Alexander Melville Chief Executive Officer Tropical Battery Company Limited (TROPICAL) –has released the following Interim Financial Statements For The First Quarter Ended December 31, 2024

The first quarter of FY2025 has been marked by remarkable revenue growth, with Tropical Battery Company Limited nearly doubling its gross operating revenue to J$1.61 billion, a 99.5% year-over-year increase. This growth underscores our continued expansion, market penetration, and increased sales volumes.

However, despite this strong top-line performance, profitability has been challenged due to rising costs, increased finance expenses, and ongoing strategic investments. While overall sales performance was impressive, Rose Batteries’ sales were below budget due to the cyclical impact of the U.S. election cycle. As a B2B (business-to-business) company, some customers delayed orders due to economic uncertainty surrounding the elections—an industry norm that occurs every four years. We will see a rebound in upcoming quarters, aligning with customer feedback and historical trends. Rose Batteries’ sales have always been lumpy, and we remain confident in the business’s long-term growth trajectory.

Financial Performance Overview

Our gross profit increased by 119.9%, reaching J$543.36 million, demonstrating improved cost management and economies of scale. The gross profit margin expanded to 33.7% from 30.5%, indicating better cost efficiency. However, operating expenses—particularly in administration, marketing, and selling—grew sharply by 149.7%, impacting our overall profitability.

Despite strong operational performance, net profit fell by 50.9% to J$35.5 million, primarily due to a 569.5% rise in finance costs, significantly affecting our bottom line. This was mainly driven by increased debt servicing expenses, which aligned with our ongoing expansion strategy and will be paid down considerably by the cash raised from the upcoming secondary public offering, targeted to close before March 31, 2025.

Revenue Performance

Tropical Battery achieved exceptional revenue growth of nearly 100%, reflecting expanded sales, acquisitions, and new market penetrations. This performance underscores the effectiveness of the company’s strategies in growing its business footprint and capturing market share.

Profitability Analysis

Gross Profit Margin improved to 33.7%, demonstrating better cost management in production. Operating Profit Margin declined to 10.9% (from 12.3%), reflecting increased spending in administrative and marketing areas. YoY spending grew by 149.7%, reflecting bonuses at Rose Batteries and the impact of new revenue manager compensation, a strategic investment in future growth.

Cost and Expense Analysis

Cost of Goods Sold (COGS): Increased 90.5% to J$1.07 billion, slightly lower than revenue growth, contributing to the gross margin improvement.

Administration, Marketing, and Selling Expenses: Surged 149.7%, indicating heightened investment in operational expansion, possibly linked to acquisitions or strategic growth initiatives.

Finance Costs: Increased by 537.3%, from J$23.9 million to J$152.3 million, impacting net profits. Liquidity and Financial Stability Interest income grew by 457.5%, providing some offset to finance costs. Net finance costs surged by 569.5%, impacting net income. Total comprehensive income dropped from J$72.24 million to J$35.48 million, a decline of 50.9%.

Outlook

Notwithstanding current profitability challenges, Tropical Battery’s strong revenue growth and strategic investments indicate a solid market position with long-term potential. The company’s stock price has shown strong performance, gaining over 20% during the past six months, reflecting investor confidence in our business strategy. Additionally, our secondary offering is expected to be completed before the end of March 2025, which will significantly lower our debt costs—by more than half—and strengthen our balance sheet.

These developments position the company for enhanced profitability, reduced financial strain, and sustainable growth in the upcoming quarters. Given near-term profitability pressures, our strong revenue momentum and strategic investments position Tropical Battery for long-term success. We remain committed to enhancing shareholder value through sustainable growth and disciplined financial management.

For More Information CLICK HERE

Businessuite Top 100 Caribbean Companies and CEO – 2024 Digital Edition

Anne Chang Chief Executive Officer and Director of Fontana Limited has released the following unaudited financial statements for the second quarter ended December 31, 2024, which were prepared in accordance with IFRS Accounting Standards.

Income Statement

The company’s quarterly revenue hit a record $2.7 billion, representing an increase of 15.3% over the $2.4 billion for the corresponding quarter last year.

Revenues increased across all locations, with the Portmore store improving substantially over its prior year.

There were increases in all key metrics – sales by category, scripts, average scripts and number of transactions.

Cost of sales increased by 17.9%, resulting in a gross profit of $1.06 billion, an increase of 11.5% over Q2 last year.

Gross margins for Q2 declined slightly from 40.5% to 39.2% but year-to-date margins remain strong, exceeding year-end margins by over 2%.

