Sunshine Holdings delivers steady FY25 results with 7% top-line growth

Group CEO Shyam Sathasivam 

Diversified Sri Lankan conglomerate Sunshine Holdings PLC has recorded resilient revenue growth during the year ended 31 March 2025 (FY25), amidst macroeconomic headwinds and evolving consumer dynamics. 

The Group’s Healthcare sector led this growth and remained the largest contributor to total Group revenue in FY25.

The Group recorded a consolidated revenue of Rs. 59.3 billion for FY25, reflecting a 7.0% year-on-year (YoY) growth. This performance was driven by a strong double-digit expansion in the Healthcare segment, which contributed 55.0% of Group revenue. The Consumer and Agribusiness sectors accounted for 31.6% and 13.4% of revenue, respectively, maintaining a balanced and diversified portfolio.

Increased scale in the Healthcare sector and operational efficiencies in Agribusiness supported profitability, with earnings before interest and taxes (EBIT) rising to Rs. 9.3 billion, a 7.1% increase YoY. The Group maintained an EBIT margin of 15.7%, despite margin contraction in the Consumer segment.

Profit after tax (PAT) for the period slightly contracted to Rs. 5.9 billion, impacted by a 48.9% increase in income tax expenses stemming from changes in Agribusiness taxation and continued margin pressures in the Consumer segment. Sunshine Holdings Group CEO Shyam Sathasivam said: “FY25 was a pivotal year for Sunshine Holdings, marked by resilience, disciplined execution, and renewed growth momentum across our core sectors. Our Healthcare segment continued to lead from the front, delivering double-digit growth and enhanced profitability, while our Consumer and Agribusiness sectors navigated a volatile environment with agility. Despite pressures on margins and shifts in demand, the Group maintained stable earnings and strengthened its foundation for long-term growth.”

“As we look ahead, our strategic focus remains clear: scale high-performing verticals, invest in innovation and manufacturing capacity, and deepen our presence across high-potential domestic and export markets. We are optimistic about the future and remain committed to delivering sustainable value for our shareholders and a positive impact for the communities we serve,” Sathasivam added.

The Healthcare sector recorded a revenue growth of 17.3% YoY in FY25, generating Rs. 32.6 billion across the pharmaceutical agency, medical devices, distribution, retail, and pharmaceutical manufacturing verticals. This top-line momentum translated into improved profitability, with the sector’s EBIT margin expanding to 16.9% in FY25, up from 15.5% in FY24. 

The pharmaceutical agency business delivered a strong 14.3% YoY growth in revenue, fuelled by sustained volume expansion across key therapeutic areas. Healthguard Distribution expanded its portfolio by securing new distributor relationships with Cipla and Micro Labs, contributing to a 23.9% YoY revenue increase in FY25. Healthguard Pharmacy, the retail arm, reported 9.2% revenue growth YoY during the period in review. 

Lina Manufacturing, the pharma manufacturing business of the Group, recorded a revenue growth of 69.2% YoY. This performance was led by higher output from the Metred Dose Inhaler (MDI) line, which fulfilled the entirety of the Government’s MDI requirement for 2024. 

The Consumer sector, which includes both export and domestic branded businesses, reported a revenue of Rs. 18.7 billion, reflecting a 3.0% YoY decline. This was primarily due to subdued domestic demand during the first half of the year, where revenue from the Branded Tea and Confectionery (domestic) businesses declined by 12.7% YoY. 

Within branded tea, volumes grew by 1.6% YoY, despite an 8.8% contraction in value, primarily due to VAT related pricing pressures in the first half. The confectionery segment continued to be affected by weak consumer sentiment and increased competition, translating into a 28.0% YoY contraction in revenue for FY25. 

The Group’s export business maintained its positive momentum in FY25 where strong demand from key clients supported volume growth, resulting in a 19.1% YoY increase in export revenue.

The Agribusiness sector of the Group, represented by Watawala Plantations PLC, reported a revenue of Rs. 7.9 billion in FY25, reflecting a 4.5% contraction YoY. This was primarily driven by the adverse performance of the dairy business segment. 

The palm oil segment also recorded a slight decline in revenue, mainly due to lower volumes during the period.

Despite the top-line contraction, sector profitability improved, with the EBIT margin increasing to 36.2% in FY25, compared to 32.0% in the previous year. This uplift was driven by cost efficiencies in the palm oil segment.