Sunshine Holdings finalises $ 5 m funding from IFC

Friday, 4 June 2021 03:23 - - {{hitsCtrl.values.hits}}

Long-term facility to power investments in consumer sector, which in FY21 accounted for 29% of Group revenue

Sunshine Holdings PLC yesterday said it has finalised $ 5 million in funding from the International Finance Corporation (IFC) of the World Bank Group.

An agreement to this effect has been entered into by IFC and Sunshine Consumer Lanka Ltd., a 100% owned subsidiary of Sunshine Holdings.

The company said the subsidiary has entered into a long-term loan facility subject to conditions precedent.

Funds will be utilised for investments in the consumer sector.

The deal was first announced in January this year with original amount being $ 7 million.

Sunshine recorded a consolidated Group revenue of Rs. 24.3 billion for the year ended 31 March, an increase of 16.6% over FY20. Profit After Tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5% YOY.

The group’s Healthcare and Consumer sectors led growth while the Healthcare segment remained the major contributor to total Group revenue in FY21. The Consumer sector posted a pre-tax profit of Rs. 552.5 million in FY21, up from Rs. 425.5 million in the previous year.

Spearheaded by brands like ‘Zesta’, ‘Watawala Tea’, ‘Ran Kahata’ and ‘Daintee’, the Consumer sector continued its impressive growth by posting revenues of Rs. 7.1 billion in FY21, an increase of 30.8% YOY and accounted for 29% of group revenue for the period.

The revenue growth was predominantly due to the addition of the confectionary business via the acquisition of Daintee during the second quarter. PAT from the Consumer segment increased by 57.2% YOY, to stand at Rs. 467 million for FY21. Post-acquisition, Daintee contributed Rs. 185 million to the bottom line.

The 100% acquisition of Daintee Ltd. was valued at Rs. 1.7 billion.