August 7, 2026: Diversified Sri Lankan conglomerate Sunshine Holdings PLC (CSE: SUN) delivered consolidated revenue of LKR 18.5 billion during the first quarter of the 2026/27 financial year (1QFY27), recording growth of 16.6% year-on-year (YoY).
The Group’s top-line performance was supported by its diversified portfolio and the consolidation of Joint Agri Products Ceylon (Private) Limited (JAPC). Healthcare remained the Group’s largest sector, contributing 49.2% of consolidated revenue, followed by Consumer at 35.6% and Agribusiness at 15.2%. Profitability was, however, affected by regulatory pricing pressure and supply-side challenges within the Healthcare sector and higher operating costs in Agribusiness.
Gross profit increased by 3.2% YoY to LKR 5.2 billion, while the gross profit margin declined by 366 basis points to 28.1%. Earnings before interest and tax (EBIT) decreased by 7.8% YoY to LKR 2.4 billion, with the EBIT margin moderating to 13.2%. Profit after tax increased by 6.0% YoY to LKR 1.4 billion.
Commenting on the performance, Sunshine Holdings PLC Group Chief Executive Officer Shyam Sathasivam said, “Sunshine Holdings delivered strong revenue growth during the first quarter despite margin pressures across key sectors. The performance reflects the resilience of our diversified operating model and the contribution from JAPC, while regulatory price pressure and supply-side challenges in Healthcare and higher operating costs in Agribusiness affected profitability.
“Our priority remains to protect earnings quality, deepen local manufacturing capabilities and pursue disciplined growth opportunities. The establishment of Zydus Sunshine Lifesciences represents an important step in strengthening domestic pharmaceutical manufacturing and building greater resilience within Sri Lanka’s healthcare supply chain. Across the Group, we will continue investing in our brands, capabilities and operations to create sustainable long-term value,” Sathasivam added further.
During the quarter, Sunshine Healthcare Lanka Limited and India-based Zydus Lifesciences Limited established Zydus Sunshine Lifesciences (Private) Limited. The joint venture will develop a Good Manufacturing Practices-compliant oral solid dosage manufacturing facility at the BOI Horana Export Processing Zone. The investment is expected to support the expansion of local pharmaceutical manufacturing capabilities and contribute towards strengthening the country’s healthcare supply chain.
Healthcare
The Group’s Healthcare sector recorded revenue of LKR 9.1 billion during 1QFY27, representing an increase of 5.9% YoY. Growth within medical devices and pharmaceutical manufacturing helped offset the impact of National Medicines Regulatory Authority-driven price reductions and supply-side challenges.
The pharmaceutical agency business contracted by 18.2% YoY due to lower volumes and broader industry constraints. Medical devices recorded revenue growth of 8.8%, while Healthguard Distribution and Healthguard Pharmacy reported marginal revenue declines of 0.3% and 0.9%, respectively.
Lina Manufacturing delivered strong revenue growth of 20.5% YoY, supported by government product deliveries during the quarter.
Consumer
The Consumer sector recorded revenue of LKR 6.6 billion, representing growth of 38.0% YoY. The performance was primarily supported by the consolidation of JAPC. Excluding JAPC, Consumer sector revenue increased by 2.1%, supported by the resilience of branded tea and the continued recovery of the confectionery portfolio.
Branded tea revenue grew by 8.3% YoY, with the Watawala Thei and Ran Kahata brands performing well, while increased competition affected the premium tea segment. Confectionery revenue increased by 6.9%, led by improved performance across the gums and wafers categories.
Tea export revenue declined by 6.3% due to lower volumes from key customers. Meanwhile, JAPC’s spice export business recorded revenue growth of 11.5%, supported by its cinnamon, coconut, black pepper and clove product portfolio.
Agribusiness
The Group’s Agribusiness sector, represented by Watawala Plantations PLC (CSE: WATA), recorded revenue of LKR 2.8 billion, reflecting growth of 12.7% YoY.
Oil palm revenue increased by 17.9% to LKR 2.5 billion, supported by higher market prices, increased sales volumes and improved crop availability.
The dairy business recorded revenue of LKR 258.9 million, representing a decline of 7.1% YoY due to lower milk sales volumes and higher input costs. Consequently, the Agribusiness EBIT margin moderated to 47.2%, compared with 48.8% during the corresponding period of the previous financial year.
