Sunshine Holdings records 16.6% YoY revenue growth in 1QFY27
Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) recorded a strong revenue performance for the first quarter ending June 30, 2026 (1QFY27), achieving a 16.6% year-on-year growth in consolidated turnover to reach LKR 18.5 billion. The Group’s expansion was driven by its resilient operational model, steady contributions across its core business units, and the […]
Sunshine Holdings PLC, a Sri Lankan conglomerate, reported a 16.6% year-on-year increase in revenue for the first quarter ending June 30, 2026. The company's growth was fueled by its robust operational strategy, consistent performance across its core business units, and the integration of spice exporter Joint Agri Products Ceylon (Private) Limited (JAPC). However, the group's profitability faced challenges due to regulatory price controls, supply chain issues, and increased operating expenses in certain segments.
Gross profit for the quarter saw a modest increase of 3.2% year-on-year to LKR 5.2 billion, but the profit margin declined by 366 basis points to 28.1%. The company's earnings before interest and tax (EBIT) fell by 7.8% year-on-year to LKR 2.4 billion, leading to an EBIT margin of 13.2%. Even with these margin pressures, consolidated profit after tax rose by 6.0% to LKR 1.4 billion.
Healthcare emerged as the primary revenue generator, contributing 49.2% of total turnover, growing by 5.9% to LKR 9.1 billion. This growth was driven by strong medical devices, up 8.8%, and pharmaceutical manufacturing, which surged 20.5% due to government supply orders. Despite this, the pharmaceutical agency segment saw an 18.2% drop, as it was affected by National Medicines Regulatory Authority price cuts and supply constraints.
The Consumer sector contributed 35.6% of group revenue, expanding by 38.0% year-on-year to LKR 6.6 billion, largely due to JAPC's spice exports increasing by 11.5%. Excluding JAPC, consumer revenue grew by 2.1%, driven by resilience in branded tea sales, including Watawala Thei and Ran Kahata, which increased by 8.3%, and a 6.9% rebound in confectionery sales.
Agribusiness, under Watawala Plantations PLC (CSE: WATA), generated 15.2% of overall turnover, growing by 12.7% to LKR 2.8 billion. Oil palm segment revenues increased by 17.9%, climbing to LKR 2.5 billion due to higher market prices and improved yields, while the dairy segment contracted by 7.1%, hurt by lower sales volumes and higher input costs.
Written by urgent.news from The Island Sri Lanka's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
