Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — Q4 FY2023 Earnings Presentation
35 slides from Sunshine's earnings presentation, May 31, 2023
Slide 1: 4QFY23 Earnings Webinar
4QFY23 Earnings Webinar Sunshine Holdings PLC 31 May 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 • April 2022 – Acquisition of Sunshine Tea for LKR 1.44bn • May 2022 - Share swap - 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 •
Slide 4: Corporate Governance
Corporate Governance Corporate Governance Framework 7 INE Directors 2 Non-Executive 2 Executive Audit Committee Nomination and Remuneration Committee Investment Committee including Chairman Directors Directors Related Party Transactions Review Committee • Director appointments during FY23: Risk Revi
Slide 5: Group Performance
Group Performance
Slide 6: Group at a Glance – 4QFY23
Group at a Glance – 4QFY23 • LKR 13.3bn in Revenue • LKR (162m) PAT • PATMI of LKR 57m -93.7%YoY • Leverage at 27.1% (FY22: 22.5%)
Slide 7: Group – Performance (Reported)
Group – Performance (Reported) (LKR millions) LKR m FY23 FY22 Growth % 4QFY23 4QFY22 Growth % Revenue 51,887 32,166 61.3% 13,326 8,057 65.4% EBIT 7,001 5,706 22.7% 1,179 1,255 -6.1% EBIT margin 13.5% 17.7% 8.8% 15.6% EBITDA 8,073 6,584 22.6% 1,576 1,511 4.3% PAT 3,617 4,997 -27.6% (162) 1,420 n/m PA
Slide 8: Group – Performance (Adjusted)
Group – Performance (Adjusted) LKR m FY23 FY22 Growth % 4QFY23 4QFY22 Growth % Reported Profit After Tax 3,617 4,997 -27.6% (162) 1,420 n/m Impairment of Goodwill 354 50 608.6% 144 50 188.6% Deferred tax 680 (120) n/m 475 (135) n/m Adjusted Profit After Tax 4,651 4,927 -5.6% 458 1,335 -65.7% • PAT f
Slide 9: Healthcare
Healthcare
Slide 10: Healthcare Sector
Healthcare Sector Revenue Split [FY23] Total Asset Split [FY23] Pharma Manufacturing Pharma Manufacturing 5% 14% Retail (Healthguard) 9% Retail (Healthguard) 6% Medical devices Pharma+Distributi 18% on 51% Medical devices 29% Pharma+Distri bution 68%
Slide 11: Healthcare – Performance Highlights
Healthcare – Performance Highlights LKR m FY23 FY22 Growth % 4QFY23 4QFY22 Growth % Revenue 23,924 17,501 36.7% 6,284 4,555 38.0% EBIT 2,973 1,631 82.3% 885 378 134.1% EBIT margin 12.4% 9.3% 14.1% 8.3% PAT 1,209 1,070 13.0% 334 224 49.1% PAT margin 5.1% 6.1% 5.3% 4.9% Adjusted PAT 1,535 1,120 37.1%
Slide 12: Sunshine Pharmaceuticals Market Share Market Growth
Sunshine Pharmaceuticals • Market growth at 34.3% YoY • Sunshine recorded growth of 39.1% Last 10 Quarter MAT Performance of Top 03 Distributors 60.0% 13.5% 50.0% 13.0% Market Growth Market Share 40.0% 12.5% 30.0% 12.9% 12.9% 13.0% 12.9% 12.9% 12.0% 20.0% 12.6% 12.8% 12.4% 12.5% 10.0% 11.8% 11.5% 0.
