November 8, 2021
Wisynco Group Limited for the first quarter ended September 30, 2021, reported total revenue of $9.21 billion a 14% increase when compared with the $8.07 billion reported in 2020.
Cost of sales for the quarter amounted to $5.92 billion, up 15% relative to $5.17 billion reported in 2020. As such, gross profit closed at $3.28 billion, this represents an improvement of 13% when compared to the $2.90 billion booked a year earlier.
Total expenses, for the quarter ended September 30, 2021, rose 5% to close at $2.02 billion (2020: $1.92 billion). Of total expenses, selling and distribution expenses climbed 5% to total $1.65 billion (2020: $1.56 billion), while administrative expenses increased 7% to $378.58 million (2020: $354.05 million). WISYNCO noted, “ Our SD&A expense to sales ratio was 22% for the quarter, compared to 23.8% in the prior year as management continues to exercise control over our costs and are pleased with the continued reduction in the expense to sales ratio.”
Other income for the quarter rose by 4% to $44.59 million (2020: $42.88 million).
WISYNCO registered a 27% increase in operating profit to $1.30 billion (2020: $1.02 billion).
Finance income amounted to $66.74 million, up 36% from the $48.90 million reported in 2020. Finance costs rose 98% to $86.36 million for the year from $43.63 million for 2020. Moreover, the Company reported ‘Share of results of associates’ of $1.63 million for the year (2020: $1.61 million).
Profit before taxation amounted to $1.28 billion, relative to $1.03 billion reported in 2020, a 25% increase year over year. Taxation for the period amounted to $316.29 million (2020: $179.80 million).
Net profit for the quarter increased 14% to $967.01 million relative to $851.24 billion posted in 2020.
Earnings per share (EPS) for the quarter amounted to $0.26 (2020: $0.23), while the twelve months trailing EPS amounted to $0.85. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on November 5, 2021 at $15.77 with a corresponding P/E of 18.58 times.
Balance Sheet at a Glance:
As at September 30, 2021, WISYNCO’s assets totaled $22.47 billion, 7% more than the $21.09 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 16% or $1.04 billion to close at $7.61 billion (2020: $6.57 billion).
Shareholder’s equity closed at $16.03 billion (2020: $13.87 billion). As such, the book value per share was $4.27 (2020: $3.70).
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