Monday, 19 August 2013 00:05
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Consolidated revenue of Rs. 3.5 billion, increase of 10% YoY
Profit After Tax (PAT) of Rs. 125 million, decrease of 53% YoY compared to Rs. 265 million in Q1 2012/13
Announced JV with Pyramid Wilmar Plantations (Pvt) Ltd., significant value added for the group
Healthcare delivers consistent performance
Palm oil continues to be a profit story
FMCG registers strong revenue & PAT growth
Sunshine Holdings PLC reported a Profit After Tax (PAT) of Rs. 125 million for the quarter ending 30 June 2013 (1Q 2013/14), a 53% decline compared with PAT of Rs. 265 million in 1Q 2012/13. Earnings per share were Rs. 0.49 compared with Rs. 1.37 in the first-quarter of 2012/13. Weather related volatilities in agribusiness significantly affected operations during the period.
During the quarter under review, the group had announced a strategic move in partnering with Pyramid Wilmar Plantations (Pvt) Ltd. (Pyramid). This JV was completed at Estate Management Service Ltd. (EMSPL, subsidiary of SUN), which is the holding company for both Watawala Plantations PLC and Watawala Tea Ceylon Ltd.
This significant transaction will pave the way for future growth for the group, specifically in terms of its agribusiness and FMCG business. Wilmar International Ltd. (JV partner) is one of the largest agribusiness groups in Asia with significant value add in the entire supply chain of palm oil. With its large palm oil plantations (upstream), advanced processing capabilities (midstream) and the extensive global distribution network for its edible oil (downstream), we will drive the partnership to derive more synergies as we expand the business.
Post the transaction, Sunshine Holdings ownership will get diluted to 33.15% from the original 51%. Pyramid Wilmar Agriculture (Pvt) Ltd. will hold 35% while the balance will be held by Tata Global Beverages Ltd.
At company level, a capital gain of Rs. 857 million was recorded as a non-recurring exceptional event from part divesture of EMSPL shares which is stated in the other income and income tax arising on the above transaction has not been accrued pending clarifications by tax authorities.
Business Segments
Healthcare reported a marginal revenue growth, posting Rs. 1.35 billion, an increase of 4% YoY compared to Rs. 1.3 billion for the same period last year. PAT was Rs. 78 million compared to Rs. 97 million for the same period last year.
The significant decrease in the overall group’s post-tax profits was mainly due to abnormal weather conditions, which has been exasperated the agribusiness performance in a wage impact year. Profits in agribusiness were Rs. 11 million compared to Rs. 118 million in the corresponding quarter last year.
FMCG sector has shown strong revenue and PAT growth during the Q1. Revenue has increased 40% to Rs. 527 million, compared to Rs. 378 million during the same period last year. PAT also has shown a sharp increase to register a 60% growth to post Rs. 54 million against Rs. 34 million.
The profits to equity holders of Sunshine Holdings reached Rs. 65 million from Rs. 182 million YoY, a significant decrease compared to the same period last year. Profit impact in the agribusiness sector was mainly twofold; adverse weather conditions and the wage/gratuity impact, which came into effect 1 April 2013.
“Taking into consideration the current environment we are operating in and the uncontrollable exposure to weather, our strong business model we have built over the years, will help mitigate market risk and continue to be optimistic about reporting a sustainable growth in all business units, as we move into 2nd quarter,” said Sunshine Holdings PLC Chairman Rienzie T. Wijetilleke.
