The Group recorded a consolidated revenue of LKR 32.3 billion in 1HFY26, up 7.4% year-over-year (YoY), primarily driven by continued expansion in the Healthcare sector, supported by strong performances in 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 16.1% of the total revenue.
Gross profit for the period in review increased by 12.9% YoY to LKR 10.3 billion, with the gross profit margin expanding by 153 bps to 31.9%.
This growth was primarily driven by margin expansion in agribusiness segment.
Group earnings before interest and taxes (EBIT) rose 18.6% YoY to LKR 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 1HFY26, 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.
Commenting on the performance, Sunshine Holdings PLC Group Chief Executive Officer 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 1HFY26 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.”
Healthcare
During the period in review, Group’s Healthcare sector posted revenue of LKR 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 pharmaceutical 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 1HFY26, 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 utilization, product diversification, and operational efficiency to support long-term sustainability.
Consumer
The consumer sector, which includes both export and brands businesses, reported a 1.0% YoY increase in revenue to close at LKR 9.8 billion in 1HFY26.
Revenue from the Branded Tea and Confectionery businesses grew by 5.1% YoY in 1HFY26, underpinned by strong performances across both segments.
In Branded Tea, both volumes and values recorded steady growth during 1HFY26, 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 U.S. tariff adjustments.
Consumer sector EBIT margin rose to 7.8% in 1HFY26, compared to 5.1% in the same period last year, as a result of improved operational efficiencies and tighter cost management.
Agribusiness
The Agribusiness sector of the Group, represented by Watawala Plantations PLC (CSE: WATA), reported an impressive revenue of LKR 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, benefiting from favorable market conditions.
The dairy business recorded revenue of LKR 578.0 million in 1HFY26, down 6.4% YoY, due to reduced milk price during the period.
Despite the contraction in dairy, overall profitability for the sector improved sharply, with EBIT margins reaching 49.1% in 1HFY26 compared to 36.1% in the same period last year.
About Sunshine Holdings
Sunshine Holdings PLC is a publicly listed conglomerate contributing to ‘nation-building’ by creating value in vital sectors of the Sri Lankan economy – healthcare, consumer and agribusiness.
Established over 58 years ago 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 nearly 2,000 employees and revenue of LKR 59.3 billion in FY25.
The business units comprise of Sunshine Healthcare Lanka, Sunshine Consumer Lanka, and Watawala Plantations PLC, which are leaders in their respective sectors and most of them certified as a “Great Place to Work” in 2024.
We believe that the purpose of our existence is to “Bring good things to life” and that means, we will make available to all Sri Lankans, quality medicines and consumer products at affordable prices therefore ensuring a better quality of life for all.
Our growth has been defined by our commitment to conduct our business ethically and staying true to our values.