Sri Lanka’s Sunshine Holdings profits bounce back
ECONOMYNEXT – Sunshine Holdings December 2017 said profits rose to 181.9 million rupees from 175 million rupees as profits of the pharmaceutical division which was hit by price controls a year earlier, bounced back.
The group reported net earnings of 1.33 rupees per share from continuing operations and 1.22 rupees from after deducting a write-down for a packaging company that was discontinued.
In late December 2017 it bought a 30 percent stake in Estate Management Services, which will be consolidated from January 2018.
In the nine months to end December 2017, net earnings of 3.69 rupees were reported on a total profit of 713.8 million rupees, up 62 percent from a year earlier.
The one off-loss for the period was 210.4 million rupees on discontinued operations of manufacturing operations of its subsidiary Sunshine Packaging. Its land and buildings are held as investment property at fair value in Sunshine Holdings balance sheet.
Group revenue grew 20 percent in the December quarter to 5.2 billion rupees, cost of sales increased 19 percent to 3.8 billion rupees, expanding gross profits by 21 percent to 1.4 billion rupees.
Administration expenses fell 29 percent to 346.9 million rupees and selling and distribution costs grew 84 percent to 469.4 million rupees.
Net finance costs ballooned 375 percent to 36.9 million rupees in the quarter.
Revenue from healthcare increased 15.2 percent in the December 2017 quarter to 2.0 billion rupees, on higher volumes amid price controls, the company said.
“It is noteworthy that the healthcare arm has been able to post strong results over the last nine months and become the largest contributor to group revenue, after it grappled significantly due to the implementation of the price controls over 48 molecules during last year," Managing Director Vish Govindsamy told shareholders.
Health Minister Rajitha Senarathne has said that the government gave a 5 percent increase in price and firm had also managed to re-negotiate prices from suppliers.
Consumer goods revenue was up 28.1 percent in the quarter to 1.4 billion, on growth in volume and price.
The agriculture segment reported 12 percent revenue growth to 1.6 billion rupees in the quarter. The company said palm oil profits fell with a rise in costs.
Hydro power profits also rose with second plant starting in October and strong rainfall. (COLOMBO, February 09, 2018)