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.