Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — Q2 FY2025 Earnings Presentation
37 slides from Sunshine's earnings presentation, Nov 13, 2024
Slide 1: 2QFY25 Earnings Webinar
2QFY25 Earnings Webinar Sunshine Holdings PLC 13 November 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 • 03rd October – Successful completion of the International Finance Corporation's LKR 3.2bn investment in Sunshine Healthcare Lanka Limited (SHL). Following this investment, the Company now holds an 85.27% shareholding in SHL, with the remaining 14.73% held by IFC • Watawala
Slide 4: Group Performance
Group Performance
Slide 5: Group at a Glance – 2QFY25
Group at a Glance – 2QFY25 Revenue Composition – 2QFY25 LKR 2.6bn LKR 1.5bn LKR 2.51 -9.0% YoY -29.9% YoY -25.2% YoY Other, 0.0% Agriculture EBIT Earnings EPS 2.1% 13.9% 27.8% 23.4% LKR 40.23 +3.8 pts YoY +3.4 pts YoY +12.1% YoY LKR 15.8bn Gearing ROE NBV Healthcare 32.0% 7.1% 54.2% 13.9% Consumer 1
Slide 6: Group – Performance Highlights
Group – Performance Highlights LKR mn 2QFY25 2QFY24 YoY % 1QFY25 QoQ % Revenue 15,812 14,766 7.1% 14,239 11.0% EBIT 2,557 2,811 -9.0% 2,073 23.3% EBIT margin 16.2% 19.0% 14.6% PAT 1,548 2,208 -29.9% 1,376 12.5% PAT margin 9.8% 15.0% 9.7% PATMI 1,234 1,649 -25.2% 936 31.9% EPS (LKR) 2.51 3.35 -25.2%
Slide 7: Movement in Revenue & EBIT
Movement in Revenue & EBIT Revenue Movement [LKR Million] EBIT Movement [LKR Million] 425 1,043 58 15,812 (48) (7) 2,811 14,766 (453) 2,557 (173) (52) 2QFY24 Revenue Healthcare Consumer Brands Agriculture Other 2QFY25 Revenue 2QFY24 EBIT Healthcare Consumer Brands Agriculture Other 2QFY25 EBIT Reven
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 2QFY25 Sri Lanka’s first facility for Respiratory Care Manufacturing Capsules Tablets Nasal Spray Vento-
Slide 10: Healthcare Sector – Highlights
Healthcare Sector – Highlights Sector Highlights 8,569 Healthcare sector revenue for 2QFY25 increased by 13.9% YoY, 7,526 7,197 7,563 6,736 driven by topline growth in both the pharmaceutical agency and manufacturing segments This growth contributed to an improved EBIT margin of 18.5% for 2QFY25, up
Slide 11: Pharmaceutical Agency – Performance Highlights
Pharmaceutical Agency – Performance Highlights Business Highlights 5,385 4,583 The pharmaceutical segment’s revenue grew by 17.5% YoY, driven 4,033 4,055 by a volume growth of 8.1% YoY during the period 3,649 During 2Q 2024, while the market experienced a growth of 3.1%, the company’s performance re
Slide 12: Pharmaceutical Distribution – Performance Highlights
Pharmaceutical Distribution – Performance Highlights Business Highlights 5,021 4,284 The distribution segment’s revenue grew by 17.2% YoY, driven by a 3,876 4,045 4,062 significant volume growth of 21% YoY during the quarter All six distribution centers were fully functional during 2QFY25 2QFY24 3QF
Slide 13: Medical Devices – Performance Highlights
Medical Devices – Performance Highlights Business Highlights 1,681 1,453 The medical devices segment saw a contraction of 31.2% YoY due 1,157 to the lack of one-off tender sales in 2QFY25 1,045 1,067 Excluding tender sales, the segment’s revenue grew 10.8% YoY 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 Reve
Slide 14: Pharmaceutical Manufacturing – Performance Highlights
Pharmaceutical Manufacturing – Performance Highlights Business Highlights 1,128 1,095 During the 1QFY25, pharmaceutical manufacturing business, achieved a remarkable revenue growth of 118.0% YoY, driven by 773 increased capacity utilization (75% in 2QFY25) at the Metered Dose 607 Inhaler (MDI) plant
Slide 15: Retail (Pharmacy) – Performance Highlights
Retail (Pharmacy) – Performance Highlights Business Highlights 669 666 The retail segment, Healthguard Pharmacy, witnessed a 9.5% YoY increase in revenue, fueled by improvements in both value and volume 629 626 608 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 2QFY25 Largest branded tea company in Sri Lanka – 48% market share* *Peppercube Retail Measurement Survey Exports Catering to three distinct need and value segments, the Tea portfolio comprising
Slide 18: Consumer Sector – Highlights
Consumer Sector – Highlights Sector Highlights 4,999 5,136 5,056 4,609 The Consumer Brands sector, including both export and domestic 4,492 businesses, posted a modest 1.1% YoY revenue growth, with stronger momentum quarter-over-quarter, increasing by 9.7% EBIT margins in 2QFY25 continued to face pr
Slide 19: Tea – Performance Highlights
