August 8, 2024
Tropical Battery Company Limited (Tropical)
Unaudited financials for the nine months ended June 30, 2024:
Tropical Battery Company Limited (Tropical) for the nine months ended June 30, 2024, reported a 100% increase in Revenue totalling $4.27 billion compared to $2.13 billion in the corresponding period last year. Revenue for the third quarter had a 144% increase to close at $1.91 billion compared to $782.84 million for the comparable quarter of 2023.
Cost of sales amounted to $2.91 billion (2023: $1.47 billion), this represents an increase of 98% year over year. Consequently, gross profit increased by 104% to $1.36 billion compared to $666.95 million for the nine months ended June 30, 2023. The company booked gross profit of $623.26 million for the third quarter versus $228.66 million reported for the similar quarter of 2023.
Administrative, marketing and selling expenses increased by 74% to close at $821.33 million (2023: $471.64 million), while Operating profit increase by 136% from $195.32 million in 2023 to $460.50 million in the period under review. Consequently, other operating income for the nine months ended June 30, 2024, amounted to $11.61 million, a 33% decrease relative to $17.24 million reported in 2023.
Profit before depreciation, net finance costs and taxation for the nine months ended June 30, 2024, amounted to $472.10 million, a 122% increase relative to $212.55 million reported in 2023. Profit before depreciation, net finance costs and taxation for the third quarter amounted to $255.11 million (2023: $68.43 million). Depreciation totalled $58.98 million a 19% increase from the corresponding period last year. (2023: $49.59 million).
Net finance costs for the nine months ended June 30, 2024, amounted to $193.48 million, a 541% increase relative to $30.20 million reported in 2023. Net finance costs for the third quarter amounted to $112.86 million (2023: $12.01 million).
Net profit for the nine months amounted to $220.16 million, a 66% increase from the $132.76 million reported in 2023. For the third quarter, Net income was $121.35 million (2023: $38.83 million).
Consequently, Earnings Per Share for the nine months amounted to $0.15 (2023: EPS: $0.10), while Earnings Per Share for the quarter totalled $0.09 (2023: EPS: $0.03). The twelve-month trailing EPS was $0.15, and the number of shares used in these calculations was 1,303,750,000.
Notably, Tropical’s stock price closed the trading period on August 07, 2024, at a price of $2.15 with a corresponding P/E ratio of 14.75x.
Balance Sheet Highlights
The company’s assets totalled $7.59 billion (2023: $2.61 billion). This increase was attributable to Goodwill which amounted to $2.95 billion for the nine months (2023: $18.70 million). Additionally, Accounts Receivable also contributed to the increase equating to $1.22 billion for the nine months (2023: $514.51 million).
Shareholder’s equity was $1.21 billion (2023: $1.11 billion), representing a book value per share of $0.93 (2023: $0.85).
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