Strong growth in revenues during June fourth quarter

Distribution company Wisynco Group has experienced recovery in all its business channels for the financial year ended June 30, 2021, but revenues for the year were still flat.

Revenues from continuing operations for 2021 amounted to $31.8 billion or 1.1 per cent less than the $32.2 billion in 2020. However, revenues for the June fourth quarter jumped by 17.1 per cent over the same period in 2020.

This was almost the same revenues Wisynco achieved, as in its 2020 financial year, which the company described as a very challenging year due to the impact of the COVID-19 pandemic on the local economy. In addition to experiencing a good recovery in all channels during the final quarter, Wisynco continues its drive in the export markets, which realised a 37 per cent revenue growth over fiscal year 2020.

Gross profit for the financial year in review was $11.1 billion or essentially the same as in the prior year. At the same time gross margin was 34.9 per cent compared to 34.4 per cent for fiscal year 2020.

Selling, distribution and administrative expenses for the year under review amounted to $7.6 billion, which represented a seven per cent decline over the $8.2 billion posted in 2020.

Containing expenses in 2021

Wisynco’s management has continued to ensure the containment of expenses during the 2021 financial year. The company’s expense to sales ratio for the year improved from 25.3 per cent last year to 23.7 per cent this year.

Included in its 2021 finance income were foreign exchange gains for the year of approximately $77 million, representing 60 per cent decline from the $182 million made in the prior year, as there was less devaluation of the Jamaican dollar year-over-year. Interest income improved over the prior year by approximately $56 million.

Profit before taxation from continuing operations for the year was $3.8 billion or 18.1 per cent greater than the prior year’s $3.2 billion. Net profit after taxes for the year from continuing operations was $3.1 billion compared to $2.7 billion of the prior year.

The distribution group’s net profit margin for 2021 was 9.7 per cent, which was greater than the 8.3 per cent realised for 2020 and reflected and improvement of 140 basis points over the prior year. Earning per share for the year from continuing operations was $0.82 per share or 15.4 per cent greater than the$0. 71 for the last year.

Dividend declaration

A dividend of $0.20 per share was declared on June 26, 2021 and has been accrued in the June 30, 2021 audited financial statements. This dividend along with the dividend of $0.10 per share, declared on January 28, 2021, brings the total dividend for 2021 to $0.30 per share or a dividend yield of 1.9 per cent.

This calculation is based on the closing stock price at June 30, 2021. The current ratio at 2.4 is in line with the company’s prior year performance with the management saying it is “continuing to look for efficiency improvements as well as expansion opportunities. The return on average equity of 22 per cent was also in line with the 22 per cent of fiscal 2020“.

Wisynco has congratulated its team members, who with steadfast commitment, passionately delivered a solid performance for fiscal year 2021 and did so under very difficult business conditions. In addition, the company said it did its best to serve its customers and continued to find innovative ways and products to serve them better, while at the same time providing better returns for shareholders.