February 12, 2025
Tropical Battery Company Limited (Tropical)
Unaudited financials for the twelve months ended September 30, 2024:
Tropical Battery Company Limited (Tropical) for the twelve months ended September 30, 2024 reported a 101% increase in Revenue totaling $5.62 billion compared to $2.80 billion in the corresponding period last year. Revenue for the fourth quarter had a 103% increase to close at $1.36 billion compared to $668.88 million for the comparable quarter of 2023.
Cost of sales amounted to $3.76 billion (2023: $1.93 billion), this represents an increase of 95% year over year. Consequently, gross profit increased by 113% to $1.86 billion compared to $876.23 million for the twelve months ended September 30, 2023. The company booked gross profit of $505.26 million for the fourth quarter versus $209.28 million reported for the similar quarter of 2023.
Administrative, marketing and selling expenses increased by 115% to close at $1.36 billion (2023: $630.40 million), while Operating profit increased by 107% from $245.83 million in 2023 to $508.54 million in the period under review. As a result, Other operating income for the twelve months ended September 30, 2024 amounted to $10.83 million, a 14% decrease relative to $12.64 million reported in 2023.
Profit before depreciation, net finance costs and taxation for the twelve months ended September 30, 2024, amounted to $519.37 million, a 101% increase relative to $258.47 million reported in 2023. Profit before depreciation, net finance costs and taxation for the fourth quarter amounted to $47.27 million (2023: $45.92 million). Depreciation totaled $110.40 million a 94% increase from the corresponding period last year. (2023: $56.77 million).
Net finance costs for the twelve months ended September 30, 2024, amounted to $374.63 million (2023: $56.93 million). Net finance costs for the fourth quarter amounted to $181.15 million (2023: $26.73 million).
Taxation expense for the twelve months ended September 30, 2024 amounted to $14.49 million (2023: $4.93 million) . Net income for the twelve months amounted to $19.86 million, a 86% decrease from the $139.84 million reported in 2023. For the fourth quarter, Net loss was $200.30 million (2023: $7.08 million).
Net loss attributable to shareholders amounted to $13.18 million (2023: net profit attributable to shareholders closed at $135.20 million).
Consequently, Loss Per Share for the twelve months amounted to $0.01 (2023: $0.10), while Loss Per Share for the quarter totaled $0.15 (2023: EPS: $0.01). The twelve month trailing LPS was $0.01 and the number of shares used in these calculations was 1,303,750,000.
Notably, Tropical’s stock price closed the trading period on February 11, 2025 at a price of $2.90.
Balance Sheet Highlights
The company’s assets totaled $7.85 billion (2023: $2.45 billion). The movement in total assets was attributable to $2.84 billion increase in ‘Goodwill’ to $2.90 billion (2023: $61.12 million), a $1.03 billion increase in ‘Plant, Property and Equipment’ to $1.21 billion (2023: $180.24 million), a 70% increase in ‘Inventories’ to $1.63 billion (2023: $958.31 million) and a 106% increase in ‘Accounts receivables’ to $974.84 million (2023: $474.36 million). Additionally, ‘Cash and cash equivalents’ increased by $272.22 million to $461.67 million (2023: $189.45 million).
Shareholders’ equity amounted to $1.06 billion (2023: $1.05 billion) which represented a book value per share of $0.813 (2023: $0.809).
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