Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — Q1 FY2025 Earnings Presentation
37 slides from Sunshine's earnings presentation, Aug 5, 2024
Slide 1: 1QFY25 Earnings Webinar
1QFY25 Earnings Webinar Sunshine Holdings PLC 05 August 2024
Slide 2: Housekeeping Announcements
Housekeeping Announcements • The webinar will be recorded and later uploaded to our IR website as well as CSE website for future reference (https://www.sunshineholdings.lk/investor/financial-reports) • All participants will be muted during the presentation • Participants can use the 'Raise Hand' opt
Slide 3: Corporate Announcements
Corporate Announcements • 01st July – Fitch Ratings affirmed Sunshine Holdings at ‘AA+(lka)’ Outlook Stable • 02nd August - Board of Directors of Sunshine Holdings PLC resolved to amalgamate with its fully owned subsidiary, Sunshine Packaging Lanka Limited. As a result, Sunshine Holdings PLC will am
Slide 4: Group Performance
Group Performance
Slide 5: Group at a Glance – 1QFY25
Group at a Glance – 1QFY25 Revenue Composition – 1QFY25 LKR 2.1bn LKR 1.4bn LKR 1.90 Other, 0.0% +2.9% YoY -3.7% YoY +2.3% YoY Agriculture EBIT Earnings EPS 12.4% 14.5% 27.4% 28.2% LKR 37.82 LKR 14.2bn +5.3 pts YoY +10.5 pts YoY +15.9% YoY Healthcare Gearing ROE NBV 32.4% 6.5% 53.1% 19.8% Consumer 1
Slide 6: Group – Performance Highlights
Group – Performance Highlights LKR mn 1QFY25 1QFY24 YoY % 4QFY24 QoQ % Revenue 14,239 13,370 6.5% 13,148 8.3% EBIT 2,073 2,015 2.9% 1,268 63.5% EBIT margin 14.6% 15.1% 9.6% PAT 1,376 1,428 -3.7% 570 141.4% PAT margin 9.7% 10.7% 4.3% PATMI 936 914 2.3% 508 84.2% EPS (LKR) 1.90 1.86 2.3% 1.03 84.2% •
Slide 7: Movement in Revenue & EBIT
Movement in Revenue & EBIT Revenue Composition – Revenue QoQ 16 14 15% 13% 15% 12 15% 16% 14% 21% 21% Revenue LKR bn 16% 10 34% 36% 32% 41% 37% 34% 8 33% 35% 35% 24% 20% 18% 6 19% 22% 27% 25% 25% 4 51% 51% 53% 50% 44% 44% 47% 44% 51% 2 54% 54% 53% 57% 0 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY
Slide 8: Healthcare
Healthcare
Slide 9: Sunshine Healthcare Lanka overview
Sunshine Healthcare Lanka (SHL) is Sri Lanka’s only fully integrated healthcare company encompassing the entire pharma value chain Government and Local market Manufacturing and R&D Revenue Split 1QFY25 Sri Lanka’s first facility for Respiratory Care Manufacturing Capsules Tablets Nasal Spray Vento-
Slide 10: Healthcare Sector – Highlights
Healthcare Sector – Highlights Sector Highlights 7,526 7,197 7,563 6,736 6,314 Healthcare sector revenue for 1QFY25 increased by 19.8% YoY, driven by topline growth in both the pharmaceutical agency and manufacturing segments This growth contributed to an improved EBIT margin of 15.1% for 1,305 1QFY
Slide 11: Pharmaceutical Agency – Performance Highlights
Pharmaceutical Agency – Performance Highlights Business Highlights 4,583 4,033 4,055 3,649 The pharmaceutical segment’s revenue grew by 14.1% YoY, driven 3,553 by a significant volume growth of 27.9% YoY during the period During 1Q 2024, while the market experienced a growth of 4.1%, the company’s p
Slide 12: Pharmaceutical Distribution – Performance Highlights
Pharmaceutical Distribution – Performance Highlights Business Highlights 4,284 3,876 4,045 4,062 3,443 The distribution segment’s revenue grew by 18.0% YoY, driven by a significant volume growth of 28.5% YoY during the quarter All six distribution centers were fully functional during Q1FY25 1QFY24 2
Slide 13: Medical Devices – Performance Highlights
Medical Devices – Performance Highlights Business Highlights 1,681 1,453 1,340 The medical devices segment saw a contraction of 20.4% YoY due to the lack of one-off tender sales in 1QFY25 1,045 1,067 Excluding tender sales, the segment’s revenue grew 6.4% YoY 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 Reven
Slide 14: Pharmaceutical Manufacturing – Performance Highlights
Pharmaceutical Manufacturing – Performance Highlights Business Highlights 1,128 During the 1QFY25, pharmaceutical manufacturing business, 773 achieved a remarkable revenue growth of 104.4% YoY, driven by 607 increased capacity utilization (90% in 1QFY25) at the Metered Dose 552 502 Inhaler (MDI) pla
Slide 15: Retail (Pharmacy) – Performance Highlights
Retail (Pharmacy) – Performance Highlights Business Highlights 669 The retail segment, Healthguard Pharmacy, witnessed a 10.2% YoY 629 626 increase in revenue, fueled by improvements in both value and 608 volume 568 Within retail, the pharmaceutical category recorded growth in both value and volume,
Slide 16: Consumer Brands
Consumer Brands
Slide 17: Sunshine Consumer overview
Sunshine Consumer, Market leader in branded tea and sugar confectionery Brand Portfolio Tea Revenue Split 1QFY25 Largest branded tea company in Sri Lanka – 45% market share Exports Catering to three distinct need and value segments, the Tea portfolio comprising of three brands: Zesta, Watawala and R
Slide 18: Consumer Sector – Highlights
Consumer Sector – Highlights Sector Highlights 5,136 4,999 4,697 The Consumer Brands sector, encompassing both export and 4,492 4,609 domestic businesses, reported a marginal revenue decrease of 1.9% YoY. However, revenue increased 2.6% compared to the previous quarter, reflecting improvements follo
