Manufacturing and distribution giant Wisynco attained record revenues of J$12.7 billion for the June fourth quarter amid strong demand for all its products.

This represents a 19 per cent revenue growth year-over-year. For the 2023 financial year, revenues closed on J$48.7 billion, up 24.7 per cent and greater than the $39.0 billion recorded for 2022.

Wisynco says it is currently “seeing very strong demand in all channels, however, during the quarter we experienced some production challenges that prevented us from achieving a higher level of sales and impacted our production cost.”

Pre-tax profit for 2023 of J$6.3 billion is 26.4 per cent greater than the prior year’s J$4.9 billion.

Net profit closed the year on J$4.9 billion, compared to $4.1 billion in 2022. Wisynco’s net profit margin of 10.1 per cent for 2023 was slightly lower than the 10.4 per cent realised for 2022.

Earnings per share for the year was J$1.31 per share, or 21.3 per cent greater than the J$1.08 per share for the prior year. The annual gross profit of J$16.9 billion was J$3.6 billion or 27.2 per cent greater than the prior year.

Gross profit margin up

In spite of the production challenges, gross profit margins improved to 34.6 per cent compared to 33.9 per cent for 2022. Selling, distribution and administrative expenses for the year of J$10.9 billion were 28 per cent greater than the J$8.5 billion of the prior year.

The increase resulted from expanded business activity and the corresponding increase in variable costs, as well as inflationary increases across all expense categories. Expense to sales ratio for the year was 22.4 per cent compared to 21.8 per cent for the prior year.

Interest income improved over the prior year by approximately J$144 million, due to higher rates being earned and the significant increase in cash and short-term deposits.

Impairment charge levied

The carrying value of investment in associate was assessed as being below the recoverable amount, resulting in an impairment being charged to the Consolidated Statement of Comprehensive Income for the year of J$105 million. A dividend of 23 cents per share was declared on June 28, 2023, which, along with the dividend of 22 cents per share declared on February 1, 2023, brings the dividend for fiscal 2023 to 45 cent per share, or 12.5 per cent greater than the 40 cents per share for 2022.

The increased inventories are a result of carrying more inventory to meet the increased business activity however, importantly, the inventory represented only 70 days of sales at the end of 2023 compared to 77 days in 2022. Wisynco’s expansion is well underway and it is expected that the results of the first phase will reflect in increased efficiencies and revenues during the second quarter of this current 2024 fiscal year.

Optimistic outlook

Wisynco management says it is entering the 2024 fiscal year with “a very optimistic outlook and looks forward to continue expanding the company and improving the lives of our people in Jamaica. The growth rates of our economy, the drop in unemployment, the thriving tourism sector and brand Jamaica all augur well for the future of our company and our country”.