Operating expenses increased by 16.2%, ending the quarter at $687.9 million compared to $592.2 million last year.

However, due to the Portmore store contributing only six (6) weeks of expenses in the prior year, the comparison is still not an apples-to-apples comparison. The increased expenses were mainly driven by staffing costs, industrial security guard expenses, retirement provisions for senior staff (2025), and reclassification of our pharmacist salaries to remain competitive with the GOJ.

Despite this, our cost-control efforts in general insurance and utilities have yielded positive results, and we continue to monitor and implement efficiency measures.

Operating profit rose 3.9%, closing at $375.3 million versus $361.3 million last year.

Finance costs declined 21.9%, moving from $54.9 million in Q2 last year to $42.8 million this quarter, mainly attributable to foreign exchange gains on the lease liability (IFRS16).

Other income increased by 25.6% ending the quarter at $43.5 million compared to $34.7 million for the corresponding period last year.

EBITDA grew 11.4% to $448.4 million up from $402.5 million last year, a provision for corporate income taxes of $49.4 million was made for this quarter taking the year-to-date tax provision to $61.3 million. There was no comparable provision in Q2 last year as Fontana only completed the 5 full years on the Junior market and qualified for a 50% reduction in the full tax rate effective January 2024. This resulted in a net profit for the quarter of $326.6 million or 4.3% less than that reported for the corresponding quarter last year. Earnings per share moved from $0.27 last year to $0.26 for Q2 this year.

Balance Sheet Total assets at the end of the quarter stood at $5.7 billion, slightly below the $5.8 billion recorded in the same period last year.

Cash and cash equivalents remain strong at $1.6 billion, down 4.4% from the previous year, reflecting the July 2024 dividend payment of $312.3 million.

Shareholders’ equity grew 9.9% to $3.0 billion, up from $2.7 billion in the prior corresponding quarter.

Outlook

The end of the quarter saw the start of exciting new projects such as the implementation of our new integrated POS system for our pharmacy department along with the kick off of a phased roll out of our new HR software. The team is working assiduously on the due diligence process for our recently announced acquisition of the Monarch chain of pharmacies. We are excited to have Monarch join the Fontana family, expanding our footprint in Jamaica and providing more convenient locations for our growing customer base. With strong cash flows and a healthy balance sheet, we remain well-positioned to capitalize on future growth opportunities that will strengthen the company and our position as the number 1 retailer in Jamaica.

For More Information Fontana Limited (FTNA) – Unaudited Financial Statements For Second Quarter Ended December 31, 2024  CLICK HERE

Businessuite 2024 #1 Jamaica Junior Market Company by US$ Profit after Tax Fontana Limited

Profit before tax in the fourth quarter increased to $30M, up from $16.9M for the same period in 2023 despite an extremely challenging year.

The company’s performance demonstrated remarkable resilience and strength in the face of severe adversities. Even more impressively, profit attributable to owners for the period, climbed from $11.5M to $33.1M, a remarkable 187.1% increase. This 47% year-over-year profit growth was achieved despite prolonged environmental challenges that disrupted the agro-processing sector.

The devastation caused by Hurricane Beryl significantly impacted key agricultural crops and infrastructure, with lasting effects still felt across the industry.

Recovery was further hampered by persistent and excessive rainfall throughout the second half of the year, leading to shortages in critical raw materials and increased input costs. One of the hardest-hit crops was ackee, a core product in our portfolio. Repeated weather-related setbacks resulted in reduced yields, strained supply chains, and higher costs, creating additional pressure on operations.

Beyond weather-related challenges, the company also faced escalating costs across the board—including raw materials, packaging, transportation, and energy. These industry-wide cost pressures tested our ability to sustain growth and profitability. However, through strategic planning, proactive decision-making, and supply chain adjustments, we navigated these disruptions effectively.

We identified innovative solutions to manage costs, optimize production, and drive revenue growth, ensuring that we continued to deliver high-quality products to our customers. The exceptional profit growth achieved in the period, not only highlight the strength of our business but also reinforces our commitment to delivering value to our shareholders, even in the harsh and difficult circumstances.

For More Information Spur Tree Spices Jamaica Limited (Spur Tree Spices) Unaudited Consolidated Financial Statements for the Fourth Quarter Ended December 31, 2024. CLICK HERE

The second quarter reflected stable demand for our core services. Revenue for the period increased by 5.7% to $500 million, compared to $473 million in the corresponding quarter last year. This growth was driven by increased passenger volumes across all routes. For the six-month period, revenue rose 8.8% to $1,050 million, up from $965 million in the comparative period. Continued investments in our coach fleet have enabled us to meet growing customer demand and position the company for sustained growth.

