December 14, 2021
Tropical Battery Company Limited (TROPICAL) for the year ended September 30, 2021 recorded revenue in the amount of $2 billion (2020: $1.87 billion), a 7% increase when compared to 2020. Revenue for the quarter increased by 9%, moving from $505.36 million in 2020 to $548.68 million for the period under review.
Cost of operating revenue amounted to $1.38 billion, which represents a 6% increase in comparison to the $1.30 billion booked in the previous year. Consequently, gross profit amounted to $619.44 million, 9% up from $568.91 million reported the prior year. Gross profit for the quarter ended at $174.27 million (2020: $144.74 million).
Administrative, marketing and selling expenses rose marginally by 1% to close at $443 million versus $440.14 million reported in 2020. Operating profit for the period totalled $169.16 million (2020: $122.41 million), while operating profit for the quarter grew by 43% to end at $49.43 million (2020: $34.53 million). Other operating income for the year amounted to $23.58 million, this represents a 72% increase relative to the $13.72 million booked the previous year.
Impairment loss on trade receivables closed at $6.28 million versus a loss of $6.36 million booked twelve months earlier.
Finance costs increase year over year by 40% to a total of $62.98 million (2020: $45.02 million). In addition, Depreciation closed at $52.12 million (2020: $33.35 million).
Finance income for the period totalled $9.89 million relative to $2.82 million in 2020, a 250% increase year on year. For the quarter, finance income amounted to $4.39 million relative to a loss of $5.84 million in 2020.
As such, profit before tax closed at $87.52 million for 2021, a 44% increase relative to the $60.58 million booked last year. For the quarter, TROPICAL reported a profit before tax of $28.13 million, relative to a profit of $9.64 million in 2020. Tax credit of $808,044 was reported compared to a tax charge of $31.24 million in 2020. Net Profit amounted to $88.33 million compared to $29.34 million in 2020, a 201% increase. Net profit for the quarter totalled $28.94 million, relative to the net profit of $5.37 million reported in the corresponding period for 2020.
Total comprehensive income for the year amounted to $103.83 million (2020: $31.66 million).
Earnings per share (EPS) for the year amounted to $0.07 versus an EPS of $0.02 for 2020. For the quarter, EPS amounted to $0.022 (2020: EPS $0.004). The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on December 13, 2021 at $1.32 with a corresponding P/E ratio of 19.43 times.
Management indicated that, “The work from home and social distancing procedures implemented to slow the spread of COVID19, did not have a severe impact on company’s distribution system. This was due to innovations and upgrades to the distribution strategy in recent years which enabled the company to minimize the effect of less consumer traffic.”
Balance Sheet Highlights:
As at September 30, 2021, total assets amounted to $1.74 billion, compared to its value of $1.45 billion a year ago, a 20% increase year on year. This increase was attributed to an 103% increase in ‘Inventories” which amounted to $608.59 million (2020: $299.61 million) and a 17% increase in ‘Accounts Receivable’ which totalled $351.24 million (2020: $299.99 million).
Shareholder’s Equity as at September 30, 2021 totalled $825.87 million (2020: $735.05 million) resulting in a book value per share of $0.64 (2020: $0.57).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
