BPOW reports three months net profit of $33.10 million

August 27, 2020

Blue Power Group Limited (BPOW) for the three months ended July 31, 2020 revenues increased by 36%, year over year, totalling $161.85 million (2019: $118.68 million). Management noted, “income from both domestic sales of soap and exports was higher, with export sales showing a dramatic increase of 111% over the same quarter last year. Export sales were boosted by extra shipments to the USA where we were able to display one of our products in several Walmart stores.”

Cost of Sales for the quarter showed an increase of 25%, moving from $80.43 million to $100.28 million. As such, Gross Profit amounted to $61.56 million, an increase of 61% on the $38.25 million recorded for the three months ended July 31, 2019.

Administrative Expenses for the quarter rose 35%, totalling $30.29 million relative to last year’s $22.38 million. Impairment losses on trade receivables amounted to $9.91 million (2019: nil).

BPOW reported $6.71 million for Other Income for the first quarter relative to $179,550 recorded for the corresponding period in 2019.

Finance Cost of $309,055 was recorded for the first quarter compared to a finance benefit of $109,434 in the year prior, while Finance Income totalled $16.37 million relative to the $10.39 million for the same quarter in 2019.

Consequently, Profit before taxation reflected a 66% increase year over year to $44.14 million versus $26.56 million booked for the prior year’s corresponding quarter.

After taxation of $11.03 million (2019: $3.17 million), Profit from continuing operations for the first quarter amounted to $33.10 million compared to $23.39 million, a 42% increase year over year.

Profit from discontinued operations was nil relative to $21.30 million reported last year. As such, profit for the period closed at $33.10 million relative to $44.69 million in recorded for the quarter ended July 31, 2019.

Total comprehensive income amounted to $20.57 million for the three months ended July 31, 2020 relative to the $44.69 million booked last year.

Earnings per share for the quarter totaled $0.06 (2019: $0.08), while for the trailing twelve months EPS was $0.12. The number of shares used in this calculation was 564,990,000 Notably, BPOW’s stock price closed the trading period on August 26, 2020 at a price of $3.21.

BPOW further stated that, “the demand for our products remains strong both here and abroad.”

Balance Sheet at a glance: 

As at July 31, 2020, total assets amounted to $1.05 billion, down $23.30 million from the balance of $1.08 billion as at July 31, 2019. The largest contributor to the decrease in assets was ‘Inventories’ which closed the quarter at $177.25 million (2019: $302.38 million).

Shareholders’ Equity increased by approximately 4% amounting to $976.68 million (2019: $942.34 million) with a book value per share of $1.73 (2019: $1.67).

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