY increase in revenue to close at LKR 14.1 billion in 9MFY23. Excluding the new addition of the export business, revenue growth stood at 30.7%YoY. Gross margins were impacted by the rising cost of raw materials. However, EBIT margin has been constant in 9MFY23 cf. 9MFY22. The PAT of the sector increased by LKR 498 million (115.7% YoY) compared to the same period last year.

The local business has encountered challenges as a result of disruptions in distribution caused by social unrest and fuel shortages during the 1 half of the year.The tea category recorded a growth of 32.7% YoY, mainly driven by price increases to reflect higher input cost. Furthermore, the Confectionery category has seen a noteworthy increase revenue of 74.1% YoY, which has been supported by price increases. Our Consumer brands, including Zesta, Watawala, Ran Kahata, and Daintee, have continued to maintain and expand their market shares.

The export business contribution in terms of revenue and PAT for the period stood at LKR 6.2 billion and LKR 344 million respectively.

Agribusiness

Agribusiness sector revenue increased by 32.1% YoY during 9MFY23 compared to the corresponding period last year. The EBIT decreased by LKR 67 million (2.4% decline YoY). EBIT margin for 9MFY23 stood at 41.5%, against 56.2%in the corresponding period last year, owing to increased cost of bought crop and reduction in crop volumes by 6.32% YoY. Reduction in crop was mainly due to the ban imposed on chemical fertilizer.

PAT of the Agri sector closed at LKR 2,595 million for 9MFY23, a contraction of LKR 75 million compared to the same period last year, while the Dairy business recorded a net loss of LKR 63 million in 9MFY23 compared to a net profit of LKR 38 million during the same period last year. Net loss in dairy is mainly stemming from increased feed cost, despite an increase in farm gate selling price.

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

February 14, 2023

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

31st December

31st December

31st December

31st December

31st March

2022

2021

2022

2021

2022

LKR

LKR

%

LKR

LKR

%

LKR

Continuing operations

Revenue

38,561,395,857

24,108,676,040

60

13,633,508,228

8,305,412,246

64

32,166,208,979

Cost of sales

(28,375,347,985) (15,981,132,315)

78

(10,778,411,575)

(5,556,794,832)

94

(21,927,172,553)

Gross profit

10,186,047,872

8,127,543,725

25

2,855,096,653

2,748,617,414

4

10,239,036,426

Other income

190,736,045

250,901,448

(24)

23,275,999

61,823,180

(62)

563,541,787

Selling & distribution expenses

(2,403,863,363)

(2,008,920,536)

20

(721,754,169)

(729,267,842)

(1)

(2,327,421,928)

Administration expenses

(2,151,000,034)

(1,916,045,297)

12

(665,918,575)

(610,356,802)

9

(2,766,082,470)

(Loss)/Gain on disposal of subsidiaries/Associates

-

(2,750,340)

-

-

-

-

(2,705,775)

Results from operating activities

5,821,920,519

4,450,729,000

31

1,490,699,907

1,470,815,950

1

5,706,368,040

Finance income

593,161,570

129,816,481

357

125,948,459

61,097,473

106

366,448,549

Finance cost

(1,219,981,401)

(232,605,503)

424

(513,454,837)

(92,691,698)

454

(375,706,666)

Net finance cost

(626,819,831)

(102,789,022)

510

(387,506,378)

(31,594,225)

1,127

(9,258,117)

Share of profit/ (loss) of equity accounted investees

-

(436,572)

(100)

-

(163,160)

(100)

(436,572)

Impairment of Goodwill

(210,000,000)

-

-

(130,000,000)

-

-

(50,000,000)

Profit before tax

4,985,100,688

4,347,503,406

15

973,193,530

1,439,058,565

(32)

5,646,673,351

Income tax expense

(1,206,461,713)

(770,439,773)

57

(345,313,917)

(318,754,202)

8

(650,001,269)

Profit for the period

3,778,638,975

3,577,063,633

6

627,879,613

1,120,304,363

(44)

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

4,184,694

901,272

364

1,608,722

274,187

487

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

4,184,694

901,272

364

1,608,722

274,187

487

70,378,455

Total comprehensive income for the period

3,782,823,670

3,577,964,905

6

629,488,335

1,120,578,550

(44)

5,067,050,537

Profit attributable to:

Owners of the parent company

2,207,048,678

1,820,333,663

21

272,183,213

611,395,788

(55)

2,720,742,972

Non-controlling interest

1,571,590,298

1,756,729,970

(11)

