Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — Q1 FY2023 Earnings Presentation
33 slides from Sunshine's earnings presentation, Aug 9, 2022
Slide 1: 1QFY23 Earnings Webinar
1QFY23 Earnings Webinar Sunshine Holdings PLC 09 Aug 2022
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 • Acquisition of Tea Export Business - Sunshine Tea (Pvt) Ltd in April 2022. Consolidated under Consumer sector w.e.f. 1st April 2022. • Share swap - SUN shares (8.8% stake) offered to Akbar Brothers at LKR 60 per share in exchange for their stake in the Healthcare business –
Slide 4: Group Performance
Group Performance
Slide 5: Group at a Glance
Group at a Glance • LKR 11.7bn in Revenue Revenue Composition - 1QFY23 Other, 1% • LKR 1.6bn PAT Agriculture, 16% +53.7%YoY 31.9% LKR 11.7bn • PATMI of LKR 1.0bn 59.5% +84.6%YoY Consumer, 33% Healthcare, 50% • ROE of 31.7% (22.1% LY) 109.0% 45.9% • Leverage at 24.8% (FY22: 16.3%)
Slide 6: Group – Performance Highlights
Group – Performance Highlights LKR m 1QFY23 1QFY22 Growth % Revenue 11,719 7,348 59.5% EBIT 1,995 1,320 51.2% EBIT margin 17.0% 18.0% PAT 1,599 1,040 53.7% PAT margin 13.6% 14.2% PATMI 1,042 564 84.6% EPS (LKR) 2.12 1.15 84.6% • Group Revenue growth in 1QFY23 compared to LY is predominantly driven b
Slide 7: Healthcare
Healthcare
Slide 8: Healthcare Sector
Healthcare Sector Revenue Split [1QFY23] Total Asset Split [1QFY23] Pharma Manufacturing Pharma Manufacturing Retail (Healthguard) 2% 9% Retail 9% (Healthguard) 5% Medical devices 16% Medical devices 13% Pharma+Distribution Pharma+Distribution 73% 73%
Slide 9: Healthcare – Performance Highlights
Healthcare – Performance Highlights LKR m 1QFY23 1QFY22 Growth % Revenue 5,835 4,000 45.9% EBIT 743 401 85.5% EBIT margin 12.7% 10.0% PAT 432 270 59.9% PAT margin 7.4% 6.8% • Margins improved due to MRP price adjustments on all SKUs, due to the devaluation of Rupee against the USD by more than 75%.
Slide 10: Pharmaceuticals Segment Performance
Pharmaceuticals Pharma Segment Performance • Fastest growing Pharma company in Sri Lanka SHL MS% Market Growth SHL Growth Hemas Growth Emerchemie Growth 40.0% 14.0% 35.0% 12.0% 30.0% 10.0% MARKET SHARE % 25.0% GROWTH % 8.0% 20.0% 6.0% 15.0% 4.0% 10.0% 5.0% 2.0% 0.0% 0.0% Q3/2021 Q4/2019 Q1/2020 Q2/2
Slide 11: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index April 2021 considered as the base (i.e., 100) 250 370 400 355 365 350 197 197 197 Exchange Rate [Bank Selling Rate] 200 299 300 179 179 179 150 141 250 Price Index 201 200 210 203 203 203 203 203 203 200 200 149 109 109 109 109 109 109 109 200 100 100 100 100 1
Slide 12: Sunshine Medical Devices (SMD)
Sunshine Medical Devices (SMD) Sunshine Medical Devices Segment Performance • 40.2% growth vs 1QFY22 in SMD revenue, despite volume contraction • Stock build up at customer due to low offtake • Driven by price increases Market Dynamics 120% 97% 100% 100% 94% 94% 95% 88% 89% 98% 77% 80% 77% 80% 84% 8
Slide 13: Pharma Manufacturing
Pharma Manufacturing Pharma Manufacturing Segment Performance • Revenue contraction of 13.0% YoY compared to 1QFY22 due to lower government sales • GP margins contracted due to product/ customer mix changes and rupee depreciation • Lina Spiro received its first government order and the same will be
Slide 14: Retail (Healthguard)
Retail (Healthguard) Low Q4 Q1 Limited Footfall 508K 404K supply of fuel 21% degrowth Retail Segment Performance Availability Q4 Q1 Low Challenges 88% 79% fill rate • Marginal revenue growth of 0.9% YoY 10% • Reduced footfall degrowth • Less purchases in wellness products adversely impacted Low Q4 Q
Slide 15: Consumer
Consumer
Slide 16: Consumer Sector
