Sri Lanka allows offshore banks in Colombo Port City: Commission

ECONOMYNEXT – Sri Lanka’s Sunshine Holdings Plc said its profit rose 85% year-on-year to Rs 1.04 billion in the June 2022 quarter, helped by healthcare sectors and consumption.

The group reported a profit of 2.12 rupees for the quarter.

Gross profit rose 41% to 3.5 billion rupees in the quarter, with revenue up 59% to 11.7 billion rupees and cost of sales up 69% to 8.2 billion rupees.

Net financial charges fell by 131% to 12.6 million rupees.

In the six months to June, healthcare sector revenue rose 45.9% to Rs 5.8 billion and made after-tax profits of Rs 432 million, the group’s chief executive said. , Vish Govindasamy.

“The pharmaceuticals segment witnessed panic buying for chronic care products during 1QFY23 and demand for wellness and covid products was challenged,” Govindasamy said.

“The medical device segment saw revenue growth due to price increases despite pressure on volume from lower hospital occupancy and lower demand for laboratory tests.”

Its Healthguard chain of stores had been hit by footfall due to a drop in demand for wellness products, with consumers buying only essentials.

Consumer goods revenue rose 109% to 2.9 billion rupees. After tax, profits increased by 384% to Rs 235 million.

“The local business has faced challenges mainly due to distribution disruption due to social unrest and fuel shortages,” he said.

“The Tea category experienced a contraction in volumes in 1QFY23 compared to 1QFY22, while Confectionery category revenues increased significantly, supported by price increases.”

Agribusiness after-tax profits had increased by $734 million.

“EBIT decreased by 27 million (contraction of 3.5% YoY) due to the increased cost of purchased crop and lower crop volumes YoY. The reduction in the harvest is due to the unavailability of fertilizer over the past two years.

The dairy business recorded a net loss of LKR 40 million in 1QFY23, compared to a net profit of LKR 18 million in the same quarter last year.

“The net loss in dairy products is mainly due to the increase in the cost of feed, despite the increase in the price at the farm gate.”


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Aurora J. William