Tropical Battery buys Ferry property

 

Caribbean Money Daily -- Tropical Battery Company Limited (Tropical) announced on Tuesday March 26 the acquisition of Lot 12 Ferry Pen, located in Kingston 20, Jamaica. The effective date for the purchase was September 19, 2024. 

The property is land previously owned by sister entity Diverze Properties Limited, itself owned by DAI Diverze Limited. Acquisition cost was approximately J$950 million.

The location is the site of Tropical’s headquarters in the Ferry Commercial Park to which the company relocated in 2020.

Tropical said in its disclosure that the purchase “supports Tropical Battery’s growth initiatives, enhancing operational capabilities, reduces related-party loans, and is expected to positively impact financial performance.”

Selling company DAI Diverze (Jamaica) Limited is a holding company with assets including a 40 per cent stake in Chukka Caribbean Adventures of Saint Lucia, a nature tourism business with subsidiaries in Jamaica, Belize, Grand Turk in the Turks and Caicos Islands.

Tropical battery is a wholly owned subsidiary, a Jamaican company selling automotive batteries and lubricants and other necessity products under its own brand.

Subsidiary Diverze Properties Limited is owned 100 per cent by DAI Diverze. It is a l estate holding company, which in turns owns 14 properties, which provide rental income and includes lands proposed for development.

Topical’s audited report for year ending September 30, 2024, is late but in financials provided for the third quarter and the first nine months of fiscal year 2024 management reported that the period “has been marked by rapid growth driven by strategic acquisitions and enhanced operational efficiencies.”

For the third quarter of 2024, Tropical reported gross operating revenue reaching $1.9 billion from $782.8 million last year, an increase of 143.6 per cent year-over-year, a development primarily attributed to the 100 per cent acquisition of Rose Batteries in San Jose, California, and the 51 per cent acquisition of Kaya Energy in the Dominican Republic.

Gross profit for the quarter was $623.3 million, up 172.6 per cent from the previous year with management outlining “higher sales volumes, improved cost efficiencies, and favourable pricing strategies.”

The quarter’s EBITDA was $255.1 million, a 272.8 per cent increase year over year.

Net income for the quarter doubled to $121.3 million, up 212.5 per cent from last year. Return on Equity(ROE) for the quarter was 38.7 per cent.

For the nine Months YTD financial performance saw material growth for the first nine months of FY2024, with gross operating revenue doubling from $2.13 billion in the previous year to $4.27 billion.

Gross profit rose by approximately 104 per cent from $667 million to $1.36 billion. Operating profit increased 136 per cent from $195 million to $460 million.

There were notable non-recurring acquisition-related costs of approximately $77 million, said by management to be strategic investments for long-term growth.

Management said that a statutory equipment inspection certification for the Ferry location was completed and submitted it to the Ministry of Labour and that a renewal application for factory re-registration was also submitted.

Caribbean Money Daily

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