Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — Q2 FY2024 Earnings Presentation
29 slides from Sunshine's earnings presentation, Nov 14, 2023
Slide 1: 2QFY24 Earnings Webinar
2QFY24 Earnings Webinar Sunshine Holdings PLC 14 November 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 • 19th July 2023 - Final dividend payment of LKR 1.15 for FY23. • 10th November 2023 - Approved interim dividend of LKR 1.00 for FY24. • Sunshine Holdings has been certified as a Great Place to Work® in Sri Lanka for 2023. • Mr. Binesh Pananwala resigned as the Chief Executiv
Slide 4: Group Performance
Group Performance
Slide 5: Group at a Glance – 2QFY24
Group at a Glance – 2QFY24 • LKR 14.8bn Revenue • LKR 2.8bn EBIT +20.3%YoY • LKR 2.2bn PAT +42.1%YoY • Leverage at 24.0% (FY23: 27.1%)
Slide 6: Group – Performance Highlights
Group – Performance Highlights (LKR millions) LKR m 2QFY24 2QFY23 Growth (YoY) % 1QFY24 Growth (QoQ) % Revenue 14,787 13,209 11.9% 13,370 10.6% EBIT 2,811 2,336 20.3% 2,015 39.5% EBIT margin 19.0% 17.7% 15.1% PAT 2,209 1,554 42.1% 1,426 54.9% PAT margin 14.9% 11.8% 10.7% PATMI 1,648 893 84.5% 915 80
Slide 7: Historical Trend – Revenue QoQ
Historical Trend – Revenue QoQ Revenue Composition 16 14 15% 15% 16% 12 21% 21% Revenue LKR bn 16% 10 34% 41% 37% 8 33% 35% 35% 24% 20% 18% 14% 19% 6 25% 22% 27% 32% 25% 4 51% 50% 44% 44% 47% 44% 2 53% 54% 54% 53% 57% 0 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 Hea
Slide 8: Healthcare
Healthcare
Slide 9: Healthcare Sector
Healthcare Sector Revenue Split [2QFY24] Total Asset Split [2QFY24] Pharma Manufacturing Pharma Manufacturing 8% 16% Retail (Healthguard) 9% Retail (Healthguard) 4% Medical devices Pharma+Distribution 22% Medical devices 54% 26% Pharma+Distribution 61%
Slide 10: Healthcare – Performance Highlights
Healthcare – Performance Highlights (LKR millions) LKR m 2QFY24 2QFY23 Growth (YoY) % 1QFY24 Growth (QoQ) % Revenue 7,526 5,776 30.3% 6,314 19.2% EBIT 1,162 762 52.5% 936 24.1% EBIT margin 15.4% 13.2% 14.8% PAT 852 338 152.1% 493 72.8% PAT margin 11.3% 5.9% 7.8% • In 2QFY24, the EBIT margin improved
Slide 11: Sunshine Pharmaceuticals
Sunshine Pharmaceuticals During 2QFY24, • Market growth at 29.9% YoY • Sunshine recorded growth of 26.1% 60.00% 13.1% 13.1% 13.10% 13.0% 49.3% 50.00% 13.00% 40.00% 33.7% 12.9% 30.0% 29.0% 30.00% 12.90% 20.00% 18.8% 12.80% 10.00% 12.7% 0.00% 12.70% -10.00% Q2FY23 Q3FY23 Q4FY23 Q1 FY24 Q2 FY24 12.60%
Slide 12: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index Dec 2021 considered as the base (i.e., 100) 190 400 181 181 181 181 181 181 181 181 181 181 181 181 181 181 380 180 360 365 370 370 370 370 365 365 365 362 362 170 355 340 336 320 160 322 152 319 152 323 152 322 152 300 309 150 299 16% MRP 296 280 Reduction 140
Slide 13: Sunshine Medical Devices
Sunshine Medical Devices • 2QFY24 witnessed a 61% YoY revenue growth driven by a volume growth of 42% YoY. Market Dynamics 100% 95% 91% 89% 88% 89% 98% 84% 86% 85% 81% 84% 66% 76% 77% 77% 80% 77% 77%68% 69% 77% 77% 71%61% 74% 59% 62% 40% 43% 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1Q
Slide 14: Lina - Pharma Manufacturing
Lina - Pharma Manufacturing • During the 2QFY24, the revenue grew 1.6x reaching LKR 503m.
