Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — Q3 FY2023 Earnings Presentation
33 slides from Sunshine's earnings presentation, Feb 17, 2023
Slide 1: 3QFY23 Earnings Webinar
3QFY23 Earnings Webinar Sunshine Holdings PLC 17 February 2023
Slide 2: Housekeeping Announcements
Housekeeping Announcements • The webinar will be recorded and later uploaded to our IR website for future reference • All participants will be muted during the presentation. • Participants can unmute themselves to ask questions in the Q&A session • Participants can raise their questions via the chat
Slide 3: Corporate Announcements
Corporate Announcements • Share swap in May 2022 - SUN shares (8.8% stake) offered to Akbar Brothers at LKR 60 per share in exchange for their 28% stake in the Healthcare business and thereby SUN gained full control of the Healthcare segment • Divestment of “Pride of Lonach”, downstream business und
Slide 4: Group Performance
Group Performance
Slide 5: Group at a Glance – 3QFY23
Group at a Glance – 3QFY23 Revenue Composition - 3QFY23 Other, 0% • LKR 13.6bn in Revenue Agriculture, 15% 27.2% • LKR 628m PAT -43.9%YoY • PATMI of LKR 272m -55.5%YoY LKR 13.6bn 64.2% Healthcare, 44% • ROE of 4.3% (8.6% LY - YoY) Consumer, 37.0% 41% • Leverage at 30.4% (FY22: 22.5%) 142.7%
Slide 6: Group – Performance Highlights
Group – Performance Highlights LKR m 9MFY23 9MFY22 Growth % 3QFY23 3QFY22 Growth % Revenue 38,561 24,109 59.9% 13,634 8,305 64.2% EBIT 5,822 4,451 30.8% 1,491 1,471 1.4% EBIT margin 15.1% 18.5% 10.9% 17.7% PAT 3,779 3,577 5.6% 628 1,120 -43.9% PAT margin 9.8% 14.8% 4.7% 13.5% PATMI 2,207 1,820 21.3%
Slide 7: Healthcare
Healthcare
Slide 8: Healthcare Sector
Healthcare Sector Revenue Split [9MFY23] Total Asset Split [9MFY23] Pharma Manufacturing Pharma Manufacturing 4% 11% Retail (Healthguard) Retail 9% (Healthguard) 5% Medical devices Medical devices 18% 16% Pharma+Distribution Pharma+Distribution 68% 69%
Slide 9: Healthcare – Performance Highlights
Healthcare – Performance Highlights LKR m 9MFY23 9MFY22 Growth % 3QFY23 3QFY22 Growth % Revenue 17,640 12,946 36.3% 6,029 4,400 37.0% EBIT 2,088 1,253 66.6% 583 493 18.3% EBIT margin 11.8% 9.7% 9.7% 11.2% PAT 825 846 -2.5% 55 339 -83.8% PAT margin 4.7% 6.5% 0.9% 7.7% • Margins improved due to MRP pr
Slide 10: Pharmaceuticals – Pharma Segment Performance
Pharmaceuticals Pharma Segment Performance • Market growth at 34.3% YoY • Sunshine recorded a growth of 35.4% 45.0% 13.5% 40.0% 13.0% 35.0% 30.0% 12.5% 25.0% 12.0% 20.0% 15.0% 11.5% Market Share % 10.0% 11.0% Growth % 5.0% 0.0% 10.5% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q2/2020 Q3/2020 Q4/2020 Q1/2021 Q2
Slide 11: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index April 2021 considered as the base (i.e., 100) 210 400 197 197 197 197 197 197 197 197 197 370 370 370 370 370 370 370 190 355 365 350 179 170 299 179 179 179 179 179 179 179 179 300 150 141 250 149 210 203 203 203 203 203 203 130 200 200 201 200 109 200 100 100
Slide 12: Sunshine Medical Devices (SMD)
Sunshine Medical Devices (SMD) Sunshine Medical Devices Segment Performance • 9MFY23 witnessed a 44.6% growth in revenue vs 9MFY22, despite volume contraction of 22.0% YoY. • 3QFY23 revenue increased by 62.2% cf. 3QFY22. Market Dynamics 120% 100% 97% 100% 98% 94% 94% 95% 91% 88% 89% 80% 84% 81% 80%
Slide 13: Pharma Manufacturing
Pharma Manufacturing Pharma Manufacturing Segment Performance • Achieved over LKR 300 million in revenue in 3QFY23, demonstrating continued growth and success. • Operating 24/7 from December 2022. • Achieved break-even in operating profit for 9MFY23, marking a significant milestone towards sustained
Slide 14: Retail (Healthguard)
Retail (Healthguard) Low 3QFY22 3QFY23 Limited Footfall 243K 207K supply of fuel Retail Segment Performance 15% degrowth • 3QFY23 Revenue growth of 11.6% YoY • Reduced footfall Improved Q2 Q3 • Less purchases in wellness products adversely impacted the Availability 79% 84% GP margin • Loyalty engage
Slide 15: Consumer
