William Mahfood Chairman of the Wisynco Group Limited (Wisynco) has released the following summary report as part of the company’s Interim Report to Stockholders- unaudited financial results for the third quarter ended March 31, 2022.
Revenues for the quarter of $9.7 billion represent the highest in the company’s history, an increase of 27.8% above the $7.6billion achieved in the corresponding quarter of the previous year.
Revenues were driven by strong demand in all product categories and channels. Usually, our Q1 and Q2 Revenue patterns represent our higher earning quarters, however this Fiscal Q3 trended higher than Fiscal Q1 and Q2, reflecting the anticipated bouncing back of our economy from the Covid measures being relaxed.
Additionally, our increased focus on Exports have continued driving growth in the channel and we are embarking on additional strategies to continue this trajectory.
Gross Profit for the quarter of $3.1 billion was 21.6% more than the $2.6 billion achieved in the same quarter of the previous year.
Our Gross Margin at 32.3% was 170 basis points lower than the 34% for the corresponding quarter in the prior year due mainly to our LNG plant experiencing disruption in energy supply resulting in the company having to spend an additional $81m to purchase electricity. Additionally, we had production downtime which led to some higher costs of production as well as increased input costs.
Selling, Distribution & Administrative expenses (SD&A) for the quarter totaled $2.1 billion or 10.3% more than the $1.9 billion for the corresponding quarter of the prior year. Our SD&A expense to sales ratio was 21.3% for the quarter, compared to 24.7% in the prior year as management continues to exercise control over our costs.
Profit before Taxation for the quarter was $1.1 billion, which is $283 million or 34.8% higher than the $813 million of the comparative quarter for the prior year and includes a foreign exchange loss of $35.4 million ($67.9 million foreign exchange gain for the comparative quarter last year). YTD profit before taxation was $3.9 billion compared to $2.7 billion in the prior year an increase of $1.2b million or 46.4%.
After provision for taxes, Wisynco recorded Net Profits Attributable to Stockholders of $831 million, or 22c per share for the quarter, which was 24% greater than the $673 million earned for the prior year.
Earnings per share for the prior year quarter was 18c.
Our Balance Sheet remains strong with a current ratio of 2.78 (3.11 for similar quarter last year) and a debt-to-equity level of 10% (15.6% prior year’s quarter).
We expect to commence operations at our Northwest Distribution Center in Hague, Trelawny imminently and we anticipate greater agility and efficiencies from the operationalization of the new Distribution Center. Final testing and calibrations are being conducted.
On April 1, 2022 a fire occurred in an open area away from our distribution centre at our Lakes Pen Complex, thankfully there were no injuries nor any major damage from the fire. The fire occurred near the vicinity of our pallet yard and was contained very quickly by our teams and the fire authorities. Our fire safety measures including ample water availability for pumping to our hydrants at the complex, were invaluable in the containment.
Wisynco is ISO45001 certified (Occupational Health and Safety Benefits) which makes the workplace safe through hazard analysis, risk assessments and permits. The program is enforced through internal and external audits, Corrective Action Requests (CAR) and Corrective Action Plans (CAP) with a focus on prevention. While the occurrence of any fire is an unwelcome event, we are thankful we had no damage, and take this opportunity to thank our first responders and we will continue to heighten the safety culture at Wisynco.
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