Core operational improvements drive performance across Healthcare, Consumer, and Agribusiness sectors
• Consolidated revenue of LKR 15.9 billion
• Healthcare revenue up 14.0% YoY to LKR 8.6 billion
• Consumer revenue up 3.7% YoY to LKR 4.8 billion
• Agribusiness revenue increased by 20.7% YoY to LKR 2.5 billion
August 03, 2023: Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) delivered a resilient start to FY26, reporting strong top and bottom line growth. The Group recorded a consolidated revenue of LKR15.9 billion during the first quarter of the current financial year (1QFY26), up by 11.6% YoY, with Profit after tax (PAT) up by 20.6% YoY to LKR1.7 billion. The Group sustained this positive momentum across its core sectors—Healthcare, Consumer and Agribusiness, supported by improving economic conditions and a pickup in consumer activity.
The Group’s Healthcare sector emerged as the largest contributor to Sunshine’s top-line, accounting for 54.2% of total revenue, with Consumer at 30.1%, and Agribusiness 15.7% of the total revenue. Gross profit increased by 22.3% YoY to LKR 5.1 billion, with the Group’s gross profit margin expanding by 277 basis points (bps) to 31.8%. This growth was primarily driven by margin expansion in both agribusiness and consumer segments.
Commenting on the performance, Sunshine Holdings PLC Group Chief Executive Officer Shyam Sathasivam said, “We’ve had a strong start to FY26, delivering double-digit growth in revenue and profit, underpinned by the strategic groundwork laid last year. This performance reflects improving macroeconomic conditions, a modest consumer recovery, and also the strength of our diversified portfolio alongside focused execution across sectors. Healthcare remains a key growth engine, with investments underway in manufacturing, distribution, and diagnostics. In Consumer, the recovery is gaining momentum, driving renewed efforts in brand building, innovation, and export expansion. Agribusiness continues to demonstrate strong fundamentals, supported by stable pricing and cost efficiencies. Across the Group, we remain committed to long-term value creation through targeted investment and operational resilience.”
Healthcare
During the period in review, Group’s Healthcare sector posted revenue of LKR 8.6 billion, an increase of 14% YoY backed by expansion across the agency, distribution, and retail pharmacy verticals. The pharmaceutical agency business recorded robust growth of 26.7% YoY with the medical devices segment also contributing positively, posting a 17.2% YoY revenue increase. Healthguard Distribution recorded a significant topline increase of 44.5% YoY, benefiting from the business model realignment and strategic partnerships during the period.
Meanwhile, Healthguard Pharmacy reported a 17.4% YoY revenue increase. However, Lina Manufacturing, the Pharma manufacturing business of the Group, reported a 19.6% revenue contraction in the quarter due to the timing of government delivery schedules.
Consumer
The consumer sector reported a 3.7% YoY increase in revenue to close at LKR 4.8 billion in 1QFY26, backed by improvements in both the domestic and export markets. Local consumer business showcased strong performance with an improved revenue growth of 4.5% YoY, driven primarily by a strong recovery in the confectionery segment, where its revenues grew 19.9% YoY, supported by both value and volume improvements. In branded tea, volumes and value grew marginally during the quarter. The group’s export business maintained its positive trajectory in 1QFY26, reporting 7.2% YoY increase in export revenue.
Agribusiness
The Agribusiness sector of the Group, represented by Watawala Plantations PLC (CSE: WATA), reported a revenue of LKR 2.5 billion, marking a significant 20.7% YoY growth. This was primarily driven by stronger performance in the palm oil segment, which grew by 27.2% YoY, benefiting from favorable market pricing and higher sales volumes, while the dairy business recorded revenue of LKR 278.5 million, a decline of 14.6% YoY. Despite the contraction in dairy, the Agribusiness EBIT margin expanded to 48.8% in 1QFY26, up from 38.8% in the same period last year, driven by topline growth in palm oil and sustained cost efficiencies in palm oil operations.
About Sunshine Holdings
Sunshine Holdings PLC is a diversified conglomerate contributing to ‘nation-building’ by creating value in vital sectors of the Sri Lankan economy – healthcare, consumer, and agribusiness. Established in 1967, the group is now home to leading Sri Lankan brands such as Zesta Tea, Watawala Tea, Ran Kahata, Daintee, Milady, Healthguard Pharmacy and, Lina Manufacturing with over 1,900 employees and revenue of LKR 59.3 billion in FY25. The business units comprise of Sunshine Healthcare Lanka, Sunshine Consumer Lanka and Watawala Plantations PLC, which are leaders in their respective sectors and many of them certified as a “Great Place to Work” in 2024.
