August 12, 2022
Tropical Battery Company Limited (TROPICAL) for the nine months ended June 30, 2022, recorded revenue in the amount of $1.96 billion (2021: $1.45 billion), a 35% increase when compared to 2021. Revenue for the quarter increased by 27%, moving from $521.17 million in 2021 to $661.84 million for the period under review.
Cost of operating revenue amounted to $1.36 billion, which represents a 36% increase in comparison to the $1 billion booked in the previous year. Consequently, gross profit amounted to $595.58 million, 34% up from $445.17 million reported the prior year. Gross profit for the quarter ended at $207.55 million (2021: $164.78 million).
Administrative, marketing and selling expenses rose by 18% to close at $383.63 million versus $325.44 million reported in 2021. Operating profit for the period totalled $211.95 million (2021: $119.73 million), while operating profit for the quarter increased by 51% to end at $75.06 million (2021: $49.66 million). Other operating income for the period amounted to $10.17 million, this represents a 36% increase relative to the $7.47 million booked the previous year.
Finance costs increase year over year by 14% to a total of $51.83 million (2021: $45.38 million). In addition, Depreciation closed at $45.76 million (2021: $27.93 million).
Finance income for the period totalled $20.52 million relative to $5.50 million in 2021, a 273% year on year increase. For the quarter, finance income totalled $11.41 million (2021: nil).
Profit before tax for the period closed at $145.04 million, a 144% increase relative to the $59.39 million booked last year. For the quarter, TROPICAL reported a profit before tax of $53.85 million, relative to a profit of $24.71 million in 2021. Taxation for the period was $799,742 (2021: nil).
Net Profit amounted to $144.24 million compared to $59.39 million in 2021, an 143% increase. Net profit for the quarter totalled $53.85 million, relative to the net profit of $24.71 million reported in the corresponding period for 2021.
Earnings per share (EPS) for the nine months ended June 30, 2022, amounted to $0.111 versus an EPS of $0.046 for 2021. For the quarter, EPS amounted to $0.041 (2021: $0.019). The trailing twelve months EPS amounted to $0.133. The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on August 12, 2022 at $2.66 with a corresponding P/E ratio of 19.97 times.
Management indicated that, “We continue to see strong demands for our product lines, especially the new renewable energy lithium ion phosphate batteries and solar panels. We are getting closer with our efforts to acquire profitable companies. We are far advanced in the due diligence process with one now, and hope to have this one closed before the end of this calendar year.”
Balance Sheet Highlights:
As at June 30, 2022, total assets amounted to $1.92 billion relative to the $1.63 billion booked one year prior. This was mainly attributed to ‘Inventories’ which amounted to $787.76 million (2021: $492.33 million).
Shareholder’s Equity as at June 30, 2022 totalled $944.12 million (2021: $781.44 million) resulting in a book value per share of $0.73 (2021: $0.60).
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.