February 13, 2024
Tropical Battery Company Limited (TROPICAL) for the first quarter ended December 31, 2023, reported a 25% increase in revenue totalling $809.13 million compared to $649.44 million in the corresponding three months last year. Management noted that the increase was primarily due to its successful expansion into new markets.
Cost of sales amounted to $562.03 million (2022: $434.16 million), this represents an increase of 29% year over year. Consequently, gross profit increased by 15% to $247.10 million compared to $215.28 million for the first quarter ended December 31, 2022.
Administrative, marketing and selling expenses increased by 2% to close at $147.41 million (2022: $144.70 million).
Operating profit increased by 41% from $70.58 million in 2022 to $99.69 million for the three months. Other operating income for the first quarter amounted to $6.57 million, a 220% increase relative to $2.05 million reported in 2022.
Profit before depreciation, net finance costs and taxation for the three months amounted to $106.27 million, a 46% increase relative to $72.63 million reported in 2022. Depreciation totalled $17.00 million, a 6% increase from the corresponding period last year (2022: $15.99 million).
Net finance costs for the first quarter ended December 31, 2023, amounted to $17.02 million, a 37% increase relative to $12.46 million reported in 2022 driven by higher finance costs for the period.
There were no taxation charges for the three months (2022: nil). Hence, net profit amounted to $72.24 million (2022: $44.18 million). Net profit attributable to shareholders for the three months amounted to $64.22 million, a 45% increase from the $44.18 million reported in 2022.
Earnings per share (EPS) for the three months amounted to $0.05 (2022: $0.03). The twelve-month trailing EPS was $0.12, and the number of shares used in these calculations was 1,303,750,000.
Notably, TROPICAL’s stock price closed the trading period on February 12, 2024, at a price of $2.70 with a corresponding P/E ratio of 21.64x.
Balance Sheet Highlights:
The company’s assets totalled $2.55 billion (2022: $2.25 billion); a 13% increase year on year largely attributed to a 57% improvement in cash and cash equivalents, which totalled $308.56 million (2022: $195.99 million).
Shareholder’s equity was $1.13 billion (2022: $1.05 billion), representing a book value per share of $0.86 (2022: $0.81).
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