January 18, 2021
Tropical Battery Company Ltd (TROPICAL)
Audited Financial Statements for the Year Ended September 30, 2020:
Tropical Battery Company Limited (TROPICAL) for the year ended September 30, 2020 recorded revenue in the amount of $1.87 billion (2019: $1.74 billion), a 7% increase when compared to 2019. Revenue for the quarter increased by 3%, moving from $492.57 million in 2019 to $505.36 million for the period under review.
Cost of operating revenue amounted to $1.30 billion, which represents a 6% increase in comparison to the $1.23 billion booked in the previous year. Consequently, gross profit amounted to $568.91 million, 11% up from $514.03 million reported the prior year. Gross profit for the quarter ended at $144.89 million (2019: $135.37 million).
Administrative, marketing and selling expenses rose by 10% to close at $440.14 million versus $400.89 million reported in 2019. Operating profit for the period totalled $122.41 million (2019: $114.27 million), while operating profit for the quarter decreased by 14% to end at $30.89 million (2019: $35.86 million). Other operating income for the year amounted to $13.72 million, this represents a 51% increase relative to the $9.09 million booked the previous year.
Impairment loss on trade receivables closed at $6.36 million versus an income of $1.14 million booked twelve months earlier.
Finance costs increase year over year by 133% to a total of $45.02 million (2019: $19.29 million). In addition, Depreciation closed at $33.35 million (2019: $23.87 million).
Finance income for the period totalled $2.82 million relative to $6.38 million in 2019, a 56% decrease year on year. For the quarter, finance loss amounted to $7.14 million relative to a loss of $2.80 million in 2019.
As such, profit before tax closed at $60.58 million for 2020, a 30% decline relative to the $86.58 million booked last year. For the quarter, TROPICAL reported a loss before tax of $1.55 million, relative to a profit of $18.96 million in 2019. Taxes of $31.24 million was reported compared to a tax charge of $23.69 million in 2019. Net Profit amounted to $29.34 million compared to $62.90 million in 2019, a 53% decline. Net loss for the quarter totalled $16.47 million, relative to the net profit of $13.04 million reported in the corresponding period for 2019.
Total comprehensive income for the year amounted to $31.66 million (2019: $50.66 million).
Earnings per share (EPS) for the year amounted to $0.02 versus an EPS of $0.05 for 2019. For the quarter, LPS amounted to $0.013 (2019: EPS $0.010). The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on January 15, 2021 at $1.14 with a corresponding P/E ratio of 50.52 times.
Management indicated that, “The work from home and social distancing procedures implemented to slow the spread of COVID-19, could have had a more severe impact on Tropical Battery’s distribution. However, due to recent innovations and upgrades to our distribution strategy in recent years, the company was able to minimize the effect of less consumer traffic.”
Balance Sheet Highlights:
As at September 30, 2020, total assets amounted to $1.45 billion, compared to its value of $1.35 billion a year ago, an 8% increase year on year. This increase was attributed to an 83% increase in ‘Cash and cash equivalent” which amounted to $262.50 million (2019: $143.24 million) and a 131% increase in ‘Property, plant & equipment’ which totalled $161.91 million (2019: $70.03 million). Right of use assets also increased to $172.40 million (2019: nil).
Shareholder’s Equity as at September 30, 2020 totalled $735.05 million (2019: $547.08 million) resulting in a book value per share of $0.57 (2019: $0.42).
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