Wisynco Group reported flat profits of $1.2 billion, in the December quarter, from revenues that grew 9.3 percent to $13.25 billion from $12.1 billion in 2022, while revenues rose by 12 percent from $24 billion for the half year to December 2022 to $27 billion in the six months to December 2023, with profits rising nearly 11 percent to $2.77 billion from $2.5 billion in 2022.
Other operating and finance income made a solid contribution to profits with the December quarter reporting $228 million up from $144 million in 2022 and for the half year to December $452 million from $287 million in 2022.
Gross profit margin fell in the second quarter to 33.3 percent, down from 34.7 percent for the same quarter last year, with a Gross Profit of $4.4 billion, 4.7 percent greater than the $4.2 billion of the prior year’s second quarter. According to the company’s management, “this key performance indicator was also adversely affected by the production constraints in November and December 2023 which effectively caused a lower absorption of our fixed costs and limited our product mix for optimal shopper takeup.” The half year performance saw a Gross profit of $9.2 billion up 8 percent from $8.5 billion and the gross profit margin slipped to 34.2 percent versus 35.5 percent in 2022.
Selling and distribution expenses for the quarter amounted to $2.6 billion or 13 percent more than the $2.3 billion for the corresponding quarter of the prior year and rose per cent to $5 billion for the half year from $4.4 billion in 2022.
Wata one of Wisynco best known brands
Administrative expenses climbed 14 percent in the second quarter and for the year to date to $502 million for the second quarter from $439 million in 2022 and $1 billion for the half year from $894 million in 2022. Finance costs fell to $17 million in the second quarter from $99 million in 2022 and for the half year, it declined from $249 million to just $21 million.
For the year to December, earnings per share attributable to stockholders of the group was 32 cents for the quarter and 74 cents for the half year, up from 67 cents in 2020. ICInsider.com’s projection is for earnings of $1.80 per share in 2024, with the stock now trading at $22 with a PE of 12.
Since December 2022 the group added $3 billion to fixed assets and now has loans of $3.6 billion, with cash and investments standing at $11.5 billion and shareholders’ equity of $24 billion.
The Company declared a dividend of 23 cents per share payable to shareholders on March 7.
