Wisynco reports 29% increase in nine months net profit

Date: May 2, 2019

Wisynco Group Limited for the nine months ended March 31,2019, reported total revenue of $20.84 billion for the nine months ended March 31, 2019, a 15% increase when compared with the $18.06 billion reported for the same period in 2018. Total revenues for the quarter amounted to $6.91 billion reflecting an increase of 19% over the $5.82 billion achieved in the corresponding quarter of the previous year. Management noted, “During the quarter the Company successfully introduced its first flavour of low sugar Sparkling product under the Cran Wata brand.”

Cost of sales for the period amounted to $12.82 billion, up 13% relative to $11.32 billion reported in 2018. Consequently, gross profit rose 19% to close at $8.02 billion compared to the $6.73 billion for the same period a year earlier. The Company noted, “Much of these improvements in gross profit are as a result of increased efficiencies starting to be realized from new capital investments made in the past year.”

Total expenses for the nine months rose 16% to close at $5.20 billion (2018: $4.50 billion). Of total expenses, selling and distribution expenses climbed 12% to total $4.40 billion (2018: $3.92 billion), while administrative expenses increased 37% to $799.94 million (2018: $584.64 million). Total expenses for the third quarter rose 14% to $1.72 billion (2018: $1.51 billion).

Other income for the nine months increased 63% to $85.39 million (2018: $52.33 million). As such, WISYNCO booked a 27% increase in operating profit to $2.90 billion (2018: $2.28 billion).

Finance income for the period amounted to $63.38 million, up 25% from the $50.55 million reported for the corresponding period in 2018. Finance costs increased 70% to $301.79 million for the period from $177.12 million for 2018.  The Company noted, “Finance expenses included a loss of $69.3 million due to the revaluation of our USD deposits as the Jamaican Dollar revalued from a rate of 125.89 at December 31, 2018 to 123.57 at March 31, 2019.”

Profit before taxation amounted to $2.66 billion, relative to $2.16 billion reported in 2018, a 23% increase year over year. Taxation for the period amounted to $422.98 million (2018: $460.92 million). Profit from continuing operation amounted to $2.24 billion relative to $1.70 billion booked for the comparable period in 2018. The Company booked no profit from discontinued operations relative to $41.55 million booked in 2018. As such, net profit of $2.24 billion (2018: $1.74 billion) was posted for the nine months ended March 31, 2019, representing a 29% increase year over year. Net profit for the third quarter amounted to $693.92 million relative to $504.28 million in 2018, a 38% increase year over year.

Earnings per share (EPS) for the quarter amounted to $0.19 (2018: $0.13), while the EPS for the nine months amounted to $0.60 (2017: $0.46). The twelve-month trailing EPS amounted to $0.75. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on May 1, 2019 at $13.95.

Management noted, “The Company recently announced an exciting 30% investment in JP Snacks Caribbean Ltd and commenced the exclusive distribution of the St Mary’s range of Tropical Chips in Jamaica, at the end of April 2019.”

Balance Sheet at a Glance:

As March 31 2019, WISYNCO’s assets totalled $16.25 billion, 17% more than the $13.93 billion recorded last year for the same period.  The increase in total assets was largely due to increases in ‘Inventories’ by $1.31 billion to close at $2.93 billion (2018: $2.04 billion).

Shareholder’s equity closed at $10.39 billion (2018: $8.35 billion).  As such, the book value per share was $2.77 (2018: $2.23).


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