February 8, 2024
Wisynco Group Limited (WISYNCO) for the six months ended December 31, 2023, reported a 12% increase in Revenue totaling $26.98 billion compared to $24.07 billion in the corresponding period last year. Revenue for the second quarter had a 9% increase to close at $13.25 billion compared to $12.13 billion for the comparable quarter of 2022. Management noted, “Demand for our products continues, however our new high speed filler machine was commissioned around the third week of December, which impacted our ability to deliver our products to customers in the volume and variety demanded in the peak season.”
Cost of Sales amounted to $17.77 billion (2022: $15.54 billion), this represents an increase of 14% year over year. Consequently, gross profit increased by 8% to $9.22 billion compared to $8.54 billion for the six months ended December 31, 2022. The company booked gross profit of $4.41 billion for the second quarter versus $4.21 billion reported for the similar quarter of 2022.
Other Income increased by 10% to close at $122.74 million (2022: $111.20 million), while Selling and distribution expenses increased by 13% from $4.44 billion in 2022 to $5.03 billion in the period under review. Also, administration expenses for the six months ended December 31, 2023, amounted to $1.02 billion, a 14% increase relative to $893.57 million reported in 2022.
Wisynco highlighted, “During the quarter under review, we experienced some incremental expenses which was anticipated as we hired talent for our expansionary projects. The impact of inflation along with significant increases in some key categories, specifically general insurance and security, and not getting the expected increased Revenue from the capacity constraints, also contributed to the increased expense to sales ratio.”
Operating Profit for the six months ended December 31, 2023, amounted to $3.29 billion, a 1% decrease relative to $3.32 billion reported in 2022. Operating Profit for the second quarter amounted to $1.36 billion (2022: $1.51 billion).
Net finance income for the six months ended December 31, 2023, totalled $309.06 million, relative to net finance cost of $73.01 million reported in the corresponding period last year.
Profit Before Tax for the six months ended December 31, 2023, amounted to $3.56 billion, a 10% increase relative to $3.22 billion reported in 2022. Profit Before Tax for the second quarter amounted to $1.485 billion (2022: $1.492 billion).
Taxation for the six months ended December 31, 2023, had a 11% increase to reach $786.57 million (2022: $711.20 million). As such, Net Profit for the six months amounted to $2.77 billion, a 10% increase from the $2.51 billion reported in 2022. For the second quarter, Net Profit was $1.22 billion (2022: $1.21 billion).
Consequently, Earnings Per Share for the six months amounted to $0.74 (2022: EPS: $0.67), while Earnings Per Share for the quarter totaled $0.32 (2022: EPS: $0.32). The twelve-month trailing EPS was $1.38 and the number of shares used in these calculations was 3,761,250,000.
Notably, WISYNCO’s stock price closed the trading period on February 07, 2024, at a price of $22.25 with a corresponding P/E ratio of 16.12x.
Balance Sheet Highlights
The company’s assets totalled $33.75 billion (2022: $27.10 billion). Management highlighted, “Our noncurrent investment securities have increased to $2.9 billion, an increase of $1.6 billion since our June 30, 2023, year-end, as we look to place funds in longer term, higher interest rate bearing securities”.
Shareholder’s equity was $23.94 billion (2022: $20.26 billion), representing a book value per share of $6.37 (2022: $5.39).
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