August 30, 2021
Wisynco Group Limited for the year ended June 30, 2021, reported total revenue of $31.82 billion a 1% decrease when compared with the $32.17 billion reported in 2020. Total revenues for the quarter amounted to $8.18 billion reflecting an increase of 17% over the $6.98 billion achieved in the corresponding quarter of the previous year. Management noted, “. Our final quarter for Fiscal 2021 resulted in a 17.1% Revenue growth over the same period of the prior year, which almost resulted in Wisynco achieving the same Revenue result as the prior year in what was a very challenging Fiscal Year due to the impact of the COVID-19 pandemic on the local economy. We saw good recovery in all channels during the final quarter and we continue our drive in the export markets which realized a 37% Revenue growth over Fiscal 2020.”
Cost of sales for the year amounted to $20.70 billion, down 2% relative to $21.10 billion reported in 2020. Consequently, gross profit closed at $11.12 billion compared to the $11.07 billion booked a year earlier. Whereas, gross profit for the quarter amounted to $2.98 billion (2020: $2.29 billion).
Total expenses, for the twelve months ended June 30, 2021, rose 13% to close at $7.57 billion (2020: $8.16 billion). Of total expenses, selling and distribution expenses climbed 9% to total $6.15 billion (2020: $6.78 billion), while administrative expenses increased 3% to $1.42 billion (2020: $1.37 billion). Sygnus noted, “Management continued to ensure the containment of expenses during Fiscal 2021. Our expense to sales ratio for the year improved from 25.3% last year to 23.7% this year.”
Other income for the year decreased 29% to $240.58 million (2020: $337 million).
As such, WISYNCO booked a 17% decline in operating profit to $3.79 billion (2020: $3.25 billion). Whereas, for the quarter ended June 30, 2021, operating profit amounted to $1.16 billion (2020: $682.96 million), a 70% increase year over year.
Finance income amounted to $195.53 million, up 41% from the $138.45 million reported in 2020. Finance costs decreased 9% to $153.73 million for the year from $168.15 million for 2020. Moreover, the Company reported ‘Share of loss of associate’ of $29.72 million for the year (2020 share of profit of associate: $984,000).
Profit before taxation amounted to $3.80 billion, relative to $3.22 billion reported in 2020, a 18% increase year over year. Taxation for the period amounted to $730.66 million (2020: $557.57 million). Profit from continuing operation amounted to $3.07 billion relative to $2.66 billion booked for the comparable period in 2020. The Company booked profit from discontinued operations of $139.74 million for the year ended June 30, 2020.
As such, net profit increased 10% to $3.07 billion relative to $2.80 billion posted in 2020. Net profit for the fourth quarter amounted to $857.93 million relative to $464.51 million in 2020. Notably, total comprehensive income for the year amounted to $3.10 billion (2020: $2.84 billion).
Earnings per share (EPS) for the quarter amounted to $0.23 (2020: $0.12), while the EPS for the year end amounted to $0.83 (2020: $0.76). The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on August 30, 2021 at $15.72 with a corresponding P/E of 19.04 times.
Balance Sheet at a Glance:
As June 30, 2021, WISYNCO’s assets totalled $22.37 billion, 16% more than the $19.28 billion recorded last year for the same period. The increase in total assets was largely due to an increase in ‘Cash and Short term deposits’ which rose 55% or $2.71 billion to close at $7.66 billion (2020: $4.95 billion).
Shareholder’s equity closed at $15.05 billion (2020: $12.97 billion). As such, the book value per share was $4.01 (2020: $3.46).
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