TROPICAL records 8% increase in six-month net profit

May 15, 2023


Tropical Battery Company Limited (TROPICAL) for the six months ended March 31, 2023:

Revenue increased 4% to $1.35 billion (2022: $1.30 billion). For the quarter, revenue increased 10% to $700.38 million (2022: $635.09 million). Notably, this represents the Company’s highest quarterly revenue.

Gross profit increased 13% to $438.29 million (2022: $388.03 million). For the quarter, gross profit increased 16% to $223.01 million (2022: $191.67 million).

Administration, marketing and selling expenses increased 20% to $305.21 million (2022: $254.90 million).

Operating profit declined marginally to $133.08 million (2022: $133.13 million). For the quarter, operating profit increased 22% to $62.50 million (2022: $51.25 million).

Net finance costs declined 10% to $18.19 million (2022: $20.12 million).

Net profit increased 8% to $93.93 million (2022: $86.64 million). For the quarter, net profit increased 66% to $49.75 million (2022: $29.98 million).

Earnings per share (EPS) amounted to $0.072 (2022: $0.067). For the quarter, EPS amounted to $0.038 (2022: $0.023). The trailing twelve-month EPS amounted to $0.157. The number of shares used in the calculations is 1,300,000,000. TROPICAL’s stock price closed the trading period on May 12, 2023 at $2.04 with a corresponding P/E ratio of 12.98x.

Management noted that conventional battery sales currently constitute approximately 80% of total company revenue, with Tropical Battery accounting for around 65% of all batteries sold in the Jamaican market. While TROPICAL’s significant market share in Jamaica is commendable, Management noted that it has presented challenges in achieving its target annual revenue growth rate of 15% to 20%. To mitigate this, a multi-faceted growth strategy was implemented, and the Company has since been actively expanding into new product lines within the renewable energy and electric vehicle markets.

Balance Sheet Highlights:

Total assets as at March 31, 2023 increased 10% to $2.29 billion (2022: $2.08 billion). This movement was primarily due to an 80% increase in ‘Due from related companies’ to $305.26 million (2022: $170.02 million). Notably, ‘Inventories’ increased 13% to $1.03 billion (2022: $913 million).

Shareholders’ equity as at March 31, 2023 increased 19% to $1.05 billion (2022: $886.51 million) resulting in a book value per share of $0.81 (2022: $0.68).



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