355,696,400

508,908,575

(30)

2,275,929,110

Other comprehensive income

attributable to:

Owners of the parent company

4,184,694

901,272

364

1,608,722

274,187

487

2,752,163,859

Non-controlling interest

-

-

-

-

-

-

2,314,886,678

Total comprehensive income for the period

3,782,823,670

3,577,964,905

6

629,488,335

1,120,578,550

(44)

10,063,722,619

Basic earnings per share

4.55

4.06

0.56

1.36

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

31st December

31st December

31st December

31st December

31st March

2022

2021

2022

2021

2022

LKR

LKR

%

LKR

LKR

%

LKR

Revenue

829,222,676

683,745,587

21

156,290,521

254,878,004

(39)

1,075,338,436

Cost of sales

-

-

-

-

-

n/m

-

Gross profit

829,222,676

683,745,587

21

156,290,521

254,878,004

(39)

1,075,338,436

Other income

355,328,963

305,648,841

16

128,240,860

104,593,228

23

400,666,055

Administration expenses

(468,531,893)

(359,665,156)

30

(160,635,008)

(125,459,997)

28

(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

716,019,746

629,729,272

14

123,896,373

234,011,235

(47)

945,840,341

Finance income

85,179,877

34,889,403

144

33,831,619

11,119,598

204

96,334,771

Finance cost

(27,932,455)

(3,854,600)

625

(8,828,599)

(210,768)

4,089

(3,890,181)

Net finance cost

57,247,422

31,034,803

84

25,003,020

10,908,830

129

92,444,590

Profit before tax

773,267,167

660,764,075

17

148,899,392

244,920,065

(39)

1,038,284,931

Income tax expense

(40,034,924)

1,956,695

(2146)

6,651,534

731,835

809

(15,452,669)

Profit for the period

733,232,244

662,720,770

11

155,550,927

245,651,900

(37)

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

733,232,244

662,720,770

11

155,550,927

245,651,900

(37)

983,189,863

Basic earnings per share from continuing operations

1.51

1.48

0.32

0.55

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

31st December

31st March

2022

2022

LKR

LKR

ASSETS

Non current assets

Property, plant and equipment

6,274,045,881

4,787,019,935

Intangible assets

355,008,663

385,928,439

Leasehold right to bare land

246,478,000

235,995,000

Biological assets

3,673,594,000

3,675,946,000

Investment property

1,032,128,464

1,030,093,525

Other investments

854,390,687

741,513,041

Deferred tax assets

252,743,923

59,582,503

Goodwill on Acquisition

1,620,072,041

1,526,648,376

Total non-current assets

14,308,461,660

12,442,726,819

Current assets

Biological assets-growing crops on bearer plants

83,654,000

71,671,000

Inventories

9,986,174,220

6,483,619,355

Other investments

24,563,000

717,726,603

Current tax assets

45,565,723

56,763,982

Trade & other receivables

10,423,435,225

6,105,636,443

Amounts due from related parties

69,692,276

10,655,319

Cash & cash equivalent

2,239,027,926

3,264,723,523

Total current assets

22,872,112,371

16,710,796,225

Total assets

37,180,574,031

29,153,523,044

EQUITY AND LIABILITIES

Equity

Stated capital

4,240,394,447

1,641,715,247

Reserves

287,540,939

274,560,725

Retained earnings

11,421,105,452

10,408,007,287

Equity attributable to owners of the company

15,949,040,838

12,324,283,259

Non-controlling interests

3,529,853,430

5,450,236,264

Total equity

19,478,894,268

17,774,519,523

Non-current liabilities

Loans and borrowings

2,236,564,264

1,663,343,846

Employee benefits

669,248,544

615,771,635

Deferred income and capital grants

45,209,292

41,442,000

Deferred tax

870,907,026

501,523,157

Total non-current liabilities

3,821,929,125

2,826,317,338

Current liabilities

Trade and other payables

7,069,127,917

5,633,690,534

Amounts due to related parties

-

57,537,862

Current tax liabilities

531,173,979

949,111,071

Loans and borrowings

4,083,780,623

994,833,215

Bank overdraft

2,195,668,118

917,513,501

Total current liabilities

13,879,750,638

8,552,686,183

Total equity and liabilities

37,180,574,031

29,153,523,044

Net asset value per share (Rs.)

32.42

25.05

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

February 14, 2023

Colombo

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Sunshine Holdings plc published this content on 15 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 February 2023 04:04:05 UTC.