May 16, 2024
Tropical Battery Company Limited (Tropical)
Unaudited financials for the six months ended March 31, 2024:
Tropical Battery Company Limited (Tropical) for the six months ended March 31, 2024, reported a 75% increase in Revenue totaling $2.36 billion compared to $1.35 billion in the corresponding period last year. Revenue for the second quarter had a 121% increase to close at $1.55 billion compared to $700.38 million for the comparable quarter of 2023.
Cost of sales amounted to $1.62 billion (2023: $911.53 million), this represents an increase of 78% year over year. Consequently, gross profit increased by 68% to $735.63 million compared to $438.29 million for the six months ended March 31, 2023. The company booked gross profit of $488.53 million for the second quarter versus $223.01 million reported for the similar quarter of 2023.
Administrative, marketing and selling expenses increased by 48% to close at $452.27 million (2023: $305.21 million), while Operating profit increase by 55% from $133.08 million in 2023 to $206.30 million in the period under review. As a result, other operating income for the six months ended March 31, 2024, amounted to $10.70 million, a 3% decrease relative to $11.04 million reported in 2023.
Profit before depreciation, net finance costs and taxation for the six months ended March 31, 2024, amounted to $217.00 million, a 51% increase relative to $144.12 million reported in 2023. Profit before depreciation, net finance costs and taxation for the second quarter amounted to $110.73 million (2023: $71.48 million). Depreciation totalled $37.44 million, a 17% increase from the corresponding period last year. (2023: $32.00 million).
Net finance costs for the six months ended March 31, 2024, amounted to $80.61 million, a 343% increase relative to $18.19 million reported in 2023. Net finance costs for the second quarter amounted to $63.59 million (2023: $5.73 million).
Net Income for the six months amounted to $98.82 million, a 5% increase comparable to last year’s six months figure of $93.93 million. For the second quarter Net Income decreased by 47% which was $26.58 million compared to the $49.75 million reported for the second quarter of 2023.
Consequently, Earnings Per Share for the six months amounted to $0.08 (2023: EPS: $0.07), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.04). The twelve-month trailing EPS was $0.10, and the number of shares used in these calculations was 1,303,750,000.
Notably, Tropical’s stock price closed the trading period on May 16, 2024, at a price of $2.20 with a corresponding P/E ratio of 22.43x.
Balance Sheet Highlights
The company’s assets totalled $6.88 billion (2023: $2.29 billion). This was attributable to goodwill of $2.47 billion and accounts receivables of $1.05 billion compared to the $362.77 million of the second quarter for 2023.
Shareholder’s equity was $2.30 billion (2023: $1.05 billion), representing a book value per share of $0.87 (2023: $0.81).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.