Consumer Sector Revenue Split [1QFY23] Total Asset Split [1QFY23] Inter co./other 1% Tea 25% Tea 34% Export Export business business 49% 49% Confectionery Confectionery 25% 17%
Slide 17: Consumer – Performance Highlights
Consumer – Performance Highlights LKR m 1QFY23 1QFY22 Growth % 1QFY23 Export LKR m Contribution Revenue 3,886 1,860 109.0% Revenue 1,885 EBIT 366 100 266.1% EBIT 265 EBIT margin 9.4% 5.4% PAT 224 PAT 296 61 384.0% **Performance is consolidated under Consumer sector w.e.f. 1st PAT margin 7.6% 3.3% Ap
Slide 18: Local Business
Local Business TEA CONFECTIONERY -3.3% 1QFY23 41.2% 1QFY23 -20.6% Volume Growth -36.5% Volume Growth 22.2% Price Growth 122.4% Price Growth • Challenged in volumes • Increase in input cost due to low consumer owing to global price sentiment increase and rupee • First in the market to depreciation ta
Slide 19: Tea – Price Index
Tea – Price Index April 2021 considered as the base (i.e., 100) Tea Volume (million Kg) 1.5 183 1.3 175 1.3 1.2 168 154 146 146 146 1.0 127 117 116 114 109 109 104 104 112 100 100 100 100 100 100 100 105 104 104 100 96 97 99 94 91 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 Tea auction prices Tea - Watawala
Slide 20: Tea – Brand Value Market Share
Tea - Brand Value Market Share 100% 90% 21 24 26 26 25 25 28 28 28 28 25 29 29 80% 70% 26 25 26 27 27 25 23 23 20 60% 24 25 23 22 50% 40% 30% 53 55 51 48 47 48 50 49 49 48 47 48 49 20% 10% 0% Source: CHP, Kantar SCL USL Other • Improvement in value market share in May 2022 is predominantly owing to
Slide 21: Confectionery – Price Index
Confectionery – Price Index April 2021 considered as the base (i.e., 100) Confectionery - number of units sold in millions 250 250 3.0 207 2.8 193 197 2.6 2.3 170 1.8 150 150 150 150 124 117 112 105 105 108 109 105 105 100 102 100 100 100 100 100 100 100 100 100 Sugar price Confectionary - Choco Min
Slide 22: Confectionery – Value Market Share
Confectionery – Value Market share 100% 13% 18% 21% 21% 19% 20% 18% 19% 20% 20% 18% 18% 17% 18% 19% 90% 41% 80% 31% 37% 34% 32% 33% 35% 38% 36% 35% 35% 30% 32% 26% 31% 70% 60% 50% 22% 24% 18% 20% 21% 20% 19% 19% 21% 40% 21% 18% 20% 20% 20% 20% 30% 33% 31% 31% 27% 27% 27% 27% 29% 28% 28% 20% 25% 25%
Slide 23: Export Business
Export Business 1,200 2,000 1,800 1,000 1,600 Revenue (LKR million) 1,400 Quantity (‘000 kg) 800 1,200 600 1,000 800 400 600 400 200 200 - - 1QFY19 1QFY20 1QFY21 1QFY22 1QFY23 Export Quantity ('000 Kg) - RHS Export Revenue (LKR million) - LHS
Slide 24: Agribusiness
Agribusiness
Slide 25: Agri Sector
Agri Sector Revenue Split [1QFY23] Total Asset Split [1QFY23] Dairy 12% Dairy 28% Palm Oil Palm Oil 72% 88%
Slide 26: Agri – Performance Highlights
Agri – Performance Highlights LKR m 1QFY23 1QFY22 Growth % Revenue 1,852 1,404 31.9% EBIT 757 784 -3.5% EBIT margin 40.9% 55.8% PAT 734 724 1.4% PAT margin 39.6% 51.5% • Significant revenue growth YoY is driven by the palm oil segment recording higher NSA for palm oil • Segment revenue growth 1QFY23
Slide 27: Palm Oil
Palm Oil Global Settlement Price (RM) WATA Palm Oil Production 7,700 (million kg) 7,200 4.4 6,700 3.6 Malaysian Ringgits - RM 6,200 5,700 3.0 2.7 2.8 5,200 4,700 4,200 3,700 3,200 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23
Slide 28: Dairy
Dairy WDL's Avg Milk Price WDL's Milk Sales Volume 220.00 (million litres) 1.3 1.3 1.3 200.00 1.2 180.00 1.0 160.00 140.00 120.00 100.00 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23
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
Historical Trend Revenue Growth and Composition [1QFY16 – 1QFY23] Profit After Tax [1QFY16 – 1QFY23] 1,800 16.0% 14,000 7 Year CAGR = 16% 1,600 14.0% 12,000 1,400 12.0% PAT [LKR Millions] 16% 1,200 PAT Margin % 10,000 10.0% 1,000 8.0% LKR million 8,000 33% 800 6.0% 6,000 19% 600 400 4.0% 33% 25% 38%