August 12, 2021
Tropical Battery Company Limited (TROPICAL) for the nine months ended June 30, 2021, recorded revenue in the amount of $1.49 billion (2020: $1.36 billion), a 6% increase when compared to 2020. Revenue for the quarter increased by 24%, moving from $420.41 million in 2020 to $521.17 million for the period under review. According to management, “This positive increase of $101 million was achieved through better inventory receivals in the quarter, giving us adequate stock levels to produce the highest revenue ever achieved in a single quarter, in our 70 plus year history.”
Cost of operating revenue amounted to $1 billion, which represents a 7% increase in comparison to the $937.62 million booked in the previous year. Consequently, gross profit amounted to $445.17 million, 5% up from $424.17 million reported the prior year. Gross profit for the quarter ended at $164.78 million (2020: $131.07 million).
Administrative, marketing and selling expenses fell by 3% to close at $325.44 million versus $336.29 million reported in 2020. Operating profit for the period totalled $119.73 million (2020: $87.88 million), while operating profit for the quarter increased by 93% to end at $49.66 million (2020: $25.69 million). Other operating income for the period amounted to $7.47 million, this represents a 140% increase relative to the $3.12 million booked the previous year.
Finance costs increase year over year by 69% to a total of $45.38 million (2020: $26.79 million). In addition, Depreciation closed at $27.93 million (2020: $21.94 million).
Finance income for the period totalled $5.50 million relative to $8.67 million in 2020, a 37% decrease year on year. For the quarter, no finance income was reported relative to income of $4.09 million in 2020.
As such, profit before tax closed at $59.39 million for 2021, a 17% increase relative to the $50.94 million booked last year. For the quarter, TROPICAL reported a profit before tax of $24.71 million, relative to a profit of $16.51 million in 2020. No taxation was reported for the period compared to a tax charge of $26.97 million in 2020.
Net Profit amounted to $59.39 million compared to $23.97 million in 2020, an 148% increase. Net profit for the quarter totalled $24.71 million, relative to the net profit of $5.16 million reported in the corresponding period for 2020.
Earnings per share (EPS) for the nine months ended June 30, 2021, amounted to $0.046 versus an EPS of $0.018 for 2020. For the quarter, EPS amounted to $0.019 (2020: $0.004). The trailing twelve months EPS amounted to $0.050. The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on August 11, 2021 at $1.31 with a corresponding P/E ratio of 26.29 times.
Management indicated that, “We continue to explore and negotiate new product opportunities that fall in line with our core values and have significant growth potential. To this end we anticipate concluding on one of these opportunities within the next six months.”
Balance Sheet Highlights:
As at June 30, 2021, total assets amounted to $1.61 billion relative to the $1.44 billion booked one year prior. This was mainly attributed to ‘Property, plant & equipment which amounted to $180.84 million (2020: $101.87 million) and ‘Accounts receivable’ which totalled $370.36 million (2020: $324.81 million).
Shareholder’s Equity as at June 30, 2021 totalled $781.44 million (2020: $571.04 million) resulting in a book value per share of $0.60 (2020: $0.44).
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