Our courier service remains a strong contributor, providing dependable package delivery seven days a week. We are actively focused on expanding into convenient courier locations and improving service processes to better serve our customers.

Our total assets grew 12.5% to $2,062 million as of November 30, 2024, up from $1,833 million a year earlier, reflecting ongoing investments in expanding our coach fleet and other operational resources.

Looking ahead, we anticipate a rebound in travel demand as headwinds from the recent U.S. election cycle and associated travel advisories subside.

Our strategic investments in capacity expansion, customer convenience, and operational efficiency are expected to drive sustainable growth and enhance customer experience in the second half of the financial year.

Oliver Townsend Chief Executive Officer Knutsford Express Limited

The Jamaican Teas Group enjoyed rising sales during the first quarter of the 2024/25 fiscal year and this trend is expected to carry over into the balance of the year.

Manufacturing Division | The highlight for the quarter was the gain in our export sales which rose 38 percent over the prior year. The 6 percent decrease in our local manufacturing sales primarily reflects the high level of sales that took place to Wisynco in the year ago quarter as they built their inventories at the commencement of their new distribution agreement with us which began on Nov 1 2023.

Real Estate Division | Two studio sales were booked this quarter this year versus four in the year ago quarter following the launch of sales at our Belvedere Road project in October 2023. Booked and / or completed sales at the complex have reached the half way stage with 15 studios sold or under contract at time of writing. Retail Division | For this quarter, retail revenues amounted to $219 million, an increase of 10 per cent. This reflects a continuation of the accelerated revenue growth we have seen in our store in recent months.

Investment Division | During this quarter, the prices of stocks on the Jamaica Stock Exchange Main Market increased although prices on the junior market declined. USA Stock Exchanges improved in the quarter. The unrealised gains in our overseas investments were however much lower than a year ago due to declines in the values of our holdings in several home building and construction companies as well as a significant decline in the value of the shares of one of the computer companies we hold. Some of these declines have reversed themselves in January 2025.QWI Investments Limited (QWI) reporting a small net loss of $10 million for the quarter, a significant reversal from their year ago profit of $18 million. While the market outlook is unclear, QWI may not experience profit growth if the profit results of our main investee companies do not continue their improvements over a year ago.

Revenues | JTL’s total revenues for the quarter increased by 9 per cent overall from $840 million a year ago to $913 million this quarter. The reduction in Investment Income mainly reflects the lower unrealised investment gains of QWI referred to above along with higher realized losses recognized from a higher than usual level of share sales undertaken by QWI this quarter. Higher dividend and interest income compared with the year ago period offset some of these unfavourable developments. QWI halved its share portfolio in Trinidad in the quarter due to the disappointing profit outlook of one of its investees. In addition, the company also exited several other investments due to unexpected adverse changes in the business of several of our holdings.

Expenses| The increases in Cost of Sales for the quarter were outpaced by the growth in revenues. As a result our gross profit margin rose from 18.5 per cent a year ago to 20.3 percent this quarter. This improvement arose in part from the consolidation of our two former factory premises into our current factory at Temple Hall which was completed on 31 August 2024. This helped to eliminate expenses duplicated over two premises versus one now. The lower level of low margin real estate sales this quarter also assisted in the margin improvement.

Other expenses were little changed in the quarter except for interest expense which was $4m lower due to lower debt levels and lower interest rates.

Net Profit | Net profit attributable to Jamaican Teas for the quarter was $53 million, a 12 percent improvement from the $47 million profit in the same quarter of the previous year. Total attributable comprehensive income per share was 2.4 cents.

Financial Position| The increase in fixed assets since September 2024 is due mainly to improvements made to the Temple Hall premises. Receivables rose by 15 per, similar to the trend in revenues in the quarter. QWI’s investment portfolio was reduced in size during the quarter due to the share sales referred to earlier. The reductions in inventories reflect real estate sales since Sept 2024 as well as the continuation of right sizing practices in the manufacturing plant purchasing department.

Outlook| The Jamaican economy is heavily dependent on tourism for foreign exchange and employment and its impacts on the wider economy with its linkages to locally produced goods and services. To this end, the continued rebound in visitor arrivals in recent months is encouraging. The recent decreases in interest rates locally will also improve the prospects for our Group.

John Mahfood – Chief Executive Officer/Director Jamaican Teas Group