December 15, 2022

Blue Power Group Limited (BPOW), for the six months ended October 31, 2022 booked a 108% increase in revenue to total $439.67 million compared to $211.10 million for the corresponding period in 2021. Revenue for the quarter totalled $225.41 million, 137% above last year’s corresponding quarter of $95 million.

BPOW highlighted, “We experienced revenue growth in all of our main product categories including our bath soap lines, specialty soaps and our laundry soap business. Revenue growth came from existing and new customers and saw the group gaining market share locally and re-enforcing its reputation as a leading private label manufacturer.”

Cost of sales for the period rose by 172% to $357.52 million from $131.65 million last year. This further translated into gross profit amounting to $82.15 million, an increase of 3% when compared to $79.44 million in 2021. Gross profit for the second quarter rose 27% to close at $37.88 million (2021: $29.93 million).

Administrative expenses saw an increase of 11%, to total $90.27 million (2021: $81.64 million). Thus, resulting in loss from operations of $9.61 million, relative to 2021’s operating loss of $6.10 million. For the second quarter profit from operations amounted to $907,910 versus operating loss of $14.12 million in 2021.

Impairment losses on trade receivables closed at $726,216 (2021: $3.79 million), while impairment losses on investment amounted to $761,958 (2021: $109,102).

Other income, for the period totalled $15.85 million a significant increase when compared to the $49.36 million recorded for the same period last year.

In addition, BPOW reported finance costs of $1.69 million for the period, a 47% increase when compared to $1.15 million in the year prior. Finance income fell by 63% to $5.22 million relative to $14.06 million for the corresponding period in 2021.

Profit before tax totalled $22.64 million compared to $202.72 million in 2021 followed by tax charges of $6.24 million (2021: $7.68 million).

Net Profit for the period totalled $16.39 million, a 92% decline compared to $195.04 million booked in 2021, while net profit for the quarter amounted to $10.12 million (2021: $148.63 million).

Total comprehensive income totalled $16.39 million for the period versus $183.04 million last year. While for the quarter, total comprehensive income amounted to $10.12 million (2021: $113.96 million).

Earnings per share (EPS) for the period totalled $0.03 (2021: $0.35). EPS for the second quarter amounted to $0.02 relative to $0.26 twelve months earlier. The twelve-month trailing EPS is $0.03. The number of shares used in our calculations amounted to 564,990,000 units. BPOW’s stock price closed the trading period on December 14, 2022 at $3.17.

Balance Sheet at a glance:

As at October 31, 2022, total assets amounted to $1.566 billion (2021: $1.571 billion). This was as a result of a decline in ‘Cash and Cash Equivalents’ to $18.52 million (2021: $118.06 million). This decline was tempered by an increase in ‘Interest in Associated Company’ of $362.33 million (2021: nil).

Shareholders’ Equity of $1.434 billion was reported (2021: $1.430 billion) which resulted in a book value per share of $2.538 (2021: $2.532).

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