Sri Lanka Sunshine group June net up 10.8-pct

ECONOMYNEXT – Sri Lanka’s Sunshine Holdings group said June 2015 quarter net profit rose 10.8 percent from a year ago, with high margins in branded teas as auction prices fell and consumers shifting to beauty products in its health stores.

The June 2015 net profit was 162 million rupees supported by strong growth from its fast moving consumer goods business although earnings from tea plantations fell.

Earnings per share sore to 1.20 rupees in the quarter from 1.10 rupees last year while sales grew marginally by 4.9 percent to 4.2 billion rupees, a stock exchange filing said.

The company said it expects its Healthcare and FMCG sectors will do better in the next quarter with its network of pharmacies expanding and high margins in branded teas owing to lower auction prices.

“Our Healthcare Retail chain ‘Healthguard’ expanded its retail footprint during 1QFY16 by adding two new full service stores located in Kirula Road, and Colombo 03,” a statement said.

At its Healthuard flag ship store, re-launched in 4QFY15, the firm said it was “encouraged by the increase in basket value and margins as a result of the sales mix tilting towards the Beauty and Wellness segments, as opposed to the prescribed pharma.”

Two more stores are planned to be opened before the end of FY16.

In the agency business, covering pharma, surgical, diagnostics, and wellness, Sunshine Holdings said it expects more earnings from new products although profit margins got squeezed owing to “pressure from our business partners.”

The company said it is continuously on the lookout for “new molecules in high growth therapeutic classes.”

“In FMCG, we will continue to expand distribution reach and improve availability of our products,” the statement said.

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“If tea prices continue to remain soft, we expect this segment to maintain the high margins which it currently enjoys.”

Sunshine Holdings has invested in its own water bottling plant which is currently under construction and said it will re-launch the bottled water brand ‘Zest’.  (Colombo/August 17 2015)
 

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