November 8, 2022
Wisynco Group Limited for the first quarter ended September 30, 2022, reported total revenue of $11.95 billion a 30% increase when compared with the $9.21 billion reported in 2021. WISYNCO noted, “We are encouraged by the increase demand for our products in all channels including exports which were up 10% over the same quarter of the prior year. The supply chain challenge continued into this quarter however we are seeing improvement.”
Cost of sales for the quarter amounted to $7.62 billion, up 29% relative to $5.92 billion reported in 2021. As such, gross profit closed at $4.33 billion, this represents an increase of 32% when compared to the $3.28 billion booked a year earlier.
Total expenses, for the quarter ended September 30, 2022, rose 27% to close at $2.58 billion (2021: $2.02 billion). Of total expenses, selling and distribution expenses climbed 29% to total $2.12 billion (2021: $1.65 billion), while administrative expenses increased 20% to $454.83 million (2021: $378.58 million). According to Management, “ Inflationary increases and variable expenses, which increase with Revenues are the primary reasons for the expenditure growth however these increases are at a slower rate when compared to the rate of growth in Revenues.”
Other income for the year rose by 29% to $57.53 million (2021: $44.59 million).
WISYNCO registered a 39% increase in operating profit to $1.80 billion (2021: $1.30 billion).
Finance income amounted to $85.22 million, up 28% from the $66.74 million reported in 2021. Finance costs increased by 73% to $149.51 million for the year from $86.36 million for 2021. Moreover, the Company reported loss share of results of associates of $11.36 million relative to the gain of 1.63 million reported a year prior.
Profit before taxation amounted to $1.73 billion, relative to the $1.28 billion reported in 2021, a 35% increase year over year. Taxation for the period amounted to $430.93 million (2021: $316.29 million).
Net profit for the quarter increased 34% to $1.30 billion relative to the $967.01 million posted in 2021.
Earnings per share (EPS) for the quarter amounted to $0.35 (2021: $0.26), while the twelve months trailing EPS amounted to $1.17. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on November 7, 2022, at $17.82 with a corresponding P/E of 15.27 times.
Balance Sheet at a Glance:
As at September 30, 2022, WISYNCO’s assets totaled $26.19 billion, 17% more than the $22.47 billion recorded last year for the same period. The increase in total assets was largely due to an increase in ‘Inventories’ which rose 79% or $2.30 billion to close at $5.24 billion (2021: $2.93 billion).
Shareholder’s equity closed at $19.12 billion (2021: $16.03 billion). As such, the book value per share was $5.09 (2021: $4.27).
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