Tropical Battery Company Limited is reporting revenues of JM$521 million for its third quarter (Q3) ended June 30, 2021 — the highest revenue ever achieved in a single quarter in its 70-plus year history.
Managing Director Alexander Melville attributes this 24 per cent or JM$101 million increase to better inventory receivals resulting in adequate stock levels.
“As anticipated in [quarter two’s] outlook, the second half of this fiscal year has proven to be more robust than the first. Even when we compare [the period under review’s] revenues to two years ago (pre-pandemic) — Q3 FY2019 — they were up more than 30 per cent,” Melville said in the report to shareholders.
For the period under review, net profit immensely increased by 378.7 per cent to JM$24.7 million over the comparative period in 2020 ($5.2 million).
Operating expenses came in at JM$115 million or 9.2 per cent above the previous corresponding period, which recorded JM$105 million.
“We are always pleased to see expenses growing at a slower rate than topline revenue and gross profit. Most of the savings came from lowering our Kingston warehouse expenses and containing administrative salary expenses,” Melville explained.
Looking ahead, he indicated that the company’s partnership with CAC2000, through the new company Enervate Limited which provides energy-saving solutions, is off to a promising start.
“We endeavour to build on Q3’s 24 per cent topline growth in our last quarter of the year…we continue to explore and negotiate new product opportunities that fall in line with our core values and have significant growth potential. To this end we anticipate concluding on one of these opportunities within the next six months,” he said.
He pointed out, however, that Tropical Battery is concerned that the Delta variant of the COVID-19 virus will impact its upward momentum, especially if business hours are shortened.