Slide 15: Healthguard Pharmacy - Retail
Healthguard Pharmacy - Retail Retail Segment Performance • Strong BC growth driven by promotions and improved availability • 2QFY24 Revenue grew by 25.0% YoY • Wellness Product purchases has helped improve the GP margin FY23 FY24 KPI (YoY) Q1 Q2 Q3 Q4 Q1 Q2 Same store sales (SSS) 0.6% -13.4% 12.9% -
Slide 16: Consumer
Consumer
Slide 17: Consumer Sector – Performance Highlights
Consumer Sector – Performance Highlights (LKR millions) LKR m 2QFY24 2QFY23 Growth (YoY) % 1QFY24 Growth (QoQ) % Revenue 4,999 4,681 6.8% 4,697 6.4% EBIT 782 334 134.1% 320 144.4% EBIT margin 15.6% 7.1% 6.8% PAT 472 197 139.6% 181 160.8% PAT margin 9.4% 4.2% 3.9% • Revenue for 2QFY24, driven by the
Slide 18: Consumer Sector – Revenue & Volumes
Consumer Sector – Revenue & Volumes KPIs FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Volume Tea (Local) Revenue growth -4% 10% 41% 84% 93% 77% Volume (Kgs '000) 1,009 974 1,260 1,095 1,053 1,157 YoY Growth -21% -26% -16% -10% 4% 19% Confectionary Revenue growth 33% 107% 73% 14% 7% -31% Volume (Kgs '000) 721 922 765
Slide 19: Brand Value Market Share (%) – Tea
Brand Value Market Share (%) – Tea 100 90 17 15 17 15 17 20 16 18 16 16 16 17 17 18 21 80 70 Market Share % 44 40 43 41 39 60 42 41 45 48 47 45 46 47 50 49 50 40 30 32 33 37 37 39 38 35 32 31 31 33 29 24 23 20 24 10 9 7 6 5 7 5 5 6 6 8 8 9 10 0 4 4 Maliban Dairy & Agri(pvt) Ltd Unilever Lipton Ceylo
Slide 20: Brand Value Market Share (%) – Confectionary
Brand Value Market Share (%) – Confectionary 100 90 16 18 20 21 22 21 21 23 22 22 23 23 24 24 80 70 32 32 26 Market Share % 31 30 28 27 26 26 25 24 24 23 22 60 50 40 31 30 28 30 30 33 34 36 35 36 36 35 36 36 30 20 10 21 20 21 20 21 19 17 17 17 17 17 18 18 18 0 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-
Slide 21: Price Index – Tea and Confectionary
Price Index – Tea and Confectionary March 2022 considered as the base (i.e., 100) 230 210 214 214 214 167167167167167167167167167167167167167167167167167 190 201 203 199 200 200 191 188 189 191 145 170 179 179 179 177 176 140 172 172 172 132133 150 160 127128 123 124126 118 119 119 130 131 131 131 1
Slide 22: Sunshine Tea - Exports
Sunshine Tea - Exports 1,200 2,500 1,000 2,000 800 Export Revenue Export Qty 1,500 600 1,000 400 500 200 - - 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 1QFY24 2QFY24 Export Quantity ('000 Kg) - RHS Export Revenue (LKR million) - LHS • The revenue contracted 20% YoY mainly due to the adverse volume impact of
Slide 23: Agribusiness
Agribusiness
Slide 24: Agribusiness – Performance Highlights
Agribusiness– Performance Highlights (LKR millions) LKR m 2QFY24 2QFY23 Growth (YoY) % 1QFY24 Growth (QoQ) % Revenue 2,241 2,727 -17.8% 2,357 -4.9% EBIT 907 1,276 -28.9% 809 12.1% EBIT margin 40.5% 46.8% 34.3% PAT 878 1,230 -28.6% 751 n/m PAT margin 39.2% 45.1% 31.9% • Subsegment revenue growth 2QFY
Slide 25: KPI – Agri Business
KPI – Agri Business KPIs FY23 FY24 Q1 Q2 Q3 Q4 Q1 Q2 Volume growth (%YoY): CPO Production -22% -7% 20% 26% 50% 9% Milk Production -19% 5% 9% 5% 19% 4% Price growth (% YoY): Average palm oil price 70% 41% -1% 14% -17% -28% Average milk price 57% 78% 87% 68% 29% 15%
Slide 26: Palm Oil and Milk Price Trends
3,300 3,500 3,900 4,100 4,300 4,500 3,100 3,700 8-Aug-22 8-Sep-22 8-Oct-22 8-Nov-22 Source: Malaysian contract price 8-Dec-22 8-Jan-23 Palm Oil 8-Feb-23 8-Mar-23 8-Apr-23 8-May-23 Settlement Price (RM) 8-Jun-23 8-Jul-23 8-Aug-23 8-Sep-23 8-Oct-23 100.00 150.00 200.00 300.00 250.00 50.00 0.00 April-2
Slide 27: Q&A
Q&A
Slide 28: 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 29: Thank you!
Thank you! For more information, Please visit our Investor Relations page https://www.sunshineholdings.lk/investor/financial-reports