Durrant Pate/Contributor

Tropical Battery has come out of the red, delivering a solid start to its 2026 financial year in chalking up a net profit of J$51.7 million for the first quarter, ended December 31, 2025. 

This reverses the restated net loss of J$102.9 million recorded one year ago. Revenue growth for the review period was moderate, increasing by 6.2% to J$1.63 billion, supported by disciplined pricing and steady demand across core markets and subsidiaries involved in battery distribution, renewable energy solutions, and international operations.

Earnings quality strengthened due to margin expansion and tighter expense control. Liquidity improved, supporting operational stability and future growth initiatives.

Gross profit rose 39.5% to $661.9 million with gross margin expanding to 40.6% from 30.9%, primarily due to an 8.6% reduction in cost of goods sold. Operating profit went up to $167.7 million, which was driven primarily by stronger operating results and the recognition of a non-recurring gain of approximately J$46.3 million arising from the contractual reversal of a contingent acquisition earn-out liability. 

Earnings Before Interest, Taxes, and Amortisation (EBITA), which is a financial metric used to evaluate a company’s operational profitability, rose to $221.7 million, reflecting improved cost structure and operating leverage.

Progress in containing cost and improving working capital 

Operating cash flow amounted to $347.5 million, increasing cash balances to J$302.2 million at the end of the review quarter. Total comprehensive income closed on $91.3 million with shareholders’ profit improving to $58.5 million, reflecting earnings per share of $0.03. 

These results reflect continued progress in cost-optimisation, working capital discipline, and post-acquisition integration. The management is reporting that the quarter demonstrated meaningful year-over-year improvement in profitability and cash generation.  

Net finance costs totalled J$114.9 million, reflecting the Group’s leveraged structure. Taxation closed on J$9.7 million, consistent with its migration to the main market taxation norms. Currency translation gains contributed $91.3 million to total comprehensive income.