May 17, 2021
Tropical Battery Company Limited (TROPICAL) for the six months ended March 31, 2021 recorded revenue in the amount of $927.22 million (2020: $941.38 million), a 2% decrease when compared to 2020. Revenue for the quarter increased by 7%, moving from $433.15 million in 2020 to $476.23 million for the period under review.
Cost of operating revenue amounted to $646.84 million, which represents a 0.01% increase in comparison to the $646.75 million booked in the previous year. Consequently, gross profit amounted to $280.38 million, 5% down from $294.63 million reported the prior year. Gross profit for the quarter ended at $144.09 million (2020: $145.43 million).
Administrative, marketing and selling expenses fell by 9% to close at $210.17 million versus $231.13 million reported in 2020. Operating profit for the period totalled $70.22 million (2020: $63.50 million), while operating profit for the quarter increased by 50% to end at $37.61 million (2020: $25.03 million). Other operating income for the period amounted to $5.51 million, this represents a 130% increase relative to the $2.40 million booked the previous year.
Finance costs increase year over year by 66% to a total of $30.57 million (2020: $18.47 million). In addition, Depreciation closed at $18.49 million (2020: $14.34 million).
Finance income for the period totalled $7.89 million relative to $1.37 million in 2020, a 477% increase year on year. For the quarter, finance income amounted to $1.92 million relative to income of $1.37 million in 2020.
As such, profit before tax closed at $34.55 million for 2021, a 0.3% increase relative to the $34.45 million booked last year. For the quarter, TROPICAL reported a profit before tax of $15.51 million, relative to a profit of $11.55 million in 2020. No taxation was reported for the period compared to a tax charge of $15.62 million in 2020.
Net Profit amounted to $34.55 million compared to $18.83 million in 2020, an 83% increase. Net profit for the quarter totalled $15.51 million, relative to the net profit of $3.74 million reported in the corresponding period for 2020.
Earnings per share (EPS) for the six months ended March 31, 2021 amounted to $0.027 versus an EPS of $0.014 for 2020. For the quarter, EPS amounted to $0.012 (2020: $0.003). The trailing twelve months EPS amounted to $0.035. The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on May 14, 2021 at $1.20 with a corresponding P/E ratio of 34.62 times.
Management indicated that, “We are accelerating activities related to the eStore project. The eStore will allow customers to shop online and via a mobile app. We will also implement a phased product delivery and incorporate the mobile response application into the eStore platform. We plan to launch the eStore by June 2021.”
Balance Sheet Highlights:
As at March 31, 2021, total assets amounted to $1.58 billion. This was mainly attributed to ‘Account receivables” which amounted to $365.82 million and ‘ Inventories’ which totalled $511.06 million.
Shareholder’s Equity as at March 31, 2021 totalled $769.60 million resulting in a book value per share of $0.59.
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