Sunshine hits Rs. 6.9 b in revenues; reports net income of Rs. 242 m in 1H14
Wednesday, 6 November 2013 00:00
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Sunshine Holdings PLC yesterday reported profit after tax of Rs. 361 m for the first half-year ending 30 September 2013 (1H14), a28.9% YoY decline cf. Rs. 507 m in 1H13.
Reported top line stood at Rs. 6.9 b in 1H14 cf. Rs. 6.4 b in 1H13. EPS was Rs. 1.81, out of which Rs. 1.32 is attributable to 2Q14. EPS for 1H13 stood at Rs. 2.12.
The PAT margin has contracted to 5.2% in 1H14 cf. 7.9% in 1H13 due to margin erosion in the Agri sector, resulting from crop loss due to bad weather, and wage hikes for plantation workers.
Despite a 28.9% YoY drop in group PAT, profit to equity holders was down only 14.5% YoY to Rs. 242 m in 1H14 cf. Rs. 283 m in 1H13.
Business segments
Revenues for the Healthcare sector marginally grew to Rs. 2.7 b in 1H14 cf. Rs. 2.6 b in the same period last year. This represents 38.1% of total group revenue. The growth in revenue was dampened by the Milkgate issue, where some specialty milk powders distributed by the group saw low sales during 1H14. Reported PAT for the segment stood at Rs. 153 m in 1H14, up 4.3% YoY, despite almost flat growth in the top line. Segment margins were flat at 5.6% in 1H14 cf. 5.5% in the same period last year.
The Agri sector, which contributed 40.6% of group revenue, reported revenues of Rs. 2.9 b in 1H14, up 6.3% YoY cf. Rs. 2.7 b in 1H13. Sector PAT was down to Rs. 99 m in 1H14 cf. Rs. 307 m in the same period last year. The drop in profitability came on the back of wage increases, and also crop losses due to adverse weather conditions in 1Q14, which had a negative impact on the tea plantations. Better performance in the palm oil plantations dulled the negative impact of the tea sector.
The FMCG sector reported revenues of Rs. 1.1 b in 1H14, up 38.0% YoY, on the back of both volume and price growth. The sector accounts for 16.0% of group revenue in 1H14. PAT from the FMCG segment grew 61.0% YoY to stand at Rs. 133 m in 1H14, and margins increased to 11.7% in 1H14 cf. 10.0% in the same period last year.
2Q14 results
For the quarter ending 30 September 2013 (1Q14), revenue is up 6.7% YoY to Rs. 3.5 b, while PAT declined 2.7% YoY to Rs. 236 m. PAT margins contracted to 6.7% in 2Q14 cf. 7.4% in the same period last year, mainly driven by the wage impact in the Agribusiness segment.
Profit attributable to equity holders was up 69.4% YoY to Rs. 176 m in 2Q14, with reported EPS at Rs. 1.32.
Overall, 1H14 has been challenging, but the company has managed to turn the business around due to a strong 2Q14 performance.
“Despite challenging macro environmental conditions, we have achieved sustainable top line growth, despite a marginal dip in profitability during 1H14. Given our strong business model and industry knowhow, we are optimistic of reporting sustainable growth in both revenue and profitability in the second half of our financial year,” said Rienzie T. Wijetilleke, Chairman of Sunshine Holdings PLC.
