August 8, 2024

Unaudited financials for the nine months ended June 30, 2024:

Tropical Battery Company Limited (Tropical) for the nine months ended June 30, 2024, reported a 100% increase in Revenue totalling $4.27 billion compared to $2.13 billion in the corresponding period last year. Revenue for the third quarter had a 144% increase to close at $1.91 billion compared to $782.84 million for the comparable quarter of 2023.

Cost of sales amounted to $2.91 billion (2023: $1.47 billion), this represents an increase of 98% year over year. Consequently, gross profit increased by 104% to $1.36 billion compared to $666.95 million for the nine months ended June 30, 2023. The company booked gross profit of $623.26 million for the third quarter versus $228.66 million reported for the similar quarter of 2023.

Administrative, marketing and selling expenses increased by 74% to close at $821.33 million (2023: $471.64 million), while Operating profit increase by 136% from $195.32 million in 2023 to $460.50 million in the period under review. Consequently, other operating income for the nine months ended June 30, 2024, amounted to $11.61 million, a 33% decrease relative to $17.24 million reported in 2023.

Profit before depreciation, net finance costs and taxation for the nine months ended June 30, 2024, amounted to $472.10 million, a 122% increase relative to $212.55 million reported in 2023. Profit before depreciation, net finance costs and taxation for the third quarter amounted to $255.11 million (2023: $68.43 million). Depreciation totalled $58.98 million a 19% increase from the corresponding period last year. (2023: $49.59 million).

Net finance costs for the nine months ended June 30, 2024, amounted to $193.48 million, a 541% increase relative to $30.20 million reported in 2023. Net finance costs for the third quarter amounted to $112.86 million (2023: $12.01 million).

Net profit for the nine months amounted to $220.16 million, a 66% increase from the $132.76 million reported in 2023. For the third quarter, Net income was $121.35 million (2023: $38.83 million).

Consequently, Earnings Per Share for the nine months amounted to $0.15 (2023: EPS: $0.10), while Earnings Per Share for the quarter totalled $0.09 (2023: EPS: $0.03). The twelve-month trailing EPS was $0.15, and the number of shares used in these calculations was 1,303,750,000.

Notably, Tropical’s stock price closed the trading period on August 07, 2024, at a price of $2.15 with a corresponding P/E ratio of 14.75x.

Balance Sheet Highlights

The company’s assets totalled $7.59 billion (2023: $2.61 billion). This increase was attributable to Goodwill which amounted to $2.95 billion for the nine months (2023: $18.70 million).  Additionally, Accounts Receivable also contributed to the increase equating to $1.22 billion for the nine months (2023: $514.51 million).

Shareholder’s equity was $1.21 billion (2023: $1.11 billion), representing a book value per share of $0.93 (2023: $0.85).

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.