Tea – Performance Highlights Business Highlights 3,042 Revenue from the Branded Tea businesses declined 8.3% YoY to LKR 2,648 2,429 2,249 mn in 2QFY25 2,260 2,242 Despite challenging consumer sentiment, the tea brands Watawala Thei and Ran Kahata demonstrated resilience with volume growth YoY, despi
Slide 20: Confectionery – Performance Highlights
Confectionery – Performance Highlights Business Highlights 747 692 Revenue from the Confectionery businesses declined by 14.9% YoY, 589 due to a drop in sales volume during the period. 538 441 While the Confectionery segment saw a YoY volume contraction due to weakened consumer sentiment post-VAT in
Slide 21: Exports – Performance Highlights
Exports – Performance Highlights Business Highlights 2,038 1,926 The export business recorded a revenue growth of 22.9% YoY to 1,658 1,693 reach LKR 2,038mn 1,348 The export business continued to perform strongly, with the recovery in export volumes driven by increased demand from key clients 2QFY24
Slide 22: Agribusiness
Agribusiness
Slide 23: Watawala Plantations overview
Watawala Plantations, primarily engages in palm oil and dairy farming Palm Oil Revenue Split 2QFY25 A land extent of ~3,400 Ha under palm oil cultivation Dairy 13% The first in South Asia to receive RSPO certification for sustainable oil palm plantation Positioning – largest oil palm cultivator in S
Slide 24: Agribusiness – Highlights
Agribusiness – Highlights Sector Highlights 2,241 2,193 2,065 The Agribusiness sector reported revenue of LKR 2.2bn in 2QFY25, 1,885 1,838 reflecting a 2.2% YoY contraction, stemming from a 13.8% YoY contraction in the palm oil business GP margin for 2QFY25 improved to 52.1% from 45.5% last year 907
Slide 25: Palm Oil – Performance Highlights
Palm Oil – Performance Highlights Business Highlights 1,893 1,902 1,739 The palm oil segment maintained similar revenue levels compared to 1,485 1,472 last year, supported by marginal price increases despite a decline in sales volume The business achieved a net profit margin of 34.4% for the period
Slide 26: Dairy – Performance Highlights
Dairy – Performance Highlights Business Highlights 400 366 348 326 The dairy business recorded a revenue of LKR 291m cf. LKR 400m 291 in the same period last year During 2QFY25, topline and profitability were impacted by lower milk selling prices and a decline in milk sales volume 74 The farm had a
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: Sunshine Pharmaceuticals – Market Dynamics
Sunshine Pharmaceuticals – Market Dynamics During 2Q2024, while the market experienced a growth of 3.1%, the company’s performance remained stable 35% 14% 30.0% 29.0% 30% 13.1% 27.9% 13.1% 13.1% 25% 13.0% 13% 20% 18.8% 18.3% 12.7% 17.5% 14.1% 15% 13% 10% 8.1% 4.9% 5% 12% 0% 1QFY24 2QFY24 3QFY24 4QFY
Slide 30: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index 190 380 181 181 181 181 181 181 181 181 181 180 370 370 170 365 365 365 360 362 362 350 160 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 152 340 150 336 330 140 325 326 320 322 322 323 324 321 130 319 310 313 120 309 306 304 304 300 299 300 301 3
Slide 31: Sunshine Medical Devices – Market Dynamics
Sunshine Medical Devices – Market Dynamics 91% 90% 89% 88% 86% 85% 88% 86% 86% 84% 82% 79% 80% 77% 77% 77% 77% 74% 70% 69% 4QFY23 1QFY24 2QFY24 3QFY24 4QFY24 1QFY25 2QFY25 Hospital Occupancy Lab Tests Operation Theaters Source – Management Information
Slide 32: Brand Value Market Share (%) – Tea
Brand Value Market Share (%) – Tea 100.0 15 17 16 18 16 17 16 17 90.0 20 22 19 20 24 23 23 23 26 26 28 28 30 27 27 27 4 32 80.0 5 6 5 6 6 4 5 8 9 10 8 8 9 9 9 70.0 9 9 6 6 6 8 7 7 6 60.0 43 41 39 41 45 48 47 45 50.0 46 47 49 49 46 46 46 45 47 45 45 47 48 40.0 45 46 44 45 30.0 20.0 38 37 39 35 32 32
Slide 33: Brand Value Market Share (%) – Confectionary
Brand Value Market Share (%) – Confectionary 100 90 23 24 23 23 23 23 24 23 22 22 22 22 22 26 80 70 19.0 22.0 21.0 21.0 22.0 21.0 21.0 20.7 20.7 20.5 23.0 22.0 22.0 20.3 Market Share % 60 50 40 37 37 38.0 36.6 35.0 36 36 37 38 37 35 35 38 35 30 20 10 18 18 18 18 19 20 19 18 20 19 20 20.7 20.9 22.4 0
Slide 34: Price Index – Tea and Confectionary
Price Index – Tea and Confectionary Tea Price Index Confectionery Price Index 230 214 214 214 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 167 210 203 203 203 203 203 203 199 200 200 193 193 193 164 189 191 159 190 179 179 177 176 151 17
Slide 35: Agribusiness – Price Movement
Agribusiness – Price Movement Settlement Price (RM) WDL's Avg Milk Price (LKR) 5,000 270 260 262 4,500 4,202 250 MALAYSIAN RINGGITS – RM 4,000 240 3,500 3,656 230 229 3,000 220 2,500 210 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 September-23 November-23 Janu
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