May 06, 2022
Wisynco Group Limited for the nine months ended March 31, 2022, reported total revenue of $28.40 billion a 20% increase when compared with the $23.64 billion reported for the same period in 2021. Total revenues for the quarter amounted to $9.70 billion reflecting an increase of 28% over the $7.60 billion achieved in the corresponding quarter of the previous year. Management noted, “The $9.7 billion in revenues for the quarter represent the highest in the company’s history, an increase of 27.8% above the $7.6 billion achieved in the corresponding quarter of the previous year. Revenues were driven by strong demand in all product categories and channels. Usually, our Q1 and Q2 Revenue patterns represent our higher earning quarters, however this Fiscal Q3 trended higher than Fiscal Q1 and Q2, reflecting the anticipated bouncing back of our economy from the Covid measures being relaxed. Additionally, our increased focus on Exports have continued driving growth in the channel and we are embarking on additional strategies to continue this trajectory.”
Cost of sales for the nine months ended March 31, 2022 amounted to $18.68 billion, up 20% relative to $15.51 billion reported in 2021. Consequently, gross profit rose 20% to close at $9.72 billion compared to the $8.13 billion for the same period a year earlier. The Company noted, “Our Gross Margin at 32.3% was 170 basis points lower than the 34% for the corresponding quarter in the prior year due mainly to our LNG plant experiencing disruption in energy supply resulting in the company having to spend an additional $81m to purchase electricity. Additionally, we had production downtime which led to some higher costs of production as well as increased input costs.” Whereas, gross profit for the quarter amounted to $3.14 billion (2021: $2.58 billion).
Total expenses, for the nine months ended March 31, 2022, rose 10% to close at $6.19 billion (2021: $5.61 billion). Of total expenses, selling and distribution expenses increased by 13% to total $5.17 billion (2021: $4.58 billion), while administrative expenses decreased 1% to $1.02 billion (2021: $1.03 billion). Total expenses for the third quarter rose 10% to $2.07 billion (2021: $1.88 billion).
Other income for the nine months decreased 13% to $94.43 million (2021: $108.30 million). Notwithstanding, WISYNCO booked a 38% increase in operating profit to $3.62 billion (2021: $2.63 billion). Whereas, for the quarter ended March 31, 2022, operating profit amounted to $1.09 billion (2021: $733.42 million), a 49% increase.
Finance income nine months ended March 31, 2022 amounted to $402.91 million, up 118% from the $184.95 million reported for the corresponding period in 2021. Finance costs decreased 18% to $88.24 million for the period from $107.06 million for 2021.
Moreover, the Company reported share of loss of associate of $13.54 million for the nine months ended March 31, 2022 relative to share of loss of associate of $27.55 million in the corresponding period of 2021.
Profit before taxation amounted to $3.92 billion, relative to $2.68 billion reported in 2021, a 46% increase year over year. Taxation for the period amounted to $965.94 million (2021: $465.29 million).
Net profit increased 34% to $2.96 billion relative to $2.21 billion that was posted for the nine months ended March 31, 2021. Net profit for the third quarter amounted to $830.97 million relative to $672.63 million in 2021, a 24% increase year over year. Notably, total comprehensive income for the nine months ended March 31, 2022 amounted to $3.07 billion (2021: $2.24 billion). Whereas, total comprehensive income for the third quarter ended March 31, 2022 amounted to $947.48 million (2021: $675.95 million).
Net profit attributable to shareholders for the nine months totalled $2.96 billion (2021: $2.21 billion) while for the quarter net profit attributable to shareholders amounted to $830.97 million (2021: $672.63 million).
Earnings per share (EPS) for the quarter amounted to $0.22 (2021: $0. 8), while the EPS for the nine months amounted to $0.79 (2021: $0.59). The twelve-month trailing EPS amounted to $1.02. The number of shares used in our calculations is 3,756,250,000. Notably, WISYNCO’s stock price closed the trading period on May 05, 2022 at $23.17 with a corresponding P/E ratio of 22.81 times.
Balance Sheet at a Glance:
As March 31, 2022, WISYNCO’s assets totalled $24.33 billion, 18% more than the $20.66 billion recorded last year for the same period. The increase in total assets was largely due to increases in ‘Cash and Short term Deposits’ by 25% or $1.70 billion to close at $8.60 billion (2021: $6.90 billion).
Shareholder’s equity closed at $17.42 billion (2021: $14.90 billion). As such, book value per share was $4.64 (2021: $3.97)
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