Friday Nov 07, 2025
Friday Nov 07, 2025
Friday, 7 November 2025 00:06 - - {{hitsCtrl.values.hits}}
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| Group CEO Shyam Sathasivam |
Diversified Sri Lankan conglomerate Sunshine Holdings PLC has continued to build on its strong start to the year, delivering an impressive performance across all sectors during the first half of FY26.
The Group recorded a consolidated revenue of Rs. 32.3 billion in 1H FY26, up 7.4% year-over-year (YoY), primarily driven by continued expansion in the Healthcare sector, supported by strong performances in the Consumer and Agribusiness sectors.
The Group’s Healthcare sector emerged as the largest contributor to Sunshine’s top-line, accounting for 53.7% of total revenue, with Consumer at 30.2% and Agribusiness with 16.1% of the total revenue. Gross profit for the period in review increased by 12.9% YoY to Rs. 10.3 billion, with the gross profit margin expanding by 153 basis points (bps) to 31.9%. This growth was primarily driven by margin expansion in the Agribusiness segment.
Group Earnings Before Interest and Taxes (EBIT) rose 18.6% YoY to Rs. 5.5 billion, reflecting improved operating performance, particularly within the Agribusiness and Consumer sectors, despite a 16.7% contraction in Healthcare sector EBIT. The EBIT margin expanded to 17.0% in 1H FY26, compared to 15.4% in the same period last year, supported by stronger performances in the Agribusiness and Consumer sectors, which helped offset the contraction in Healthcare.
Sunshine Holdings PLC Group CEO Shyam Sathasivam said: “Our diversified business model continues to be a key strength, allowing us to navigate evolving market conditions with confidence. The growth achieved in 1H FY26 reinforces our ability to execute with discipline and foresight. As we enter the next phase, our focus will remain on deepening local manufacturing in healthcare, expanding consumer reach, and driving productivity across agribusiness to deliver sustainable returns for all stakeholders.”
During the period in review, the Group’s Healthcare sector posted a revenue of Rs. 17.3 billion, an increase of 7.4% YoY backed by improvements in agency, distribution, and retail pharmacy verticals. The agency business growth was supported by the Pharmaceuticals and Medical Devices segments, reflecting continued organic expansion in key agency partnerships and core product portfolios. Revenue of the Retail segment saw a 15.1% YoY increase, reflecting higher prescription volumes and value growth across both Pharmaceuticals and Wellness categories.
Healthguard Distribution posted a 29.5% YoY revenue increase, supported by the revised operating model and new strategic partnerships formed during the period. Lina Manufacturing, the pharmaceutical manufacturing business of the Group, saw a 17.4% YoY revenue contraction in 1H FY26, primarily due to the reduction in Government purchase orders for the 2025 calendar year. Despite this short-term impact, the business continues to focus on capacity utilisation, product diversification, and operational efficiency to support long-term sustainability.
The Consumer sector, which includes both Export and Brands businesses, reported a 1.0% YoY increase in revenue to close at Rs. 9.8 billion in 1H FY26. Revenue from the Branded Tea and Confectionery businesses grew by 5.1% YoY in 1H FY26, underpinned by strong performances across both segments. In Branded Tea, both volumes and values recorded steady growth during 1H FY26, while in the Confectionery segment, revenue improved on the back of volume growth.
In contrast, the Export business recorded a marginal 1.2% YoY contraction, despite an increase in export volumes, because of a reduction in high-value tea product categories following the adverse impact of US tariff adjustments.
The Consumer sector EBIT margin rose to 7.8% in 1H FY26, compared to 5.1% in the same period last year, as a result of improved operational efficiencies and tighter cost management.
The Agribusiness sector of the Group, represented by Watawala Plantations PLC, reported an impressive revenue of Rs. 5.2 billion, up by 21.9% YoY. The revenue growth was driven by the stronger performance in the palm oil segment, which grew by 26.7% YoY, benefitting from favourable market conditions. The dairy business recorded a revenue of Rs. 578 million in 1H FY26, down 6.4% YoY, due to reduced milk prices during the period.
Despite the contraction in dairy, overall profitability for the sector improved sharply, with EBIT margins reaching 49.1% in 1H FY26 compared to 36.1% in the same period last year
