Sri Lanka Sunshine Group March net almost flat, annual profit up 21-pct

ECONOMYNEXT – Sri Lanka’s Sunshine Holdings Group said March 2016 quarter net profit rose 3 percent to Rs78 million from a year ago.

Sales rose 12 percent to Rs4.6 billion in the quarter, with finance costs down by almost half. The group’s earnings per share for the quarter were 58 cents, interim accounts filed with the stock exchange showed.

EPS for the year ending 31 March 2016 were Rs4.34, with net profit up 21 percent to Rs587 million and sales up 7 percent to Rs17.4 billion.

Sunshine Group Managing Director Vish Govindasamy said growth in revenue was driven by the healthcare and Fast Moving Consumer Goods sectors, which were up 17.9 percent and 18.0 percent, respectively, despite an 8.0 percent contraction in the agriculture business from the year before.

This was a result of the change in the group’s tea strategy, he said in a statement.

Agriculture revenue contracted 8.0 percent during the year 2015/16 to Rs6.3 billion from the previous last year mainly due a 9 percent YoY reduction in tea crop.
Low commodity prices in palm oil also contributed towards the contraction in revenue.

“Profit after tax grew significantly to Rs518 million in 2015/16 compared to Rs391 million (the year before) as a result of the company focusing more on quality to somewhat negate the negative impact of market trends,” Govindasamy said.

He said the increase in both group earnings before interest and tax (EBIT), and EBIT margin is also attributed to the performance in healthcare and agri sectors, in spite of a slight margin contraction in the FMCG sector.
(COLOMBO, June 06 2016)

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