WisyncoGroup Limited for the nine months ended March 31, 2020, reported total revenue of $25.19 billion a 28% increase when compared with the $19.75 billion reported for the same period in 2019. Total revenues for the quarter amounted to $8.08 billion reflecting an increase of 24% over the $6.54 billion achieved in the corresponding quarter of the previous year. Management noted, “While March began with a positive performance the latter part of the month was impacted by the discovery of Jamaica’s first COVID case on March 10. This was followed closely by travel bans, closure of airports, schools, the Tourism industry, sporting events, bars, and all entertainment activity which in turn caused Revenue in March to under perform expectations.”
Cost of sales for the nine months ended March 31, 2020 amounted to $16.41 billion, up 36% relative to $12.03 billion reported in 2019. Consequently, gross profit rose 14% to close at $8.78 billion compared to the $7.72 billion for the same period a year earlier. The Company noted, “Approximately half of the additional expenditure was a result of the increased revenues. Management however believes there are opportunities for better expense management and has been implementing measures to drive downward all non-essential expenditures.” Whereas, gross profit for the quarter amounted to $2.59 billion (2019: $2.52 billion).
Total expenses, for the nine months ended March 31, 2020, rose 21% to close at $6.31 billion (2019: $5.20 billion). Of total expenses, selling and distribution expenses climbed 20% to total $5.26 billion (2019: $4.40 billion), while administrative expenses increased 30% to $1.04 billion (2019: $799.94 million). Total expenses for the third quarter rose 20% to $2.07 billion (2019: $1.72 billion).
Other income for the nine months increased 12% to $95.74 million (2019: $85.39 million). As such, WISYNCO booked a 1% marginal decrease in operating profit to $2.57 billion (2019: $2.60 billion). Whereas, for the quarter ended March 31, 2020, operating profit amounted to $549.40 million (2019: $824.88 million), a 33% decrease.
Finance income nine months ended March 31, 2020 amounted to $212.24 million, up 235% or $148.86 million from the $63.38 million reported for the corresponding period in 2019. Finance costs decreased 61% to $118.97 million for the period from $301.79 million for 2019. The Company noted, “Included in Finance Income are foreign exchange gains of approximately $99.5 million as a result of the devaluation of the JAD at the end of the quarter.” Moreover, the Company reported ‘Share of results of associate’ of $6.01 million for the nine months ended March 31, 2020 (2018: nil).
Profit before taxation amounted to $2.67 billion, relative to $2.36 billion reported in 2019, a 13% increase year over year. Taxation for the period amounted to $492.74 million (2019: $422.98 million). Profit from continuing operation amounted to $2.17 billion relative to $1.94 billion booked for the comparable period in 2019. The Company booked a 45% decrease in profit from discontinued operations from $299.94 million to $165.38 million for the nine months ended March 31, 2020. according to WISYNCO, “On 31 December 2019, the Company ceased operations of the manufacturing of foam products due to the January 1, 2020 ban on Styrofoam products by the government.
As such, net profit increased 4% to $2.34 billion relative to $2.24 billion that was posted for the nine months ended March 31, 2019. Net profit for the third quarter amounted to $580.30 million relative to $693.92 million in 2019, a 16% decrease year over year. Notably, total comprehensive income for the nine months ended March 31, 2020 amounted to $2.41 billion (2019: $2.25 billion). Whereas, total comprehensive income for the third quarter ended March 31, 2020 amounted to $603.39 million (2019: $691.66 million). Net profit attributable to shareholders for the nine months totalled $2.34 billion (2019: $2.24 billion) while for the quarter net profit attributable to shareholders amounted to $580.30 million (2019: $693.92 million).
Earnings per share (EPS) for the quarter amounted to $0.15 (2019: $0.19), while the EPS for the nine months amounted to $0.62 (2019: $0.60). The twelve-month trailing EPS amounted to $0.81. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on May 08, 2020 at $17.52.
Management noted, “CoGen which was to start up this quarter was delayed primarily due to COVID and the interruption of travel globally. Our engineering team is working with the suppliers to commission the engine so we can start seeing the positives from the investment.”
Balance Sheet at a Glance:
As March 31, 2020, WISYNCO’s assets totalled $19.38 billion, 19% more than the $16.25 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 35% or $1.12 billion to close at $4.35 billion (2019: $3.24 billion).
Shareholder’s equity closed at $12.79 billion (2019: $10.39 billion). As such, the book value per share was $3.41 (2019: $2.77).
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
