Wisynco Group Limited reported revenues J$8.1 billion for the first quarter ended September 30, 2020. The results are 6.1 per cent below the J$8.6 billion reported for the same period in 2019.
After taxes, the company recorded net profits attributable to stockholders from continuing operations of $851 million or 23 cents per stock unit.
This compares to $932 million or 25 cents per stock unit for the corresponding period of the prior year.
Management stated the COVID pandemic “has continued to affect various channels of activity within our nation and consequently in our business, specifically in areas such as Tourism, Bars and Entertainment, Restaurants and Schools which have not been able to return to normalcy.”
As a result, they explained revenues to these areas have continued to be impacted.
Wisynco cited what it described as “pockets of improvement,” noting that exports rose 43 per cent or approximately J$56 million over the comparative quarter last year.
Directors attributed the increase to higher demand in the US, Canada and other CARICOM countries for company brands, noting “we continue to press the development of our exports as a means of getting exposure to new revenue channels.”
Gross profit for the quarter of $2.9 billion was 5.9 per cent less than the $3.1 billion achieved in the same quarter of the previous year.
Management noted gross margin at 35.9 per cent was the same as the prior year.
Selling, distribution and administrative expenses for the quarter totalled $1.92 billion or six per cent less than the $2.04 billion for the corresponding quarter of the prior year.
Management said they continue to implement measures to reduce expenses and said expense to sales ratio held at 23.8 per cent of sales in the quarter ended, even though the revenue base was lower than the prior year’s quarter.
Profit before taxation for the quarter was $1.03 billion which was 10.4 per cent less than the $1.15 billion realized in Q1 2019, which included an exchange gain of approximately $67 million greater than the current quarter.
Company assets totalled $15.9 billion at the end of the quarter. Cash and cash equivalents totalled$ 5.86 billion compared to $3.75 billion at September 2019.
Directors commented “our balance sheet remains strong and management is actively reviewing new investments to drive down our costs of operations and to seek new revenues.”
They noted the company received a new long-term loan of $500 million during July 2020, “at a very attractive interest rate and tenure, to refinance the capital outlay on the cogeneration plant.”