Sunshine Holdings reports 11.6% YoY topline growth in 1QFY26

• Core operational improvements drive performance across healthcare, consumer and agribusiness sectors 

Diversified Sri Lankan conglomerate Sunshine Holdings PLC delivered a resilient start to FY26, reporting strong top and bottom-line growths. 

The group recorded a consolidated revenue of Rs.15.9 billion during the first quarter of the current financial year (1QFY26), up by 11.6 percent year-on-year (YoY), with profit after tax (PAT) up by 20.6 percent YoY to Rs.1.7 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 topline, accounting for 54.2 percent of total revenue, with consumer at 30.1 percent and agribusiness 15.7 percent of the total revenue. Gross profit increased by 22.3 percent YoY to Rs.5.1 billion, with the group’s gross profit margin expanding by 277 basis points (bps) to 31.8 percent. 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, the group’s healthcare sector posted revenue of Rs.8.6 billion, an increase of 14 percent YoY backed by expansion across the agency, distribution and retail pharmacy verticals. The pharmaceutical agency business recorded robust growth of 26.7 percent YoY with the medical devices segment also contributing positively, posting a 17.2 percent YoY revenue increase. Healthguard Distribution recorded a significant topline increase of 44.5 percent YoY, benefiting from the business model realignment and strategic partnerships during the period. 

Meanwhile, Healthguard Pharmacy reported a 17.4 percent YoY revenue increase. However, Lina Manufacturing, the pharma manufacturing business of the group, reported a 19.6 percent revenue contraction in the quarter due to the timing of government delivery schedules.

Consumer

The consumer sector reported a 3.7 percent YoY increase in revenue to close at Rs.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 percent YoY, driven primarily by a strong recovery in the confectionery segment, where its revenues grew 19.9 percent 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 percent YoY increase in export revenue.

Agribusiness

The agribusiness sector of the group, represented by Watawala Plantations PLC, reported a revenue of Rs.2.5 billion, marking a significant 20.7 percent YoY growth. This was primarily driven by stronger performance in the palm oil segment, which grew by 27.2 percent YoY, benefiting from favorable market pricing and higher sales volumes, while the dairy business recorded revenue of Rs.278.5 million, a decline of 14.6 percent YoY. Despite the contraction in dairy, the agribusiness EBIT margin expanded to 48.8 percent in 1QFY26, up from 38.8 percent in the same period last year, driven by topline growth in palm oil and sustained cost efficiencies in palm oil operations.