May 11, 2018
Wisynco Group Limited (WISYNCO) for the nine months ended March 31,2018 reported total revenue of $18.06 billion for the nine months ended March 31, 2018, a 14.6% or $2.31 billion increase when compared with the $15.75 billion reported for the same period in 2017. Total revenues for the quarter amounted to $5.82 billion reflecting an increase of 13.5% over the $5.13 billion achieved in the corresponding quarter of the previous year. According to the company, “The third quarter normally represents lower demand for beverages due to the cooler climate in the January to March period which results in lower production and inefficient overhead absorption as compared to periods of higher demand.”
Cost of sales for the period amounted to $11.32 billion, up 12.2% relative to $10.09 billion reported in 2017. Consequently, gross profit rose 19.1% to close at $6.73 billion compared to the $5.66 billion for the same period a year earlier.
Total expenses for the nine months rose 10.8% to close at $4.51 billion (2017: $4.07 billion). Of total expenses, selling and distribution expenses climbed 9.7% to total $3.92 billion (2017: $3.57 billion), while administrative expenses increased 19.0% to $594.15 million (2017: $499.38 million). Total expenses for the third quarter rose 4.4% to $1.51 billion (2017: $1.44 billion). Other income for the nine months contracted 92.2% to $52.33 million (2017: $667.67 million). According to WISYNCO, “Wisynco also conducts preventative maintenance in the 3rd quarter of each Fiscal Year which results in some additional production expenses to ensure continuous efficiencies. The construction of our cold storage facilities continues, and the expectation is now for completion at the end of the 4th quarter which should result in reduced operating cost and improved service levels.”
As such, WISYNCO booked a 1% increase in operating profit to $2.27 billion (2017: $2.25 billion).
Finance income for the period amounted to $50.55 million, down 59.5% from the $124.97 million reported for the corresponding period in 2017. Finance costs increased 48.7% to $177.12 million for the period from $119.14 million for 2017.
Profit before taxation amounted to $2.15 billion, relative to $2.26 billion reported in 2017, a 4.8% decline year over year. Taxation for the period amounted to $460.92 million (2017: $431.80 million). Profit from continuing operation amounted to $1.69 billion relative to $1.82 billion booked for the comparable period in 2017. Profit from discontinued operations totalled $41.56 million versus $133.02 million in 2017. As such, net profit of $1.73 billion (2017: $1.96 billion) was posted for the nine months ended March 31, 2018, representing a 11.7% decline year over year. Net profit for the third quarter amounted to $504.28 million relative to $820.24 million in 2017, a 38.5% decline year over year.
Earnings per share (EPS) for the quarter amounted to $0.13 (2017: $0.22), while the EPS for the nine months amounted to $0.46 (2017: $0.52). The twelve-month trailing EPS amounted to $0.51. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on May 10, 2018 at $10.32.
Balance Sheet at a Glance:
As March 31 2018, WISYNCO’s assets totalled $13.86 billion, $1.03 billion more than the $12.83 billion recorded last year for the same period. The increase in total assets was largely due to increases in ‘property, plant and equipment’ by $1.56 billion to close at $6.06 billion (2017: $4.50 billion).
Shareholder’s equity closed at $8.35 billion (2017: $7.67 billion). As such, the book value per share was $2.23 (2017: $2.05).
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