Tropical Battery Company Limited in its updated audited results for year ending September 30, 2020, reported total year revenue of JM$1.87 billion, an improvement over JM$1.74 billion in inflows for 2019.
However, net profit for the battery seller declined to JM$29.34 million for the 2020 year end, significantly below the JM$62.9 million net profit reported at September 30, 2019.
In the year under review, the cost of sales surged to JM$1.29 billion, compared to JM$1.23 billion the year before.
Gross profit reached JM$568.91 million at year-end 2020, compared to JM$514.03 million in the similar period in 2019. However, administrative and other expenses for the company were higher in 2020 at JM$440.14 million compared to JM$400.89 million in 2019.
Tropical Battery also reported much higher impairment losses on trade receivables, which climbed to JM$6.36 million at September 2020 compared to JM$1.14 million in 2019.
In addition, net finance costs trended higher in 2020 at JM$42.2 million, this compared to $12.9 million at year end September 2019.
The impact of COVID-19 on the company was reduced in final quarter of 2020 when revenues climbed to JM$506 million, which is 2.6 per cent above 2019 fourth-quarter results.
In the final quarter report to shareholders, management cited new COVID-19-related expenses and one-time IPO-related expenses.
They said that higher administration, marketing and selling expenses were due to the net effect of efficiency improvements and additional expenses from COVID -19.
Audited results indicate EPS of JM$0.034 per share at year-end 2020 compared to EPS of JM$0.075 in 2019.
Management reported an increase in total equity by 41.9 per cent, driven mainly through increases in retained earnings and cash received from the initial public offering.
Assets climbed to around JM$1.3 billion as reductions in current assets were offset by capital expenditure associated with the company’s new warehouse.
Management indicated at the end of the year that it will be focusing on acquisitions and partnerships of aligned profitable companies in Jamaica and across the Caribbean region.
They noted in the Q4 report, “To this end, we have entered into discussions with several key partners to assist in identifying suitable acquisition targets.”
Tropical Battery, which deals both in batteries and auto accessories, became a 75 per cent subsidiary of Dia Diverze Jamaica Limited as a result of a company amalgamation in early 2019. It listed on the Junior Market of the Jamaica Stock Exchange in September 2019.