August 15, 2025
Tropical Battery Company Limited(Tropical)
Unaudited financials for the nine months ended June 30, 2025:
Tropical Battery Company Limited (Tropical) for the nine months ended June 30, 2025 reported an 8% increase in Revenue totalling $4.63 billion compared to $4.27 billion in the corresponding period last year. Revenue for the third quarter had a 23% decrease to close at $1.46 billion compared to $1.91 billion for the comparable quarter of 2024.
Year to date, Cost of sales amounted to $3.06 billion (2024: $2.91 billion), this represents an increase of 5% year over year. Consequently, gross profit increased by 15% to $1.57 billion compared to $1.36 billion for the nine months ended June 30, 2024. The company booked gross profit of $527.70 million for the third quarter versus $623.26 million reported for the similar quarter of 2024.
Administrative, marketing and selling expenses increased by 55% to close at $1.27 billion (2024: $821.33 million). As a result, Operating profit decreased by 36% from $460.50 million in 2024 to $296.94 million in the period under review. Notably, Other operating income for the nine months ended June 30, 2025 amounted to $8.10 million, a 30% decrease relative to $11.61 million reported in 2024.
Profit before depreciation, net finance costs and taxation for the nine months ended June 30, 2025, amounted to $305.04 million, a 35% decrease relative to $472.10 million reported in 2024. Profit before depreciation, net finance costs and taxation for the third quarter amounted to $115.08 million (2024: $255.11 million). Depreciation totalled $113.24 million, a 92% increase from the corresponding period last year. (2024: $58.98 million).
Finance costs for the six months amounted to $392.83 million compared to $283.31 million reported in 2024. Finance income totaled $57.86 million versus $89.83 million in the prior period. As a result, Net finance costs for the nine months ended June 30, 2025, amounted to $334.97 million, a 73% increase relative to $193.48 million reported in 2024. Net finance costs for the third quarter amounted to $118.33 million (2024: $112.86 million).
The tax charge incurred for the nine months ended June 30, 2025 amounted to $3.40 million (2024: tax credit of $518,153). Net loss for the nine months amounted to $146.57 million, a 167% decrease from the net profit of $220.16 million reported in 2024. For the third quarter, Net loss was $53.11 million (2024: net profit of $121.35 million).
Net loss attributable to shareholders amounted to $134.68 million (2024: profit of $191.38 million).
Consequently, Loss Per Share for the nine months amounted to $0.10 (2024: EPS: $0.15), while Loss Per Share for the quarter totalled $0.04 (2024: EPS: $0.08). The twelve-month trailing LPS was $0.25 and the number of shares used in these calculations was 1,369,377,273.
Notably, Tropical’s stock price closed the trading period on August 13, 2025, at a price of $1.71.
Balance Sheet Highlights
The company’s assets totalled $8.08 billion (2024: $7.59 billion). The movement in total assets was primarily attributable to a $1.12 billion increase in ‘Plant, Property and Equipment’ to $1.31 billion (2024: $188.29 million) partly offset by a 34% decrease in ‘Cash and Cash equivalents’ amounting to $280.83 million (2024: $425.45 million) and 20% decrease in ‘Accounts receivable’ amounting to $985.34 million (2024: $1.23 billion).
Shareholder’s equity was $864.02 million (2024: $1.21 billion), representing a book value per share of $0.63 (2024: $0.89).
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