Sunshine Holdings PLC (CSE: SUN) has reported a consolidated revenue of Rs. 14.2 billion for the first quarter of the 2024/25 financial year, marking a 6.5% increase year-on-year (YoY). However, Profit After Tax (PAT) fell by 3.6% YoY to Rs. 1.4 billion.
The Group’s Healthcare sector remains the largest contributor, generating 53.1% of total revenue, followed by the Consumer sector at 32.4% and Agribusiness at 14.5%.
Group CEO Shyam Sathasivam acknowledged the economic challenges, particularly the effects of tax adjustments on consumer spending. He noted that the Group has taken measures to adapt to these changes.
The Healthcare sector saw significant growth, with revenue rising 19.8% YoY to Rs. 7.6 billion, driven by robust performance in manufacturing and pharmaceuticals. Lina Manufacturing, in particular, achieved a remarkable 104.4% YoY revenue growth, largely due to increased production at its Metering Dose Inhaler (MDI) plant, now meeting most of the government’s MDI needs.
The Consumer sector experienced a slight revenue decline of 1.9% YoY to Rs. 4.6 billion but improved by 2.6% compared to the previous quarter, partly due to adjustments in VAT. The Branded Tea and Confectionery businesses saw a 16.9% YoY revenue drop due to reduced sales volumes. In contrast, the export business benefited from a 31.1% revenue increase, driven by higher demand and lower tea costs.
The Agribusiness sector, represented by Watawala Plantations PLC (CSE: WATA), recorded Rs. 2.1 billion in revenue, reflecting a 12.1% YoY decrease. This decline was attributed to a 13.8% drop in palm oil revenue. Conversely, the dairy segment saw an improvement, with a PAT margin of 8.2% in 1QFY25 compared to -12.8% in the same period last year, due to higher milk production and lower feed costs.