Slide 13: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index April 2021 considered as the base (i.e., 100) 400 370 370 370 370 365 365 365 362 362 355 365 350 336 299 300 250 200 200 201 200 210 203 203 203 203 203 203 197 197 197 197 197 197 197 197 197 197 197 197 200 141 150 179 179 179 179 179 179 179 179 179 179 179
Slide 14: Sunshine Medical Devices
Sunshine Medical Devices • FY23 witnessed a 38.9% revenue growth despite volume contraction of 23% YoY. • 4QFY23 revenue increased by 25.1% cf. 4QFY22. Market Dynamics 120% 100% 97% 100% 98% 94% 94% 95% 91% 84% 88% 89% 84% 86% 80% 81% 77% 80% 77% 76% 77% 71% 74% 69% 65% 65% 66% 68% 60% 57% 61% 59% 6
Slide 15: Healthguard Pharmacy - Retail
Healthguard Pharmacy - Retail Low 4QFY22 4QFY23 Limited Footfall 269K 211K supply of fuel 22% degrowth Retail Segment Performance • 4QFY23 Revenue de-growth of 6.0% YoY Improved Q3 Q4 Availability 84% 85% • Reduced footfall • Less purchases in wellness products adversely impacted the GP margin Drop
Slide 16: Lina - Pharma Manufacturing
Lina - Pharma Manufacturing • Revenue for FY23 was LKR 1.026 Bn – Highest ever sales (LKR 615mn LY) • New MDI plant fully operational and commenced supplies to Ministry of Health; looking to expand capacity to meet further demand
Slide 17: Consumer
Consumer
Slide 18: Consumer Sector
Consumer Sector Revenue Split [FY23] Total Asset Split [FY23] Inter co./other -13% Export Tea business 40% Tea 42% 35% Export business 35% Confectionery 17% Confectionery 18%
Slide 19: Consumer – Performance Highlights
Consumer – Performance Highlights (LKR millions) LKR m FY23 FY22 Growth % 4QFY23 4QFY22 Growth % Revenue 19,011 8,069 135.6% 4,921 2,042 141.0% EBIT 1,188 578 105.6% 283 180 57.4% EBIT margin 6.2% 7.2% 5.8% 8.8% PAT 524 479 9.4% 26 248 -89.5% PAT margin 2.8% 5.9% 0.5% 12.2% Adjusted PAT 628 449 39.8
Slide 20: Sunshine Consumer - Brands
Sunshine Consumer - Brands TEA CONFECTIONERY 85.1% 4QFY23 15.0% 4QFY23 -9.6% Volume Growth -28.4% Volume Growth 105% Price Growth 61% Price Growth Challenged in volumes due to; • Growth owing to price • Low consumer sentiment increases. • Outlets reducing stocks
Slide 21: Tea – Price Index
Tea – Price Index April 2021 considered as the base (i.e., 100) Tea Volume in '000kg 250 1.6 1.5 236239 234 230 225 221 222224 1.4 1.3 208 1.3 223223 1.2 210 1.2 1.1 187 1.0 190 175 200200200 1.0 1.0 168 170 154 0.8 150 146146146146146146 0.6 130 116114117 105109109 127 0.4 110 97 99 94 112 90 10010
Slide 22: Confectionery – Price Index
Confectionery – Price Index April 2021 considered as the base (i.e., 100) 270 Confectionery - number 250250250250250250250250250250250 250 of units sold 3.5 230 3.0 210 3.0 216217 2.6 210 190 200 203 202 2.5 2.3 2.3 2.3 189191192190192192 170 2.0 1.8 1.8 150150150 170150 150 1.5 130 1.0 110 100124 1
Slide 23: Brand Value Market Share - Tea
Brand Value Market Share - Tea Source: Peppercube RMS
Slide 24: Brand Value Market Share – Confectionary
Brand Value Market Share – Confectionary Source: Peppercube RMS
Slide 25: Sunshine Tea - Exports
Sunshine Tea - Exports 1,200 2,500 1,000 2,000 800 1,500 000 Kgs LKRm 600 1,000 400 500 200 - - 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 Export Quantity ('000 Kg) - RHS Export Revenue (LKR million) - LHS
Slide 26: Agribusiness
Agribusiness
Slide 27: Agri Sector
Agri Sector Revenue Split [FY23] Total Asset Split [FY23] Dairy Inter co./Other 14% -5% Dairy 30% Palm Oil 65% Palm Oil 86%
Slide 28: Agribusiness– Highlights
Agribusiness– Highlights LKR m FY23 FY22 Growth % 4QFY23 4QFY22 Growth % Revenue 8,768 6,475 35.4% 2,119 1,442 47.0% EBIT 2,931 3,347 -12.4% 235 523 -55.0% EBIT margin 33.4% 51.7% 11.1% 36.3% PAT 2,332 3,458 -32.6% (203) 788 -125.8% PAT margin 26.6% 53.4% -9.6% 54.6% Adjusted PAT 2,854 3,336 -14.5%
Slide 29: Palm Oil
Palm Oil Palm Oil Production [million Settlement Price (MYR/ton) kg] 5.0 7,700 4.4 4.5 4.1 7,200 4.0 3.6 6,700 3.5 3.4 3.0 6,200 3.0 2.7 2.8 5,700 2.5 5,200 2.0 1.5 4,700 1.0 4,200 0.5 3,700 - 3,200
Slide 30: Dairy
0.00 150.00 200.00 300.00 100.00 250.00 50.00 July-21 August-21 September-21 Dairy October-21 November-21 December-21 January-22 February-22 March-22 April-22 May-22 June-22 WDL's Avg Milk Price July-22 August-22 September-22 October-22 November-22 December-22 January-23 February-23 March-23 1.2 1.0
Slide 31: Q&A
Q&A
Slide 32: 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 33: Thank you!
Thank you! For more information, Please visit our Investor Relations page https://www.sunshineholdings.lk/investor/financial-reports
Slide 34: Appendix
Appendix
Slide 35: Historical Trend – Revenue QoQ
Historical Trend – Revenue QoQ Revenue Composition 16,000 14,000 15% 16% 12,000 21% 16% 10,000 41% 37% 8,000 33% 35% 24% 20% 18% 14% 19% 6,000 13% 25% 22% 27% 32% 25% 4,000 34% 50% 44% 44% 47% 2,000 53% 54% 54% 53% 57% 51% - 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 3QFY23 4QFY23 Healt