Sunshine Holdings Plc · CSELK:SUN.N0000
Sunshine — 2QFY23 Earnings Presentation
33 slides from Sunshine's earnings presentation, Nov 16, 2022
Slide 1: 2QFY23 Earnings Webinar
2QFY23 Earnings Webinar Sunshine Holdings PLC 16 November 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 • Share swap in May 2022 - 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 • Divestment of “Pride of Lonach”, downstream business und
Slide 4: Group Performance
Group Performance
Slide 5: Group at a Glance – 2QFY23
Group at a Glance – 2QFY23 • LKR 13.2bn in Revenue Revenue Composition - 2QFY23 • LKR 1.6bn PAT Other, 0% +9.5%YoY Agriculture, 21% • PATMI of LKR 893m 36.2% +38.6%YoY LKR 13.2bn 56.2% • ROE of 31.4% (30.9% LY) Healthcare, • Leverage at 30.6% (FY22: 16.3%, FY22 Consumer, 44% adjusted to include expo
Slide 6: Group – Performance Highlights
Group – Performance Highlights LKR m 1HFY23 1HFY22 Growth % 2QFY23 2QFY22 Growth % Revenue 24,928 15,803 57.7% 13,209 8,456 56.2% EBIT 4,331 2,980 45.3% 2,336 1,660 40.7% EBIT margin 17.4% 18.9% 17.7% 19.6% PAT 3,151 2,457 28.2% 1,551 1,416 9.5% PAT margin 12.6% 15.5% 11.7% 16.7% PATMI 1,935 1,209 6
Slide 7: Healthcare
Healthcare
Slide 8: Healthcare Sector
Healthcare Sector Revenue Split [1HFY23] Total Asset Split [1HFY23] Pharma Manufacturing Pharma Manufacturing Retail (Healthguard) 3% 10% Retail 9% (Healthguard) 5% Medical devices 17% Medical devices 26% Pharma+Distribution 59% Pharma+Distribution 71%
Slide 9: Healthcare – Performance Highlights
Healthcare – Performance Highlights LKR m 1HFY23 1HFY22 Growth % 2QFY23 2QFY22 Growth % Revenue 11,611 8,546 35.9% 5,776 4,546 27.0% EBIT 1,505 760 98.0% 762 360 111.9% EBIT margin 13.0% 8.9% 13.2% 7.9% PAT 770 507 51.7% 337 237 42.3% PAT margin 6.6% 5.9% 5.8% 5.2% • Margins improved due to MRP pric
Slide 10: Pharmaceuticals
Pharmaceuticals Pharma Segment Performance • Fastest growing Pharma company in Sri Lanka with 13.02% market share • Revenue growth of 33.7% YoY in 2QFY23 and Volume degrowth of 18.8% YoY in 2QFY23 Source : IQVIA MAT
Slide 11: Pharmaceuticals – Price Increase Index
Pharmaceuticals – Price Increase Index April 2021 considered as the base (i.e., 100) 250 370 370 370 370 400 365 355 350 200 299 197 197 197 197 197 197 300 Exchange Rate 150 250 Price Index 200 200 201 200 210 203 203 203 203 203 203 141 200 100 109 109 109 109 109 109 109 150 100 100 100 100 100 5
Slide 12: Sunshine Medical Devices (SMD)
Sunshine Medical Devices (SMD) Sunshine Medical Devices Segment Performance • 2QFY23 witnessed a 32.5% growth in revenue vs 2QFY22, despite volume contraction of 33.0% YoY • Average of 84% price increase taken in 1QFY23 Market Dynamics 120% 97% 100% 98% 100% 94% 94% 95% 91% 88% 89% 81% 80% 84% 76% 8
Slide 13: Pharma Manufacturing
Pharma Manufacturing Pharma Manufacturing Segment Performance • Revenue growth of 31.0% YoY compared to 2QFY22 • GP margins contracted due to product/ customer mix changes and rupee depreciation • Lina Spiro delivered its first government order of MDIs (Metered Dose Inhalers) in July 2022
Slide 14: Retail (Healthguard)
Retail (Healthguard) Low 1HFY22 1HFY23 Limited Footfall 838K 773K supply of fuel 8% degrowth Retail Segment Performance Availability Q1 Q2 Challenges 81% 77% • Revenue degrowth of 13% YoY • Reduced footfall • Less purchases in wellness products adversely impacted the Low Q1 Q2 Bill count 203K 188K G
Slide 15: Consumer
Consumer
Slide 16: Consumer Sector
Consumer Sector Revenue Split [1HFY23] Total Asset Split [1HFY23] Inter co./other -13% Tea Tea 29% 33% Export business 47% Export business 41% Confectionery Confectioner 17% y 20%
