Wisynco Group Limited recorded its highest-ever quarterly revenue out-turn of $12.13 billion as demand continues to increase across all channels despite facing production challenges in its second quarter.

The manufacturing and distribution company’s record revenue performance was below its production forecasts and sales targets for its local and export markets with the latter seeing an eight per cent year-on-year increase. Wisynco had achieved its highest-ever quarterly revenue performance in its first quarter (July to September) with $11.95 billion. This also represents Wisynco’s third-consecutive quarter earning above $10 billion in revenue.

Wisynco is facing production challenges at a time when it is embarking on its largest-ever capital expenditure investment of $5 billion to be executed in 2023. The company spent $954.04 million in the past year for new equipment and spent $940.99 million in the first six months of its 2024 financial year (FY).

The company is planning to acquire a new high-speed labeller, two new palletisers, and a new in-line pallet stretch wrapper at its White Marl location, which is set to be commissioned during this quarter. Wisynco is also planning to add two new sophisticated production lines, expand its energy generation plant, add new buildings for manufacturing and a new ERP (enterprise resource planning) system to position it to enter new channels of business, especially on the export side into Latin American markets.

“Our expansion activities have ramped up with new equipment to arrive later this year and new buildings being constructed which will boost our productive capacity and give us the ability to introduce new brands and innovations. This represents a major growth driver for our company and will be the largest capital expansion undertaken by Wisynco. We look forward to the successful implementation of these projects and increased revenue,” said the report signed by Chairman William Mahfood and Chief Executive Officer Andrew Mahfood.

Wisynco’s 30 per cent associate JP Snacks Caribbean had a net loss of $45.32 million, with its share at $13.60 million. Although Wisynco had a 31 per cent increase in expenses of $2.75 billion and a foreign exchange loss, its net profit rose five per cent to $1.21 billion with earnings per share at $0.32.

For the first six months, Wisynco’s revenue is up 29 per cent to $24.07 billion, with its net profit climbing 18 per cent from $2.13 billion to $2.51 billion. Wisynco declared a $0.22 dividend to be paid on March 3 to shareholders on record as of February 17.

Wisynco’s total assets increased 13 per cent to $27.10 billion, with cash and cash equivalents at $6.83 billion and inventories 85 per cent higher at $5.38 billion due to continued supply chain issues and production lags. Total liabilities and shareholders equity stood at $6.83 billion and $20.26 billion, respectively.

Wisynco’s share price traded down two per cent on Friday to $17.27, which leaves it with a market capitalisation of $64.89 billion. While the chairman hasn’t discussed any information about potential acquisitions following the 2022 annual report, he did say that further information would be revealed at the annual general meeting to be held on February 16 at 10:00 am by the AC Hotel by Marriott.

“Some funds are earmarked for an entirely new business, but we are also hungry for acquisitions and always seeking opportunities that have synergy with our business and meet our commitment to provide great quality at competitive prices,” the annual report added.