Sri Lanka’s Sunshine Holdings hit by pharma price controls
ECONOMYNEXT – Sri Lanka’s Sunshine Holdings Plc said profits in its healthcare business fell 66 percent to Rs91 million in the nine months ended December 2016 due to price controls imposed by the state.
Revenues grew 10.5 percent, with 4.1 percent coming from retail sales, the group said. Margins fell 4.3 percent to 3.3 percent mainly due to price controls, which led to a write down of Rs123 million in stock.
The firm said it was the second-largest player in the pharma sector in the country with a 12 percent market share.
Revenues in pharmaceuticals had grown 6 percent from a year earlier, while surgical grew 19 percent, retail 34 percent, diagnostics 6 percent and wellness 16 percent.
The firm also has interests in agriculture and fast moving consumer goods.
Group revenues grew 3.2 percent to Rs4.42 billion in the December quarter, with profit after tax growing 3.2 percent to Rs402 million, helped by agriculture, especially palm oil.
Its branded tea sales were also growing. (Colombo/Feb14/2017)