Wisynco Group Limited has achieved its highest quarterly revenue in its history after growing its top line 30 per cent to $11.95 billion for the period ending September 30.

The manufacturing and distribution outfit stated that there was increased demand across all of its channels which include key areas such as tourism/hospitality, restaurants and the entertainment industry. It also noted that increased demand for its exports which was up 10 per cent when compared to the prior quarter.

Although the company’s cost of sales increased year over year, its gross profit was up 32 per cent to $4.33 billion with the gross profit margin increasing from 35.6 per cent to 36.2 per cent. Despite continued supply chain challenges, Wisynco noted that it saw some improvements and expects its inventory balance to normalise going into the second and third quarters as there is less congestion at global ports and improved freight rates.

Wisynco’s inventory balance declined for the sequential quarter from $5.42 billion to $5.24 billion but is almost double the $2.93 billion for the 2021 quarter. This is due to the company holding higher volumes of key materials.

Despite selling, distribution and administrative expenses (SD&A) rising 26 per cent to $2.6 billion due to inflationary increases, the growth in expenses is slower than the growth rate of revenues as evidenced by the SD&A to sales ratio declining from 22 per cent to 21.6 per cent. While the prior period saw a $1.63 million share of profit of associate, the current quarter saw a $11.36 million loss for the share of loss. With Wisynco owning 30 per cent of JP Snacks Caribbean Limited, the associate would have produced a loss of $37.86 million for the first quarter. Wisynco’s profit before tax was up 35 per cent to $1.73 billion with net profit rising 34 per cent to $1.30 billion. Earnings per share rose from $0.26 to $0.35.

With a cash and short-term deposit balance of $7.72 billion, Wisynco is currently executing its US$20 million and $30 million ($3.15 billion – $4.73 billion) expansion plan. The company will be adding two new production lines which includes the beverage expansion and the energy plant to contain its utility costs. Wisynco spent $604.96 million (US$4.01 million) recently on new equipment and $349.08 million (US$2.28 million) in the first quarter on property, plant and equipment.

Wisynco’s total assets grew 17 per cent year over year to $26.19 billion with non-current assets at $8.94 billion and current assets at $17.25 billion. Total liabilities and shareholders equity closed the period at $7.07 billion and $19.12 billion, respectively. Wisynco’s stock price traded up four per cent to $18.45 on the earnings release with volumes of 1.25 million shares valued at $22.97 million. This leaves the stock up ten per cent year-to-date with a market capitalisation of $69.29 billion. Its trailing 12-month earnings per share of $1.17 leaves it with a price to earnings ratio of 15.77 times.