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.