Slide 19: Tea – Performance Highlights
Tea – Performance Highlights Business Highlights 3,042 Revenue from the Branded Tea businesses declined 11.3% YoY to 2,527 2,648 LKR 2,242 mn in 1QFY25 2,260 2,242 Despite challenging consumer sentiment, the tea brands Watawala Thei and Ran Kahata demonstrated resilience with mid teen volume growth
Slide 20: Confectionery – Performance Highlights
Confectionery – Performance Highlights 747 Business Highlights 701 692 Revenue from the Confectionery businesses declined by 37.1% YoY, 538 due to a drop in sales volume during the period. 441 Confectionery segment volume was contracted by 36.0% YoY as this impulse category was affected by poor cons
Slide 21: Exports – Performance Highlights
Exports – Performance Highlights Business Highlights 1,926 The export business recorded a revenue growth of 31.1% YoY to 1,658 1,693 reach LKR 1,926mn 1,469 1,348 The recovery of export volumes, driven by heightened demand from key clients and a reduction in tea prices, are key contributors to the i
Slide 22: Agribusiness
Agribusiness
Slide 23: Watawala Plantations overview
Watawala Plantations, primarily engages in the cultivation, manufacturing and sale of palm oil and dairy farming Palm Oil Revenue Split 1QFY25 A land extent of ~3,400 Ha under palm oil cultivation Dairy 16% The first in South Asia to receive RSPO certification for sustainable oil palm plantation Pos
Slide 24: Agribusiness – Highlights
Agribusiness – Highlights Sector Highlights 2,357 2,241 2,065 The Agribusiness sector reported revenue of LKR 2.1 billion in 1,885 1,838 1QFY25, reflecting a 12.1% YoY contraction, stemming from a 13.8% YoY contraction in the palm oil business GP margin for 1QFY25 improved to 46.4% from 42.0% last y
Slide 25: Palm Oil – Performance Highlights
Palm Oil – Performance Highlights Business Highlights 2,017 The top line of the palm oil segment was impacted by the reduction 1,893 in palm oil prices and volume of oil sold in 1QFY25. This resulted in 1,739 1,485 1,472 a reduction of the gross profit margin to 52.6% in 1QFY25, compared to 56.5% in
Slide 26: Dairy – Performance Highlights
Dairy – Performance Highlights Business Highlights 400 366 The dairy business recorded a revenue of LKR 326 million cf. LKR 340 348 326 340 million during the same period last year Profitability improvements in Dairy Business supported by the reduction in feed cost during the period The farm had a h
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: Sunshine Pharmaceuticals – Market Dynamics
Sunshine Pharmaceuticals – Market Dynamics During 1Q2024, while the market experienced a growth of 4.1%, the company’s performance remained stable 40% 13% 13.1% 13.1% 13.1% 13.1% 30.0% 29.0% 13% 30% 27.9% 13% 20% 18.8% 18.3% 14.1% 13% 10% 13% 4.9% 12.7% 13% 0% Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 1QFY24
Slide 30: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index 190 380 181 181 181 181 181 181 181 181 181 181 181 181 180 370 370 370 370 370 170 365 365 365 360 362 362 350 160 152 152 152 152 152 152 152 152 152 152 152 152 152 340 150 336 330 140 325 326 320 322 322 323 324 321 130 319 310 313 120 309 306 304 300 110 2
Slide 31: Sunshine Medical Devices – Market Dynamics
Sunshine Medical Devices – Market Dynamics 91% 90% 89% 89% 86% 85% 84% 88% 86% 86% 84% 79% 80% 77% 77% 77% 77% 74% 68% 69% 3QFY23 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 Hospital Occupancy Lab Tests Operation Theaters
Slide 32: Market Share % – Tea
Brand Value Market Share (%) – Tea 100 18 15 17 15 17 16 18 16 17 16 17 90 20 19 20 22 24 23 23 23 26 26 28 28 32 30 4 5 80 7 6 5 6 6 6 9 4 5 8 9 10 8 8 9 9 9 70 9 9 8 7 7 6 60 43 Market Share % 40 41 39 44 41 45 48 45 42 47 50 46 47 49 49 46 46 46 45 45 45 40 45 46 44 45 30 20 38 37 39 37 35 32 33
Slide 33: Market Share % – Confectionary
Brand Value Market Share (%) – Confectionary 100 90 22 23 23 23 24 23 23 23 23 24 23 22 22 26 80 70 25 23 22 21 21 22 21 21 21 24 24 22 22 20 Market Share % 60 50 40 37 37 35 36 36 37 38 37 35 35 38 35 36 36 30 20 10 17 17 18 18 18 18 18 19 20 19 18 20 19 20 0 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-
Slide 34: Price Index – Tea and Confectionary
Price Index – Tea and Confectionary Tea Price Index Confectionery Price Index 230 214 214 214 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 210 203 203 203 203 201 199 200 200 193 193 193 164 188 189 191 159 190 179 179 179 177 176 151 172 17
Slide 35: Agribusiness – Price Movement
Agribusiness – Price Movement Settlement Price (RM) WDL's Avg Milk Price (LKR) 5,000 263 262 4,500 261 MALAYSIAN RINGGITS – RM 3,996 4,000 260 260 259 3,500 3,331 258 258 3,000 257 2,500 256 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 June-23 August-23 October-23 December-23 February-24 April-2
Slide 36: 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 37: Thank you!
Thank you! For more information, Please visit our Investor Relations page https://www.sunshineholdings.lk/investor/financial-reports