Profits go down at Tropical Battery

Business

Profits go down at Tropical Battery

BY DURRANT PATE
Observer Business Writer

Sunday, January 24, 2021

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Tropical Battery ended its 2020 financial year last September with profits plummeting by 53 per cent on top of revenues growing by seven per cent.

The company posted net profit of $29.34 million for the year under review compared to $62.90 million in 2019, reflecting a plummeting of 53 per cent. Net loss for the fourth quarter totalled $16.47 million, relative to the net profit of $13.04 million reported in the corresponding period for 2019.

For the fourth quarter, Tropical Battery, which became a public company last year following its successful initial public offering of shares during the quarter, reported a loss before tax of $1.55 million, relative to a profit of $18.96 million made in the fourth quarter of 2019.

Pre-tax profits closed the year at $60.58 million, a 30 per cent decline relative to the $86.58 million booked in 2019. Total comprehensive income for the year amounted to $31.66 million, down from the $50.66 million reported in 2019.

REVENUES SLIGHTLY UP IN 2020

Revenues for the year climbed to $1.87 billion coming from $1.74 billion in 2019. Revenues for the fourth quarter inched up by three per cent, moving from $492.57 million in 2019 to $505.36 million for the period under review.

Taxes of $31.24 million were reported for 2020 compared to a tax charge of $23.69 million in 2019. Administrative, marketing and selling expenses rose by 10 per cent to close the year at $440.14 million versus $400.89 million reported in 2019.

Operating profit for the period totalled $122.41 million compared with $114.27 million in 2019. The operating profit for the quarter dipped by 14 per cent to end 2020 at $30.89 million compared to the 2019 out-turn of $35.86 million.

Other operating income for the year amounted to $13.72 million, which represents a 51 per cent increase relative to the $9.09 million booked the previous year. Impairment loss on trade receivables closed at $6.36 million versus an income of $1.14 million booked twelve months earlier.

Cost of operating revenue amounted to $1.30 billion, which is a six per cent increase in comparison to the $1.23 billion booked in the previous year.

SKYROCKETING FINANCE COSTS

Finance costs year-over-year skyrocketed by 133 per cent to $45.02 million as against the $19.29 million recorded in 2019. In addition, depreciation closed at $33.35 million compared with $23.87 million reported in 2019.

Finance income for the period totalled $2.82 million relative to $6.38 million in 2019, a 56 per cent decrease year on year. For the quarter, finance loss amounted to $7.14 million relative to a loss of $2.80 million in 2019.

As at September 30, 2020, total assets amounted to $1.45 billion, compared to its value of $1.35 billion a year ago, which represents an 8 per cent increase year on year. This increase was attributed to an 83 per cent increase in cash and cash equivalent, which amounted to $262.50 million and a 131 per cent increase in property, plant & equipment which totalled $161.91 million

In its management analysis on the 2020 performance, the management team reported that, “the work from home and social distancing procedures implemented to slow the spread of COVID-19 could have had a more severe impact on Tropical Battery's distribution. However, due to recent innovations and upgrades to our distribution strategy in recent years, the company was able to minimise the effect of less consumer traffic.”


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