February 04, 2022

Wisynco Group Limited for the six months ended December 31, 2021, reported total revenue of $18.70 billion a 17% increase when compared with the $16.04 billion reported in 2021. Revenue for the second quarter rose 19% to $9.49 billion compared to $7.98 billion in 2020. According to Wisynco, “We have seen a continued recovery in our revenues with all channels increasing at vibrant levels. Exports for the quarter were up 103% when compared to the same quarter of the previous year. Our increased efforts and focus have resulted in improved results in this area and we have noticed wider consumer acceptance for our products in these important export markets.”

Cost of sales for the period amounted to $12.12 billion, up 15% relative to $10.49 billion reported for the corresponding period in 2020. As such, gross profit closed at $6.58 billion, this represents an improvement of 19% when compared to the $5.55 billion booked a year earlier. Gross profit for the second quarter improved 24% to close at $3.30 billion (2020: $2.66 billion).

Total expenses, for the period ended December 31, 2021, rose 10% to close at $4.12 billion (2020: $3.73 billion). Of total expenses, selling and distribution expenses climbed 11% to total $3.39 billion (2020: $3.04 billion), while administrative expenses increased 6% to $735.24 million (2020: $690.66 million). WISYNCO noted, “Our SD&A expense to sales ratio was 22.1% for the quarter, compared to 22.8% in the prior year as management continues to exercise control over our costs.” Total expenses for the second quarter amounted to $2.10 billion (2020: $1.82 billion), up 16% year over year.

Other income for the six months fell by 9% to $71.42 million (2020: $78.11 million).

WISYNCO registered a 33% increase in operating profit to $2.53 billion (2020: $1.90 billion), while for the quarter, there was a 40% uptick resulting in an operating profit of $1.23 billion (2020: $875.92 million).

Finance income amounted to $361.02 million, up 317% from the $86.63 million reported in 2020. Finance costs fell 39% to $58.66 million, from $96.68 million in 2020. Moreover, the Company reported a loss of $7.58 million (2020: $22.88 million) for ‘Share of results of associates’.

Profit before taxation amounted to $2.83 billion, relative to $1.86 billion reported in 2020, a 52% increase year over year. Profit before tax for the quarter amounted to $1.54 billion (2020: 836.11 million). Taxation for the period amounted to $700.46 million (2020: $324.48 million).

Net profit for the six months period increased 38% to $2.13 billion relative to $1.54 billion posted in 2020, while for the quarter WISYNCO reported profit of $1.16 billion (2020: $688.43 million).

Net profit attributable to shareholders closed at $2.13 billion (2020: $1.54 billion), while for the quarter, net profit attributable to shareholders amounted to $1.16 billion (2020: $688.43 million).

Earnings per share (EPS) for the quarter amounted to $0.31 (2020: $0.18), while the EPS for the six months ended December 31, 2021 was $0.57 (2020: $0.41). The twelve months trailing EPS amounted to $0.98. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on February 3, 2022 at $17.66 with a corresponding P/E of 18.10 times.

Balance Sheet at a Glance:

As at December 31, 2021, WISYNCO’s assets totaled $23.95 billion, 14% more than the $21.03 billion recorded last year for the same period. The increase in total assets was largely due to an increase in ‘Investment Securities’ and ‘Receivables and Prepayments’ which closed at $667.32 million (2020: $142.45 million) and $3.43 billion (2020: $2.93 billion) respectively.

Shareholder’s equity closed at $17.20 billion (2020: $14.58 billion). As such, the book value per share was $4.59 (2020: $3.89).

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