Andrew Mahfood, Chief Executive Officer For Wisynco Group Limited (Wisynco) Has Released The Following Interim Report To Stockholders For The Third Quarter Ended March 31, 2023.
Revenues for the quarter of $12.0 billion represent an increase of 23.4% above the $9.7 billion achieved in the corresponding quarter of the previous year and, notably, is the second continuous quarter that the company has recorded sales of $12.0 billion.
“We have resolved some of the production challenges faced in the 2nd quarter and are seeing increased production to meet the increasing demand.”
The capital program mentioned below will contribute to bringing stability and expansion to our production capacity as demand in all channels continues to be favorable.
While the Gross Profit of $4.1 billion of the current quarter is the same as the preceding quarter, this represents a 32.2% increase to the $3.1 billion of the prior year’s quarter.
Similarly, Gross Profit Margin at 34.6% this quarter is higher than the 32.3% for the
same quarter last year, but below our expectation due to production output being lower than projected which impacted our product mix.
Selling, Distribution & Administrative expenses (SD&A) for the quarter totaled $2.7 billion or 30.0% more than the $2.1 billion for the corresponding quarter of the prior year in line with increased growth and revenue. Our SD&A expense to sales ratio was 22.5% for the quarter, compared to 21.3% in the prior year. The increase can be attributed to additional Marketing and Promotional costs and inflationary increases in other variable expenses.
Profit before Taxation for the quarter was $1.57 billion, an increase of 43% over the $1.10 billion of the comparative quarter for the prior year.
After provision for taxes, Wisynco recorded Net Profits Attributable to Stockholders of $1.2 billion, or 31c per stock unit for the quarter, which was 38.6% greater than the $831 million or 22c per stock unit earned for the prior year.
Our Balance Sheet remains strong with a current ratio of 3.7 compared to 2.8 for last year’s quarter. This improvement is due to an injection of funds from our borrowing facilities, partly offset by increases in our inventories, reduction in our payables, and purchases of capital assets per our expansion plan. Inventories remain on the high side as production output was lower than projected in January and February. Management expects these inventories to normalize within the next few months.
Capital expansion activities are well underway, the benefits of which should be realized midway through Fiscal Year 2024. We are excited and optimistic to be embarking on the largest capital expansion ever undertaken by Wisynco. The flexibility and increased output resulting from this expansion program will ensure we meet the current demands of local and export markets and pave the way for additional capacity for growth and future innovations in our varied product lines.
From a sustainability point of view, we continue to be a primary contributor financially, and in the areas of strategy and governance, to Recycle Partners of Jamaica (RPJ), an organization responsible for polyethylene terephthalate (PETE) recycling nationally. We are seeing improvements to the RPJ average collection rate and will continue efforts to support this organization in its mission to reduce plastic in the environment. Additionally, we continue to focus on areas of water and energy conservation in our own production and operational processes, as a means to reducing our impact on our environs.
Socially, we launched our WATA Wednesdays School Tour during the quarter, which is a program aimed at educating our youth on the benefits of staying healthy and hydrated. We also participated, through our energy drink brand BOOM in conjunction with Food for the Poor in the latter’s “Build Back the Love for Jamaica” campaign as we continue to contribute to building homes for the homeless. The company has further committed to building an additional 10 homes for 2023 which brings our total from 2020 to 30 homes through Food for the Poor.
Internally, the company continued its staff engagement exercises by hosting a leadership forum for all Wisynco Leaders, as well as a Women’s Day Luncheon to celebrate the dedication and commitment of the women of Wisynco.
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