Durrant Pate/Contributor

Tropical Battery has returned to profitable ways, closing the first quarter of its 2026 financial year with net profit of J$52 million, reversing the J$103 million restated losses incurred a year ago.

For the quarter ended December 2025, Tropical Battery delivered a solid start supported by margin recovery and improved cost discipline with J$58.5 million profit attributable to shareholders. Operating profit increased to J$167.7 million or 326.7 per cent. 

Earnings before interest, taxes and amortisation (EBITA), increased to J$221.7 million or 422.2 per cent after depreciation of J$45.1 million. This improvement 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.

Marginal improvement in revenues

Revenues went up 6.2 per cent to J$1.63 billion, reflecting stable demand across battery distribution, renewable energy solutions, and international operations. This was supported by disciplined pricing and steady demand across core markets and subsidiaries.

Operating expenses rose 13.6 per cent to J$494.2 million, thus supporting sales growth, one-off hurricane Melissa expenses and integration activities. 

Net finance costs totalled J$114.9 million, reflecting the group’s leveraged structure. Operating cash flow totalled J$347.5 million, increasing cash balances to J$302.2 million at quarter end. Total comprehensive income was J$91.3 million. The results reflect continued progress in cost optimisation, working capital discipline, and post-acquisition integration. 

Financial position analysis 

Liquidity improved, supporting operational stability and future growth initiatives. Total assets increased to J$7.99 billion at December 31, 2025, compared to J$8.39 billion at September 30, 2025. The movement reflects improved liquidity and stabilised working capital. 

Current assets totalled J$3.18 billion while cash increased to J$302 million, driven by strong operating cash flow. Accounts receivable declined relative to the prior quarter, reflecting improved collections. Inventory levels were reduced as part of working capital optimisation initiatives. 

Current liabilities declined due to repayment of short-term borrowings and supplier settlements. As a result, net current assets improved to J$424 million, compared to a deficit of J$168 million in the prior year period. 

Non-current assets remained stable, consisting primarily of property, plant and equipment, right-of-use assets, goodwill, and intangible assets. Capital expenditure during the quarter was directed toward operational upgrades and hurricane restoration. 

Shareholders’ equity strengthened to J$1.69 billion, reflecting improved profitability and foreign currency translation adjustments. The balance sheet at quarter-end reflects improved short-term liquidity, reduced refinancing pressure, and gradual deleveraging, funded by internal cash flow.