May 13, 2022
Tropical Battery Company Limited (TROPICAL) for the six months ended March 31, 2022 recorded revenue in the amount of $1.30 billion (2021: $927.22 million), a 40% increase when compared to 2021. Revenue for the quarter increased by 33%, moving from $476.23 million in 2021 to $635.09 million for the period under review.
Cost of operating revenue amounted to $909.01 million, for the six months ended March 31, 2022, which represents a 41% increase in comparison to the $646.84 million booked in the previous year. Consequently, gross profit amounted to $388.03 million for the six months ended March 31, 2022, 38% up from $280.38 million reported the prior year. Gross profit for the quarter ended at $191.67 million (2021: $144.09 million).
Administrative, marketing and selling expenses, for the six months, rose by 21% to close at $254.90 million versus $210.17 million reported in 2021. Operating profit for the period totalled $133.13 million (2021: $70.22 million), while operating profit for the quarter increased by 36% to end at $51.25 million (2021: $37.61 million). Other operating income for the period amounted to $6.25 million, this represents a 14% increase relative to the $5.51 million booked the previous year.
Finance costs contracted year over year by 4% to a total of $29.24 million (2021: $30.57 million). In addition, Depreciation closed at $31.82 million (2021: $18.49 million).
Finance income for the period totalled $9.11 million relative to $7.89 million in 2021, a 16% increase year on year. For the quarter, finance income amounted to $5.48 million relative to income of $1.92 million in 2021.
As such, profit before tax closed at $87.44 million for 2022, a 153% increase relative to the $34.55 million booked last year. For the quarter, TROPICAL reported a profit before tax of $30.78 million, relative to a profit of $15.51 million in 2021. Taxation of $799,742 was reported for the period (2021: nil).
Net Profit amounted to $86.64 million compared to $34.55 million in 2021, a 151% increase. Net profit for the quarter totalled $29.98 million, relative to the net profit of $15.51 million reported in the corresponding period for 2021.
Earnings per share (EPS) for the six months ended March 31, 2022 amounted to $0.067 versus an EPS of $0.027 for 2021. For the quarter, EPS amounted to $0.023 (2021: $0.012). The trailing twelve months EPS amounted to $0.108. The number of shares used in our calculations amounted to 1,300,000,000 units. TROPICAL closed the trading period on May 13, 2022 at $3.02 with a corresponding P/E ratio of 27.96 times.
Management indicated that, “With our more-than-adequate levels of inventory, we see a bright second half of this fiscal year ahead. We are also still expanding our top-selling retail store, located on Grove Road, just off Half Way Tree Road in Kingston, while will allow us to increase sales at this location even further, and achieve higher profitability, given that retail margins are better than our wholesale margins, while offering greater comfort and convenience for our team members and customers with a substantial increase in square footage. We plan to increase our retail presence island-wide in the coming quarters. We are getting closer with our efforts to acquire profitable companies, and hope to have at least one of them closed before the end of this calendar year.”
Balance Sheet Highlights:
As at March 31, 2022, total assets amounted to $2.08 billion relative to the $1.58 billion reported a year prior. This was mainly attributed to ‘Inventories” which amounted to $913 million, a 79% increase when compared to the $511.06 million a year prior.
Shareholder’s Equity as at March 31, 2022 totalled $886.51 million (2021: $769.60 million) resulting in a book value per share of $0.68 (2021: $0.59).
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