Durrant Pate/Contributor

Wisynco Group has set a new revenue record for the September quarter, concluding a productive first quarter with several milestones achieved during the period.

Revenues for the quarter totalled $16.2 billion, representing an increase of 10.5% above the $14.6 billion achieved in the corresponding quarter of 2024, reflecting a new record in quarterly revenues. Wisynco was able to meet customer demands as a result of the increased utilisation of recently installed production capacity and the introduction of new product lines for distribution, effective July 1. Both these initiatives contributed to the upward movement in revenues. 

In addition, Wisynco experienced good demand from its export markets with additional focus on this segment, witnessing robust growth moving forward. Gross profits amounted to $5.6 billion, which is 6% greater than the $5.3 billion in the prior year, whereas gross margin closed on 34.8%, which is 150 basis points lower than the 36.3% recorded in 2024. Additional depreciation charge from newly commissioned plant and equipment continues to exert downward pressure, which is expected to ease as the sale of new brands and products commences.

Shareholders’ profit was flat

While the financial performance was good, shareholders’ profit was flat as net profits attributable to shareholders closed on $1.5 billion, which is the same amount recorded for the comparable quarter of 2024, with Earnings per Share of 39 cents, compared to 40 cents in the prior year. Pre-tax profit for the quarter closed on $1.8 billion or 1.9% lower than the $1.9 billion for the comparative quarter of the prior year. 

This reflects the second successive quarter of growth in Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA), attaining $2.4 billion or an increase of 6.3% over 2024, representing the best quarterly EBITDA performance in some time. 

Selling, Distribution & Administrative expenses (SD&A) for the quarter totalled $3.9 billion or 6.7% more than the $3.6 billion for the corresponding quarter of the prior year. 

SD&A expense to sales ratio was 23.9% for the quarter, compared to 24.8% in the prior year, an improvement of 90 basis points. This is the fourth consecutive quarter that SD&A growth has decelerated, and the first time in recent history that topline revenue has outpaced SD&A growth in the same quarter. 

The company’s balance sheet remains strong with a current ratio of 2.2, which improved over the 1.8 for the comparable quarter last year and cash and investment instruments, which stand at $12 billion at the end of the quarter, continue their positive trend. 

New production line successfully launched

Wisynco has commenced production in its new brewery line and has successfully launched the following new and innovative products: Legend Lager, Legend Dark Lager, Legend Flavours, and MPowa Malt. Wisynco reports that these products have started going out to market and have all received positive feedback. During the quarter, the company completed two strategic investments that have been seamlessly integrated into the Company’s portfolio: 

a) The acquisition of a 30% equity interest in Ringtail Holdings Limited (RHL), the parent company of Select Brands Limited. 

b) The acquisition of the business and production assets of Ringtail Bottlers Limited (RBL), as well as the exclusive right to manufacture Stone’s Ginger Wine and a small portfolio of liqueurs for the Jamaican, Caribbean, and US markets. 

Following the completion of these transactions, Wisynco has successfully commissioned a new production plant to facilitate the manufacturing of Stone’s Ginger Wine and other products within the acquired portfolio. The commissioning marks a significant milestone in Wisynco’s continued diversification into new beverage categories and enhances its capacity to serve both domestic and export markets.