No impairment loss on trade receivables reported in 2022

Durrant Pate/Contributor

Tropical Battery has seen its net profit more than double in 2022, ending the year at J$197.01 million compared to J$88.33 million in 2021, representing a 123 per cent increase.

Net profit for the September fourth quarter totalled J$52.77 million, relative to J$28.94 million for 2021. Profit before tax closed the year ended September 30, 2022 at J$197.48 million, a 126 per cent increase compared to the J$87.52 million booked last year.

For the quarter, Tropical Battery reported a profit before tax of $52.43 million, relative to a profit of $28.13 million in 2021. The company incurred a tax charge of J$462,155 for the quarter compared to a tax credit of J$808,044 in 2021.

Total comprehensive income for the year amounted to J$207.94 million, up from J$103.83 million in 2021. Revenues for the year amounted J$2.63 billion, up from an even J$2 billion last year, which is a 31 per cent increase year-over-year.

Revenues for the last quarter increased by 21 per cent, moving from J$548.68 million in 2021 to J$666.45 million for the period under review. Cost of operating revenue totaled J$1.85 billion, which represents a 34 per cent increase in comparison to the J$1.38 billion booked in the previous year.

Moderate increase in expenses

Administrative, marketing and selling expenses rose by 15 per cent to close the year at J$511.90 million versus J$444 million reported in 2021. Other operating income for the year amounted to J$12.83 million, which represents a 46 per cent decline relative to J$23.58 million booked in 2021.

Impairment loss on trade receivables closed at nil versus a loss of J$6.28 million booked twelve months earlier. Finance costs increase year over year by 13 per cent to a total of J$71.36 million (2021: J$62.98 million).

In addition, depreciation closed at J$53.71 million (2021: J$52.12 million). Finance income for the year amounted to J$45.56 million relative to J$9.89 million in 2021, a whopping 361 per cent increase year on year.

For the final quarter, finance income amounted to J$25.04 million, up from J$4.39 million in 2021. Earnings per share (EPS) for the year amounted to J$0.15 versus an EPS of J$0.07 for 2021.

As at September 30, 2022, total assets amounted to J$2.04 billion, compared to its value of J$1.74 billion a year ago, a 17 per cent increase year on year. This increase was attributed to a 57 per cent increase in ‘Due from related companies’ which amounted to J$247.84 million (2021: J$157.40 million) and a 31 per cent increase in ‘Inventories’ which totalled J$608.59 million (2021: J$795.13 million).

Shareholder’s Equity as at September 30, 2022 totalled J$1.01 billion (2021: J$825.87 million) resulting in a book value per share of J$0.78 (2021: J$0.64). Tropical Battery has declared an ordinary dividend of J$0.04 per share.

Payment will be made on January 30, 2023, to all shareholders on record as at January 17, 2023. The ex-dividend date is January 16, 2023.