Date; August 14, 2019
Wisynco Group Limited for the year ended June 30, 2019 reported total revenue of $28.69 billion, a 17% increase when compared with the $24.54 billion reported for the same period in 2018. Total revenues for the quarter amounted to $7.85 billion, reflecting an increase of 21% over the $6.49 billion achieved in the corresponding quarter of the previous year.
Cost of sales for the period amounted to $18.15 billion, up 18% relative to $15.42 billion reported in 2018. Consequently, gross profit rose 16% to close the year at $10.54 billion compared to the $9.12 billion a year earlier. Gross profit for the quarter amounted to $2.52 billion, a 6% increase on the $2.39 billion.
Total expenses for the year ended rose 14% to close at $7.23 billion (2018: $6.37 billion), “and are in line with the increased revenue” the company noted. Of total expenses, selling and distribution expenses climbed 13% to total $6.13 billion (2018: $5.41 billion), while administrative expenses increased 15% to $1.10 million (2017: $956.68 million). Total expenses for the fourth quarter rose 9% to $2.03 billion (2018: $1.86 billion). Other income for the year ended increased 213% to $288.65 million (2018: $92.16 million).
As such, WISYNCO booked a 27% increase in operating profit to $3.60 billion (2018: $2.85 million).
Finance income for the year amounted to $119.22 million, down 9% from the $130.84 million reported for the corresponding period in 2018. Management noted, “Finance income included a gain of $142.3 million due to the revaluation of our USD deposits during the quarter.” Finance costs increased 9% to $230.21 million for the period from $211.21 million for 2018.
Profit before taxation amounted to $3.50 billion, relative to $2.77 billion reported in 2018, a 26% increase year over year. Taxation for the period amounted to $567.20 million (2018: $513.83 million). The company reported no profit from discontinued operations relative to $41.55 million in 2018. As such, net profit of $2.93 billion (2018: $2.29 billion) was posted for the year ended June 30, 2019, representing a 28% increase year over year. Net profit for the fourth quarter amounted to $691.26 million relative to $565.61 million in 2018, a 22% increase year over year.
Earnings per share (EPS) for the year ended amounted to $0.78 (2017: $0.61), while the EPS for the quarter amounted to $0.18 (2017: $0.15). The number of shares used in our calculations is 3,750,000,000. Notably, WISYNCO’s stock price closed the trading period on August 14, 2019, 2018 at $23.83.
The Company noted, “The final quarter of the year saw a greater percentage increase in sales of existing third party products within our portfolio. Whilst these products increased sales and impacted positively on the company’s revenue some challenges were experienced resulting in lower gross profit margins for the quarter (32.1% vs 36.8% for the corresponding quarter of the previous year). Certain initiatives have been implemented which, management feels, will lead to improvement in the gross profit margin in the near term. Depreciation charges also increased by $256 million over FY18, driven by the investment in new state-of-the-art beverage equipment installed in FY18.”
Balance Sheet at a Glance:
As June 30, 2019, WISYNCO’s assets totalled $17.78 billion, 13% more than the $15.73 billion recorded last year for the same period. The increase in total assets was largely due to increases in ‘Inventories’ by $1.03 billion to close at $3.23 billion (2018: $2.20 billion).
Shareholder’s equity closed at $11.09 billion (2017: $8.69 billion). As such, the book value per share was $2.96 (2018: $2.32).
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. 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.