Sri Lanka’s Sunshine group December net down 45-pct
EconomyNext – Sri Lanka’s Sunshine Holdings group, which has interests in plantations, healthcare and consumer goods, has reported a sharp fall in net profit in the December 2014 quarter despite higher sales.
A stock exchange filing said net profit attributable to owners of the parent company fell 45 percent to 104 million rupees while sales rose nine percent to four billion rupees for the December 2014 quarter from a year ago.
Basic earnings per share of the group, which acts as a holding company carrying out investment in subsidiaries, including Watawala Plantations, fell to 77 cents from 1.40 rupees, during the period.
For the nine months ending 31 December 2014, profit attributable to owners of the parent company fell five percent to 408 million rupees with EPS falling to 3.05 rupees from 3.20.
Sunshine Holdings Chairman Rienzie T. Wijetilleke said in a statement total comprehensive income for the nine-month period rose eight percent to 840 million rupees from a year ago.
Wijetilleke has just retired as chairman of Sunshine Holdings and was replaced by Muni Shaikh, who is Chairman of Abbott India and Pakistan, a healthcare firm.
Wijetilleke said Sunshine Holdings group sales rose 14 percent to 12.2 billion rupees for the nine months to 31st December 2014 from a year ago.
Group earnings before interest and tax went up 13 percent to 1.3 billion rupees.
"Group revenue was largely driven by the Healthcare, Agri and FMCG sectors which recorded growths of 11 percent, 17 percent and 18 percent, whilst group operating profits were boosted by the Agri sector," he said.
The healthcare business net profit fell to 174 million rupees in the nine-month period from 242 million for the same period last year.
Goodwill written off amounting to 62 million rupees negatively impacted profit after tax, Wijetilleke said.
The Agri sector profit grew 32 percent to 409 million rupees in the nine months to December 2014 from a year ago.