November 1, 2019
Wisynco Group Limited (WISYNCO) reported total revenue of $9.09 billion for the first quarter ended September 30, 2019, a 35% or $2.33 billion increase when compared with the $6.75 billion reported for the same period in 2018. Management noted, “We had very strong growth in our core beverage brands as a result of increased demand and improved efficiencies in plant productivity. In addition, the strategic alliances between Worthy Park (WP) and St Mary’s Snacks along with increasing revenue from other portfolios contributed to drive revenue to new highs.”
Cost of sales for the period amounted to $5.74 billion, up 37% relative to $4.18 billion reported in last year. Consequently, gross profit rose 30% to close at $3.35 billion compared to the $2.58 billion for the same period a year earlier.
In addition, Other Income increased 12% to close the period at $24.57 million versus $21.99 million in 2018.
Total expenses for the three months rose 18% to close at $2.04 billion (2018: $1.73 billion). Of total expenses, selling and distribution expenses climbed 16% to total $1.71 billion (2018: $1.47 billion), while administrative expenses increased 29% to $333.60 million (2018: $259.17 million). Furthermore, Wisynco highlighted, “the leveraging of our distribution system with the new portfolios, while driving revenue growth favorably impacted our expense to sales ratio which reduced to 22.5% of sales from the 25.6% Q1 2019. The 22.5% expense to sales ratio is the lowest we have seen in some time and we must congratulate our team for this effort.”
As such, WISYNCO booked a 53% increase in operating profit to $1.33 billion when compared to $868.69 million in the previous corresponding period.
Finance income for the period amounted to $116.59 million, up 9% from the $107.23 million reported for the corresponding period in 2018, while finance costs decreased 17% to $39.85 million for the period from $47.85 million for 2018.
Profit before taxation amounted to $1.42 billion, relative to $928.07 million reported in 2018, a 53% uptick year over year. Taxation for the period amounted to $242 million (2018: $159.41 million). Profit after taxation amounted to $1.18 billion in the first quarter ended September 30, 2019 relative to $768.66 million. Wisynco also noted, “the improvement in Gross margins coupled with the reduced expense to sales ratio saw a widening of our Net profit after tax margin to 12.9% or 1.5% greater than the 11.4% from the first quarter of 2019.”
Net profit attributable to shareholders of $1.18 billion (2018: $768.66 million) was posted for the first quarter, representing a 53% increase year over year.
Earnings per share (EPS) for the quarter amounted to $0.31 (2018: $0.20), while the EPS for the twelve-month trailing EPS amounted to $0.89. The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on October 31, 2019 at $22.25.
Balance Sheet at a Glance:
As September 30, 2019, WISYNCO’s assets totalled $19.43 billion, $3.17 billion 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 $1.12 billion to close at $5 billion (2018: $3.87 billion). ‘Receivables and prepayments’ also increased 35% to $3.54 billion (2018: $2.63 million)
Shareholder’s equity closed at $11.91 billion (2018: $9.19 billion). As such, the book value per share was $3.18 (2018: $2.45).
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