June 25, 2025
Tropical Battery Company Limited (Tropical)
Unaudited financials for the six months ended March 31, 2025:
Tropical Battery Company Limited (Tropical) for the six months ended March 31, 2025 reported a 34% increase in Revenue totaling $3.17 billion compared to $2.36 billion in the corresponding period last year. Revenue for the second quarter had a 5% increase to close at $1.63 billion compared to $1.55 billion for the comparable quarter of 2024.
Year to date, Cost of sales amounted to $2.12 billion (2024: $1.62 billion), this represents an increase of 31% year over year. Consequently, gross profit increased by 42% to $1.04 billion compared to $735.63 million for the six months ended March 31, 2024. The company booked gross profit of $566.64 million for the second quarter versus $488.53 million reported for the similar quarter of 2024.
Administrative, marketing and selling expenses increased by 89% to close at $856.39 million (2024: $452.27 million), while Operating profit decreased by 11% from $206.30 million in 2024 to $184.60 million in the period under review. Notably, other operating income for the six months ended March 31, 2025, amounted to $5.36 million, a 50% decrease relative to $10.70 million reported in 2024.
Profit before depreciation, net finance costs and taxation for the six months ended March 31, 2025, amounted to $189.96 million, a 12% decrease relative to $217.00 million reported in 2024. Profit before depreciation, net finance costs and taxation for the second quarter amounted to $140.81 million (2024: $110.73 million). Depreciation totaled $66.64 million, a 78% increase from the corresponding period last year. (2024: $37.44 million).
Finance costs for the three months amounted to $266.36 million compared to $125.74 million reported in 2024. Finance income totaled $49.72 million versus $45.12 million in the prior period. As a result, Net finance costs for the six months ended March 31, 2025, amounted to $216.64 million, a 169% increase relative to $80.61 million reported in 2024. Net finance costs for the second quarter amounted to $106.18 million (2024: $63.59 million).
The tax charge incurred for the six months ended March 31, 2025, had a 14% decrease to reach $141, 352 (2024: $124, 278). Net loss for the six months amounted to $93.46 million, a 195% decrease from the net profit of $98.82 million reported in 2024. For the second quarter, Net income was $2.78 million (2024: $26.58 million).
Net loss attributable to shareholders amounted to $86.87 million (2024: net profit attributable to shareholders of $86.63 million).
Consequently, Loss Per Share for the six months amounted to $0.06 (2024: EPS: $0.07), while Earnings Per Share for the quarter totaled $0.001 (2024: EPS: $0.02). The twelve-month trailing LPS was $0.14 and the number of shares used in these calculations was 1,369,377,273.
Notably, Tropical’s stock price closed the trading period on June 24, 2025, at a price of $2.14.
Balance Sheet Highlights
The company’s assets totaled $7.76 billion (2024: $6.88 billion). The movement in total assets was attributable to $424.60 million increase in ‘Goodwill’ to $2.90 billion (2024: $2.47 billion), a $1.04 billion increase in ‘Plant, Property and Equipment’ to $1.25 billion (2024: $206.49 million), an 11% increase in ‘Inventories’ to $1.64 billion (2024: $1.48 billion). Conversely, ‘Cash and cash equivalents’ decreased by $208.11 million to $220.86 million (2024: $428.97 million).
Shareholder’s equity was $914.58 million (2024: $1.14 billion), representing a book value per share of $0.67 (2024: $0.83).
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