Tropical Battery doubles revenue after acquisitions but profit dips

 

 Tropical battery increased revenues in financial year ended September 30, 2024, to $5.62 billion, up from $2.8 billion at year end 2023, but high selling and finance costs and other charges ate away at earnings.


Net profit for the year came out at $ 19.86 million compared to $139.84 million at year end 2023. Total comprehensive income year end was set at $ 33.83 million , down from $95.36 million in 2023.

Earnings per stock unit at year end was $1.00¢, down from $10.4¢ at the end of 2023.

Tropical Battery, however, quadrupled assets year over year. Total assets at September 30, 2024, were $4.32 billion, compared to $1.6 billion at year end 2023.

Tropical battery is a 75 per cent subsidiary of Dai Diverze (Jamaica) Limited which itself is a subsidiary of Diverze Assets Inc, in St. Lucia.

With operating units located in the United States and Jamaica the Group’s primary activities are selling and distributing energy storage solutions, including automotive and renewable energy batteries, across Jamaica and the Caribbean while also providing custom battery assemblies for applications through Rose Batteries in the U.S.

The Group offers renewable energy solutions and electric mobility sales and services. It is an exporter of spent batteries for recycling and has expanded into new markets, leveraging investments like Kaya Energy and Rose Batteries to strengthen ipresence in the renewable energy and energy storage sectors.

In 2024 the cost of sales/operations for Tropical battery was $3.76 billion compared to $1.93 billion in 2023. Administration, marketing and selling expenses came out at $1.6 billion, significantly up from $630.4 million in 2023.

Finance costs , meanwhile, were $475.82 million in 2024 compared to $ 92.1 million in 2023. Taxation charges were $ 14.5 million compared to $4.93 million in 2023.

Cash and cash equivalents at year end were $ 461.67 million compared to$ 189.45 million in 2023;

Leading up to year end, for the third quarter of 2024, gross operating revenue for the Group reaching $1.9 billion from $782.8 million in 2023, an increase of 143.6 per cent year-over-year, 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.

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.

Tropical Battery Company Limited (the Company) is incorporated and domiciled in Jamaica, and its registered office is at 30 Automotive Parkway, Kingston 20. The Company stock units were listed on the Jamaica Stock Exchange Junior Market (JSE) on September 29, 2020.

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