February 28, 2025

Tropical Battery Company Limited (Tropical)

Unaudited financials for the first quarter ended December 31, 2024:

Tropical Battery Company Limited (Tropical) for the first quarter ended December 31, 2024 reported a 100% increase in revenue totalling $1.61 billion compared to $809.13 million in the corresponding three months last year.

Year to date, Cost of sales amounted to $1.07 billion (2023: $562.03 million), this represents an increase of 91% year over year. Consequently, gross profit increased by 120% to $543.36 million compared to $247.10 million for the first quarter ended December 31, 2023.

Administrative, marketing and selling expenses increased by 150% to close at $368.08 million (2023: $147.41 million), while Operating profit increased by 76% from $99.69 million in 2023 to $175.28 million for the three months. Notably, Other operating income for the first quarter amounted to $507, 742, a 92% decrease relative to $6.57 million reported in 2023.

Profit before depreciation, net finance costs and taxation  for the three months amounted to $175.79 million, a 65% increase relative to $106.27 million reported in 2023. Depreciation totaled $26.32 million, a 55% increase from the corresponding period last year. (2023: $17.00 million).

Finance costs for the three months amounted to $152.29 million compared to $23.90 million reported in 2023. Finance income totaled $38.34 million versus $6.88 million in the prior period. As a result, Net finance costs for the first quarter ended December 31, 2024, amounted to $113.96 million, a 570% increase relative to $17.02 million reported in 2023.

No tax charge was incurred in the period (2023: Nil) . Net income for the three months amounted to $35.50 million, a 51% decrease from the $72.24 million reported in 2023.

Net profit attributable to shareholders amounted to $24.72 (2023: net profit attributable to shareholders of $64.22 million)

Consequently, Earnings Per Share for the three months amounted to $0.02 (2023: EPS: $0.05). The twelve-month trailing LPS was $0.04 and the number of shares used in these calculations was 1,369,377,273. Notably, Tropical’s stock price closed the trading period on February 27, 2025 at a price of $2.80.

Balance Sheet Highlights

The company’s assets totaled $7.92 billion (2023: $2.55 billion). The movement in total assets was attributable to $2.85 billion increase in ‘Goodwill’ to $2.90 billion (2023: $45.12 million), a $1.06 billion increase in ‘Plant, Property and Equipment’ to $1.25 billion (2023: $197.28 million), an 85% increase in ‘Inventories’ to $1.70 billion (2023: $916.59 million) and a 157% increase in ‘Accounts receivables’ to $1.14 billion (2023: $443.72 million). Conversely, ‘Cash and cash equivalents’ decreased by $51.94 million to $256.63.67 million (2023: $308.56 million).

Shareholders’ equity was $1.06 billion (2023: $1.13 billion), representing a book value per share of $0.78 (2023: $0.82).

Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.

Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.