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 LKR 59.3 billion for FY25, reflecting a 7.0% year-on-year (YoY) growth.
This performance was driven by 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 LKR 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 LKR 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.
Commenting on the results, 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 positive impact for the communities we serve,” Sathasivam commented further.
Healthcare
The healthcare sector recorded revenue growth of 17.3% YoY in FY25, generating LKR 32.6 billion across the pharmaceutical agency, medical devices, distribution, retail and pharmaceutical manufacturing verticals.
This topline 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, fueled 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 Metered Dose Inhaler (MDI) line, which fulfilled the entirety of the Government’s MDI requirement for 2024.
Consumer
The consumer sector, which includes both export and domestic branded businesses, reported a revenue of LKR. 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.
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.
Agribusiness
The Agribusiness sector of the Group, represented by Watawala Plantations PLC (CSE: WATA), reported a revenue of LKR 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 topline contraction, sector profitability improved, with 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.
About Sunshine Holdings
Sunshine Holdings PLC is a publicly listed 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 2,000 employees and revenue of LKR 59.3 billion FY 24/25.
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.
Image Caption : Sunshine Holdings PLC Group CEO Shyam Sathasivam.