Tropical Battery went unscathed by the COVID-19 containment measures imposed by the Government, so much so that the company experienced a stellar 2021 financial performance.

At the end of its 2021 financial year on September 30, Tropical Battery saw its net profit grow by 201 per cent to $88.33 million, compared to $29.34 million in 2020. Net profit for the September quarter alone amounted to $28.94 million, relative to the net profit of $5.37 million reported in the corresponding period for 2020.

The management reports that the company, which is listed on the Junior Market of the Jamaica Stock Exchange, was able to withstand the adverse effects of the COVID-19 containment measures. This resulted from systems put in place by the management to counter whatever adverse effects that came with the containment measures.

Counter negative containment effects

Company directors advised, “The work from home and social distancing procedures implemented to slow the spread of COVID-19 did not have a severe impact on the company’s distribution system. This was due to innovations and upgrades to the distribution strategy in recent years which enabled the company to minimise the effect of less consumer traffic.”

Total comprehensive income in the review year went up threefold to $103.83 million compared with $31.66 million in 2020. Profit before tax closed at $87.52 million for 2021, a 44 per cent increase relative to the $60.58 million booked last year.

Tropical Battery reported a profit before tax of $28.13 million for the fourth quarter, relative to $9.64 million in 2020. A tax credit of $808,044 was reported compared to a tax charge of $31.24 million in 2020.

Tropical Battery recorded $2 billion in revenues in its last financial year. This was up seven per cent compared to the 2020 out-turn of $1.87 billion. In the September fourth quarter, revenue increased by nine per cent, moving from $505.36 million in 2020 to $548.68 million for the period under review.

Administrative, marketing and selling expenses rose marginally by 1per cent to close at $443 million versus $440.14 million reported in 2020. Impairment loss on trade receivables closed at $6.28 million versus a loss of $6.36 million booked 12 months earlier.

Finance costs increased by 40 per cent to $62.98 million, coming from $45.02 million in 2020. In addition, depreciation went up to $52.12 million from the $33.35 million recorded in 2020.

Finance income for the period amounted to $9.89 million relative to $2.82 million reported in 2020, a 250 per cent increase year on year. For the September quarter, finance income amounted to $4.39 million relative to a loss of $5.84 million in 2020.

As of September 30, 2021, total assets amounted to $1.74 billion, compared to its value of $1.45 billion a year ago, a 20 per cent increase year on year. This increase was attributed to a 103 per cent increase in ‘Inventories”, which amounted to $608.59 million and a 17 per cent increase in ‘Accounts Receivable’, totalling $351.24 million.