TROPICAL Battery Limited is reporting an unaudited after-tax profit of $15.5 million for its second quarter ended March 31, 2021 — a 314.4 per cent increase when compared with the previous corresponding period.
The company achieved revenues of $476 million for the quarter under review, a 7.5 per cent increase over the previous corresponding quarter ($443 million). This positive increase reflects some improvements in Tropical Battery's supply chain deliveries amid the COVID-19-influenced delays, Managing Director Alexander Melville stated in the financial report to shareholders.
For the quarter under review, operating expenses came in at $106 million, 11.6 per cent below the previous corresponding quarter which recorded $120 million.
According to Melville, Tropical Battery's gross profit percentage came in at 30.8 per cent, which was below both the budgeted 31.5 per cent and last year quarter-two's 33.2 per cent, resulting from increases in shipping costs and one-off purchases from more expensive suppliers in order to obtain inventory quickly.
He added that increases in lead prices annually also inflated all battery suppliers' cost, and while the company did raise prices during the period, it did not pass on the full increase to its consumers given the current economic environment.
“By year end management believes we should be back to 31.5 per cent or above, based on new/current supply chain agreements,” he continued.
Additionally, total net profit for the first six months of the fiscal year now stands at $34.5 million or 83.5 per cent above the previous corresponding period ($18.8 million).
While total equity was up 4.7 per cent, moving from $735 million at the end of fiscal year September 30, 2020 to $769 million as at March 31, 2021, the difference was attributed to increases in retained earnings.
Melville also noted that the company will be accelerating activities related to its e-store project, which is slated to be launched in June. The e-store will allow customers to shop online and via a mobile app.
Tropical Battery became a public company last year following its successful initial public offering of shares.
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