Wisynco reports 6% decline in year-end net profits

Date: August 14, 2018

Wisynco Group Limited for the year ended June 30, 2018 reported total revenue of $24.54 billion, a 15% increase when compared with the $21.38 billion reported for the same period in 2017. Total revenues for the quarter amounted to $6.49 billion also reflecting an increase of 15% over the $5.63 billion achieved in the corresponding quarter of the previous year.

Cost of sales for the year amounted to $15.42 billion, up 13% relative to $13.71 billion reported in 2017. Consequently, gross profit rose 19% to close the year at $9.12 billion compared to the $7.68 billion a year earlier. Gross profit for the quarter amounted to $2.39 billion, an 18% increase on the $2.02 billion booked in 2017.

Total expenses for the year ended rose 9% to close at $6.37 billion (2017: $5.87 billion). Of total expenses, selling and distribution expenses climbed 9% to total $5.41 billion (2017: $4.98 billion), while administrative expenses increased 7% to $956.68 million (2017: $891.68 million). Total expenses for the fourth quarter rose 3% to $1.86 billion (2017: $1.79 billion). Other income for the year end contracted 88% to $92.16 million (2017: $743.54 million).

As such, WISYNCO booked a 12% increase in operating profit to $2.85 billion (2017: $2.55 billion).

Finance income for the year amounted to $130.84 million, down 18% from the $159.97 million reported for the corresponding period in 2017. Finance costs increased 25% to $211.41 million for the period from $169.75 million for 2017.

Profit before taxation amounted to $2.77 billion, relative to $2.54 billion reported in 2017, a 9% increase year over year. Taxation for the period amounted to $513.83 million (2017: $286.31 million). Profit from discontinued operations totalled $41.55 million versus $190.84 million in 2017. As such, net profit of $2.29 billion (2017: $2.45 billion) was posted for the year ended June 30, 2018, representing a 6% decline year over year. Net profit for the fourth quarter amounted to $565.61 million relative to $488.78 million in 2017, a 16% increase year over year.

Earnings per share (EPS) for the year end amounted to $0.61 (2017: $0.65), while the EPS for the quarter amounted to $0.15 (2017: $0.13). The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on August 13, 2018, at $9.29.

The Company noted, “The fourth quarter was consistent with the upturn in the Jamaican economy where we saw good demand for all product ranges. Our investments in property, plant and equipment over this past financial year amounted to approximately JMD$2.6 billion, of which JMD$1.5 billion represented the largest capital investment in production equipment made by Wisynco since our inception. We are now confident in our ability to supply and meet the growing demand for our beverages both locally and in the export markets, including planned new product development.”

Balance Sheet at a Glance:

As June 30, 2018, WISYNCO’s assets totalled $15.66 billion, $1.96 billion more than the $13.69 billion recorded last year for the same period.  The increase in total assets was largely due to increases in ‘property, plant and equipment’ by $1.51 billion to close at $6.69 billion (2017: $5.17 billion).

Shareholder’s equity closed at $8.69 billion (2017: $7.55 billion).  As such, the book value per share was $2.32 (2017: $2.01).


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