Consumer
Slide 16: Consumer Sector
Consumer Sector Revenue Split [9MFY23] Total Asset Split [9MFY23] Tea 23% Tea Export 37% business 44% Export business 53% Confectionery 24% Confectionery 19%
Slide 17: Consumer – Performance Highlights
Consumer – Performance Highlights (LKR millions) Growth Export LKR m 9MFY23 9MFY22 Growth % 3QFY23 3QFY22 % LKR m Contribution Revenue 14,090 6,027 133.8% 5,523 2,277 142.6% **9MFY23 Revenue 6,212 EBIT 905 398 127.1% 205 188 8.7% EBIT 567 EBIT margin 6.42% 6.61% 3.7% 8.3% **Performance is consolidat
Slide 18: Export Business
Export Business 1,150.00 2,500.00 1,100.00 2,000.00 1,050.00 1,500.00 1,000.00 950.00 1,000.00 900.00 500.00 850.00 800.00 - 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 Export Quantity ('000 Kg) - RHS Export Revenue (LKR million) - LHS
Slide 19: Local Business
Local Business TEA CONFECTIONERY 40.6% 3QFY23 60.7% 3QFY23 -16.2% Volume Growth -22.0% Volume Growth 72.0% Price Growth 110.0% Price Growth Challenged in volumes due to; • Growth owing to price • Low consumer sentiment increases. • Outlets reducing stocks
Slide 20: Tea – Price Index
Tea – Price Index April 2021 considered as the base (i.e., 100) Tea Volume in '000kg 250 1.6 1.5 230 236 239 1.4 1.3 234 1.3 1.3 210 225 221 1.2 1.2 190 200 200 1.0 1.0 1.0 187 170 175 0.8 168 150 154 0.6 117 146 146 146 146 146 146 130 116114 109 109 127 0.4 110 112 105 104 104 104 104 0.2 90 100 1
Slide 21: Tea - Brand Volume Market Share
Tea - Brand Volume Market Share Tea-Vol MS% SCL EKATERRA 60% 48% 48% 47% 47% 46% 50% 46% 45% 44% 44% 44% 44% 44% 44% 44% 43% 43% 42% 42% 40% 29% 28% 28% 27% 26% 26% 30% 26% 26% 25% 25% 24% 24% 24% 24% 24% 23% 23% 23% 20% 10% 0% 2021 2021 Jul 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022 202
Slide 22: Confectionery – Price Index
Confectionery – Price Index April 2021 considered as the base (i.e., 100) 270 Confectionery - number of units sold 250 250 250 250 250 250 250 250 250 3.5 230 3.0 210 3.0 2.8 210 200 203 2.6 189 191 192 190 192 192 190 2.5 2.3 2.3 2.3 170 170 2.0 1.8 150 1.5 124 119 150 150 150 150 130 113 109 111 1
Slide 23: Confectionery – Value Market share
Confectionery – Value Market share
Slide 24: Agribusiness
Agribusiness
Slide 25: Agri Sector
Agri Sector Revenue Split [9MFY23] Total Asset Split [9MFY23] Dairy 13% Dairy 35% Palm Oil 65% Palm Oil 87%
Slide 26: Agri – Performance Highlights
Agri – Performance Highlights LKR m 9MFY23 9MFY22 Growth % 3QFY23 3QFY22 Growth % Revenue 6,649 5,033 32.1% 2,070 1,627 27.2% EBIT 2,757 2,824 -2.4% 724 804 -10.0% EBIT margin 41.5% 56.1% 35.0% 49.4% PAT 2,595 2,670 -2.8% 661 781 -15.4% PAT margin 39.0% 53.0% 31.9% 48.0% • Revenue growth in 3Q drive
Slide 27: Palm Oil
Palm Oil WATA Palm Oil Production Settlement Price (RM) [million kg] 7,700 4.4 4.1 7,200 3.6 3.6 6,700 MALAYSIAN RINGGITS - RM 3.0 6,200 2.8 2.7 5,700 5,200 4,700 4,200 3,700 3,200
Slide 28: Dairy
100.00 120.00 140.00 160.00 200.00 220.00 240.00 260.00 180.00 280.00 April-21 May-21 June-21 July-21 Dairy August-21 September-21 October-21 November-21 December-21 January-22 February-22 March-22 April-22 WDL's Avg Milk Price May-22 June-22 July-22 August-22 September-22 October-22 November-22 Dec
Slide 29: Q&A
Q&A
Slide 30: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are based on management’s current expectations and assumptions. Forward-looking statements include predictions of future results or activities and may contain the words “expects,” “believes,” “should,” “will,” “ant
Slide 31: Thank you!
Thank you! For more information, Please visit our Investor Relations page https://www.sunshineholdings.lk/investor/financial-reports
Slide 32: Appendix
Appendix
Slide 33: Historical Trend – Revenue QoQ
Historical Trend – Revenue QoQ Revenue Composition 16,000 14,000 0% 0% 15% 12,000 1% 21% 16% 10,000 0% 41% 8,000 0% 0% 35% 24% 20% 33% 1% 18% 1% 19% 6,000 2% 14% 13% 22% 27% 25% 32% 25% 4,000 34% 50% 44% 44% 2,000 54% 54% 53% 57% 51% 53% - 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY