February 28, 2025
Tropical Battery Company Limited (Tropical)
Unaudited financials for the first quarter ended December 31, 2024:
Tropical Battery Company Limited (Tropical) for the first quarter ended December 31, 2024 reported a 100% increase in revenue totalling $1.61 billion compared to $809.13 million in the corresponding three months last year.
Year to date, Cost of sales amounted to $1.07 billion (2023: $562.03 million), this represents an increase of 91% year over year. Consequently, gross profit increased by 120% to $543.36 million compared to $247.10 million for the first quarter ended December 31, 2023.
Administrative, marketing and selling expenses increased by 150% to close at $368.08 million (2023: $147.41 million), while Operating profit increased by 76% from $99.69 million in 2023 to $175.28 million for the three months. Notably, Other operating income for the first quarter amounted to $507, 742, a 92% decrease relative to $6.57 million reported in 2023.
Profit before depreciation, net finance costs and taxation for the three months amounted to $175.79 million, a 65% increase relative to $106.27 million reported in 2023. Depreciation totaled $26.32 million, a 55% increase from the corresponding period last year. (2023: $17.00 million).
Finance costs for the three months amounted to $152.29 million compared to $23.90 million reported in 2023. Finance income totaled $38.34 million versus $6.88 million in the prior period. As a result, Net finance costs for the first quarter ended December 31, 2024, amounted to $113.96 million, a 570% increase relative to $17.02 million reported in 2023.
No tax charge was incurred in the period (2023: Nil) . Net income for the three months amounted to $35.50 million, a 51% decrease from the $72.24 million reported in 2023.
Net profit attributable to shareholders amounted to $24.72 (2023: net profit attributable to shareholders of $64.22 million)
Consequently, Earnings Per Share for the three months amounted to $0.02 (2023: EPS: $0.05). The twelve-month trailing LPS was $0.04 and the number of shares used in these calculations was 1,369,377,273. Notably, Tropical’s stock price closed the trading period on February 27, 2025 at a price of $2.80.
Balance Sheet Highlights
The company’s assets totaled $7.92 billion (2023: $2.55 billion). The movement in total assets was attributable to $2.85 billion increase in ‘Goodwill’ to $2.90 billion (2023: $45.12 million), a $1.06 billion increase in ‘Plant, Property and Equipment’ to $1.25 billion (2023: $197.28 million), an 85% increase in ‘Inventories’ to $1.70 billion (2023: $916.59 million) and a 157% increase in ‘Accounts receivables’ to $1.14 billion (2023: $443.72 million). Conversely, ‘Cash and cash equivalents’ decreased by $51.94 million to $256.63.67 million (2023: $308.56 million).
Shareholders’ equity was $1.06 billion (2023: $1.13 billion), representing a book value per share of $0.78 (2023: $0.82).
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