Slide 17: Consumer – Performance Highlights
Consumer – Performance Highlights 1HFY23 LKRm 1HFY23 1HFY22 Growth % 2QFY23 2QFY22 Growth % Export LKR m Revenue 8,567 3,750 128.4% 4,681 1,890 147.6% Contribution EBIT 700 210 232.7% 334 110 202.6% Revenue 4,016 EBIT 446 EBIT margin 8.2% 5.6% 7.1% 5.8% PAT 336 PAT 493 109 350.1% 197 48 307.3% **Per
Slide 18: Local Business
Local Business TEA CONFECTIONERY 2QFY23 7.2% 126.9% 2QFY23 -26.2% Volume Growth 0.7% Volume Growth 45.2% Price Growth 125.3% Price Growth Challenged in volumes due to; • Growth owing to price • Low consumer sentiment increases. • Outlets reducing stocks • Delivery disruptions in the month of July du
Slide 19: Tea – Price Index
Tea – Price Index April 2021 considered as the base (i.e., 100) 236 Tea Volume in million kg 225 1.6 1.5 1.4 1.3 1.3 1.2 187 1.2 175 1.0 168 1.0 1.0 154 0.8 146 146 146 146 146 0.6 100 100 116 114 117 100 100 100 100 105 109 109 127 0.4 112 100 96 97 99 100 104 104 104 104 0.2 91 94 - Tea auction pr
Slide 20: Tea – Brand Value Market Share
Tea - Brand Value Market Share 100% 90% 23 18 22 26 26 25 25 28 28 28 28 29 29 25 80% 70% 25 20 30 36 31 60% 26 27 27 23 23 24 25 23 22 50% 40% 30% 55 48 47 48 50 49 49 48 47 48 49 47 46 47 20% 10% 0% Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 S
Slide 21: Confectionery – Price Index
Confectionery – Price Index April 2021 considered as the base (i.e., 100) 270 Confectionery - number of units sold in millions 250 250 250 250 250 250 3.5 230 3.0 210 3.0 2.8 210 200 203 2.6 189 191 192 2.5 2.3 2.3 190 170 170 2.0 1.8 150 1.5 150 150 150 150 130 124 119 1.0 113 109 111 105 105 106 1
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% 15% 16% 18% 90% 41% 80% 32% 27% 31% 31% 33% 37% 38% 35% 34% 35% 30% 32% 30% 26% 31% 35% 36% 70% 60% 23% 50% 22% 21% 20% 24% 18% 20% 21% 20% 19% 19% 21% 21% 18% 20% 20% 40% 20% 20% 30% 33% 34% 31% 31%
Slide 23: Export Business
Export Business 1,150.00 2,500.00 1,100.00 2,000.00 1,050.00 Export Quantity (‘000 Kgs) Export Revenue in LKR m 1,500.00 1,000.00 950.00 1,000.00 900.00 500.00 850.00 800.00 - 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 Export Quantity ('000 Kg) - LHS Export Revenue (LKR million) - RHS
Slide 24: Agribusiness
Agribusiness
Slide 25: Agri Sector
Agri Sector Revenue Split [1HFY23] Total Asset Split [1HFY23] Dairy 12% Dairy 32% Palm Oil 67% Palm Oil 88%
Slide 26: Agri – Performance Highlights
Agri – Performance Highlights LKR m 1HFY23 1HFY22 Growth % 2QFY23 2QFY22 Growth % Revenue 4,579 3,406 34.4% 2,727 2,002 36.2% EBIT 2,033 2,020 0.6% 1,276 1,236 3.2% EBIT margin 44.4% 59.3% 46.8% 61.8% PAT 1,934 1,889 2.4% 1,200 1,165 3.0% PAT margin 42.2% 55.4% 44.0% 58.2% • Significant revenue grow
Slide 27: Palm Oil
Malaysian Ringgits - RM 4,200 3,200 3,700 4,700 5,200 5,700 6,200 6,700 7,200 7,700 12-Apr-21 12-May-21 12-Jun-21 12-Jul-21 12-Aug-21 Palm Oil 12-Sep-21 12-Oct-21 12-Nov-21 12-Dec-21 12-Jan-22 12-Feb-22 Settlement Price (RM) 12-Mar-22 12-Apr-22 12-May-22 12-Jun-22 12-Jul-22 12-Aug-22 12-Sep-22 12-Oc
Slide 28: Dairy
Dairy WDL's Avg Milk Price WDL's Milk Sales Volume (million litres) 260.00 1.3 240.00 1.3 1.3 1.3 1.2 220.00 1.0 200.00 180.00 160.00 140.00 120.00 100.00
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 - Revenue QonQ
Historical Trend - Revenue QonQ 14,000 0% 12,000 1% 21% 16% 10,000 8,000 0% 0% 0% 35% 24% 20% 33% 1% 1% 18% 2% 14% 19% 6,000 13% 22% 27% 25% 32% 25% 4,000 34% 50% 44% 2,000 53% 54% 54% 53% 57% 51% - 3QFY21 4QFY21 1QFY22 2QFY22 3QFY22 4QFY22 1QFY23 2QFY23 Healthcare Consumer Agriculture Other