TROPICAL reports 123% increase in year-end net profit

December 16, 2022

Tropical Battery Company Limited (TROPICAL) for the year ended September 30, 2022, recorded revenue in the amount of $2.63 billion (2021: $2 billion), a 31% increase when compared to 2021. Revenue for the quarter increased by 21%, moving from $548.68 million in 2021 to $666.45 million for the period under review.

Cost of operating revenue amounted to $1.85 billion, which represents a 34% increase in comparison to the $1.38 billion booked in the previous year. Consequently, gross profit amounted to $776.05 million, 25% up from $619.44 million reported the prior year. Gross profit for the quarter ended at $180.47 million (2021: $174.27 million).

Administrative, marketing and selling expenses rose by 15% to close at $511.90 million versus $444 million reported in 2021. Operating profit for the period totalled $264.15 million (2021: $169.16 million), while operating profit for the quarter grew by 6% to end at $52.20 million (2021: $49.43 million). Other operating income for the year amounted to $12.83 million, this represents a 46% decline relative to the $23.58 million booked the previous year.

Impairment loss on trade receivables closed at nil versus a loss of $6.28 million booked twelve months earlier.

Finance costs increase year over year by 13% to a total of $71.36 million (2021: $62.98 million). In addition, Depreciation closed at $53.71 million (2021: $52.12 million).

Finance income for the period totalled $45.56 million relative to $9.89 million in 2021, a 361% increase year on year. For the quarter, finance income amounted to $25.04 million relative to $4.39 million in 2021.

As such, profit before tax closed at $197.48 million for 2022, a 126% increase relative to the $87.52 million booked last year. For the quarter, TROPICAL reported a profit before tax of $52.43 million, relative to a profit of $28.13 million in 2021. Tax charge of $462,155 was reported compared to a tax credit of $808,044 in 2021. Net Profit amounted to $197.01 million compared to $88.33 million in 2021, a 123% increase. Net profit for the quarter totalled $52.77 million, relative to the net profit of $28.94 million reported in the corresponding period for 2021.

Total comprehensive income for the year amounted to $207.94 million (2021: $103.83 million).

Earnings per share (EPS) for the year amounted to $0.15 versus an EPS of $0.07 for 2021. For the quarter, EPS amounted to $0.041 (2021: EPS $0.022). The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on December 16, 2022 at $2.43 with a corresponding P/E ratio of 16.18 times.

Balance Sheet Highlights:

As at September 30, 2022, total assets amounted to $2.04 billion, compared to its value of $1.74 billion a year ago, a 17% increase year on year. This increase was attributed to a 57% increase in ‘Due from related companies’ which amounted to $247.84 million (2021: $157.40 million) and a 31% increase in ‘Inventories’ which totalled $608.59 million (2021: $795.13 million).

Shareholder’s Equity as at September 30, 2022 totalled $1.01 billion (2021: $825.87 million) resulting in a book value per share of $0.78 (2021: $0.64).