May 16, 2024
Tropical Battery Company Limited (Tropical)
Unaudited financials for the six months ended March 31, 2024:
Tropical Battery Company Limited (Tropical) for the six months ended March 31, 2024, reported a 75% increase in Revenue totaling $2.36 billion compared to $1.35 billion in the corresponding period last year. Revenue for the second quarter had a 121% increase to close at $1.55 billion compared to $700.38 million for the comparable quarter of 2023.
Cost of sales amounted to $1.62 billion (2023: $911.53 million), this represents an increase of 78% year over year. Consequently, gross profit increased by 68% to $735.63 million compared to $438.29 million for the six months ended March 31, 2023. The company booked gross profit of $488.53 million for the second quarter versus $223.01 million reported for the similar quarter of 2023.
Administrative, marketing and selling expenses increased by 48% to close at $452.27 million (2023: $305.21 million), while Operating profit increase by 55% from $133.08 million in 2023 to $206.30 million in the period under review. As a result, other operating income for the six months ended March 31, 2024, amounted to $10.70 million, a 3% decrease relative to $11.04 million reported in 2023.
Profit before depreciation, net finance costs and taxation for the six months ended March 31, 2024, amounted to $217.00 million, a 51% increase relative to $144.12 million reported in 2023. Profit before depreciation, net finance costs and taxation for the second quarter amounted to $110.73 million (2023: $71.48 million). Depreciation totalled $37.44 million, a 17% increase from the corresponding period last year. (2023: $32.00 million).
Net finance costs for the six months ended March 31, 2024, amounted to $80.61 million, a 343% increase relative to $18.19 million reported in 2023. Net finance costs for the second quarter amounted to $63.59 million (2023: $5.73 million).
Net Income for the six months amounted to $98.82 million, a 5% increase comparable to last year’s six months figure of $93.93 million. For the second quarter Net Income decreased by 47% which was $26.58 million compared to the $49.75 million reported for the second quarter of 2023.
Consequently, Earnings Per Share for the six months amounted to $0.08 (2023: EPS: $0.07), while Earnings Per Share for the quarter totaled $0.02 (2023: EPS: $0.04). The twelve-month trailing EPS was $0.10, and the number of shares used in these calculations was 1,303,750,000.
Notably, Tropical’s stock price closed the trading period on May 16, 2024, at a price of $2.20 with a corresponding P/E ratio of 22.43x.
Balance Sheet Highlights
The company’s assets totalled $6.88 billion (2023: $2.29 billion). This was attributable to goodwill of $2.47 billion and accounts receivables of $1.05 billion compared to the $362.77 million of the second quarter for 2023.
Shareholder’s equity was $2.30 billion (2023: $1.05 billion), representing a book value per share of $0.87 (2023: $0.81).
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