Andrew Mahfood Chief Executive Officer for Wisynco Group Limited (Wisynco) – has released the following Interim Report to Stockholders for the second quarter ended December 31, 2022.
Revenues for the quarter of $12.1 billion is the highest turnover in a quarter in the company’s history and represent an increase of 28% above the $9.5 billion achieved in the corresponding quarter of the previous year. We are seeing continued demand in all channels, which is very encouraging, unfortunately we had production challenges that kept us from achieving our production forecasts and sales targets for both the local and export markets. Exports for the quarter were up 8% over the same quarter of the prior year.
Gross Profits of $4.2b were 27.6% greater than the $3.3b of the prior year’s quarter however Gross Margins at 34.7% were lower than expectations due, in most part, to lower than budgeted production levels and sub optimum mix of products manufactured resulting in cost of sales being higher than planned.
Selling, Distribution & Administrative expenses (SD&A) for the quarter totaled $2.7 billion or 31.1% more than the $2.1 billion for the corresponding quarter of the prior year. Our SD&A expense to sales ratio was 22.7% for the quarter, compared to 22.1% in the prior year. During the quarter under review we experienced some incremental Marketing and Promotional costs above plan as well as inflationary increases in variable expenses associated with the increased Revenues.
Profit before Taxation for the quarter was $1.49 billion or 3.3% lower than the $1.54 billion of the comparative quarter for the prior year. This quarter included an exchange loss of $71.4 million compared to a $279.5 million exchange gain for the comparative quarter last year.
After provision for taxes, Wisynco recorded Net Profits Attributable to Stockholders of $1.2 billion, or 32c per stock unit for the quarter, which was 4.6% greater than the $1.16 billion or 31c per stock unit earned for the prior year.
Our Balance Sheet remains strong with a current ratio of 3.1 compared to 2.85 for last year’s quarter. Inventories remain on the high side due to continued supply chain issues and production lagging behind production forecasts. Management expects these inventories to normalize going into Q3 and Q4.
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.
Wisynco continues to be a primary contributor financially and in areas of strategy and governance to Recycle Partners of Jamaica (RPJ) as the Charitable organization responsible for PETE recycling nationally. RPJ intends to start reporting nationally its success rates on collections. We also continue to focus on areas of energy conservation and reduction of our Carbon footprint, through various measures.
During the quarter the company presented 200 scholarships nationally valued at $60,000.00 each to students who were selected in the Wata Jamaica 60 campaign. We were also a key sponsor of the Issa School Boy football which provides opportunities to develop the talent of our youth and their abilities to excel. We partnered with numerous organizations to have Christmas treats all over the island and assisted with the Tarrus Riley and Friends free Christmas concert in Emancipation Park.
We declared an interim dividend of 22c per stock unit payable on March 3, 2023 to our Stockholders, and this represents a 10% increase over the 20c interim dividend per stock unit paid on March 1, 2022.
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