May 10, 2023
Wisynco Group Limited for the nine-month ended March 31, 2023, reported total revenue of $36.05 billion, a 27% increase when compared with the $28.40 billion reported in the nine-months ended 2022. Revenue for the quarter amounted to $11.97 billion (2022: $9.70 billion). WISYNCO noted, “ We have resolved some of the production challenges faced in the 2nd quarter and are seeing increased production to meet the increasing demand. The capital program implemented will contribute to bringing stability and expansion to our production capacity as demand in all channels continues to be favorable.”
Cost of sales for the period amounted to $23.36 billion, up 25% relative to $18.68 billion reported in 2022. As such, gross profit closed at $12.68 billion, this represents an increase of 30% when compared to the $9.72 billion booked a year earlier.
Total expenses, for the period ended March 31, 2023, rose 30% to close at $8.02 billion (2022: $6.19 billion). Of total expenses, selling and distribution expenses climbed 30% to total $6.69 billion (2022: $5.17 billion), while administrative expenses increased 30% to $1.33 billion (2022: $1.02 billion). In the third quarter total expenses increased by 30% to $2.69 billion (2022: $2.07 billion). According to Management, “we experienced some incremental Marketing and Promotional costs above plan as well as inflationary increases in variable expenses associated with the increased revenues.”
Other income for the year rose by 87% to $176.47 million (2022: $94.43 million). For the third quarter other income rose 184% from $23 million in 2022 to $65.27 million in 2023.
WISYNCO registered a 34% increase in operating profit to $4.84 billion (2022: $3.62 billion). Third quarter operating profit increased 39% to $1.52 billion (2022:$1.09 billion).
Finance income amounted to $287.89 million, down 29% from the $402.91 million reported in 2022. Finance costs increased by 237% to $297.45 million for the year from $88.24 million for 2022. Moreover, the Company reported loss share of results of associates of $41.02 million relative to the loss of $13.54 million reported a year prior.
Profit before taxation amounted to $4.79 billion, relative to the $3.92 billion reported in 2022, a 22% increase year over year. For the second quarter ended profit before tax came to $1.57 billion in comparison to the $1.10 billion listed in Q3 2022.
Taxation for the period amounted to $1.13 billion (2022: $965.94 million).
Net profit for the period increased 24% to $3.66 billion relative to the $2.96 billion posted in 2022. Net profit for the quarter increased by 39% to $1.15 billion when compared to the previous quarter which closed at $830.97 million in 2022.
Net profit attributable to shareholders amounted to $3.66 billion (2022: $2.96 billion). For the quarter, net profit attributable to shareholders closed at $1.15 billion (2022: $830.97 million).
Earnings per share (EPS) for the period amounted to $0.97 (2022: $0.79), while for the quarter, EPS amounted to $0.31 (2022: $0.22). The twelve months trailing EPS amounted to $1.27. The number of shares used in our calculations is 3,756,250,000. Notably, WISYNCO’s stock price closed the trading period on May 9, 2023, at $16.83 with a corresponding P/E of 13.29 times.
Balance Sheet at a Glance:
As at March 31, 2023, WISYNCO’s assets totaled $29.51 billion, 21% more than the $24.33 billion recorded last year for the same period. The increase in total assets was largely due to an increase in ‘Investment secuirites which rose 60% or $563.41 million to close at $1.51 billion (2022: $941.77 million) and ‘Inventories’ which rose 77% or $2.61 billion to close at $6.00 billion (2022: $3.39 billion). Wisynco noted “Capital expansion activities are well underway, the benefits of which should be realized midway through Fiscal Year 2024. We are excited and optimistic to be embarking on the largest capital expansion ever undertaken by Wisynco. The flexibility and increased output resulting from this expansion program will ensure we meet the current demands of local and export markets and pave the way for additional capacity for growth and future innovations in our varied product lines.”
Shareholder’s equity closed at $20.70 billion (2022: $17.42 billion). As such, the book value per share was $5.51 (2022: $4.64).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer(s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view(s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.