Tropical Battery plans Additional Public Offering as it bets on stored-energy and EV market growth

 


Tropical Battery Company Limited nearly doubled its gross operating revenue to J$1.61 billion, a 99.5 per cent year-over-year increase for the first quarter ended December 31, 2024.

However, overall net profit fell by 50.9 per cent to J$35.5 million, primarily due to a 569.5 per cent rise in finance costs, significantly affecting bottom line.

This was mainly driven by increased debt servicing expenses, which aligned with ongoing expansion strategy. Management indicates that this debt will be paid down considerably by the cash raised from the upcoming secondary public offering, targeted to close before March 31, 2025, management stated.

Management noted that while “overall sales performance was impressive, Rose Batteries' sales were below budget due to the cyclical impact of the U.S. election cycle.”

The company is nevertheless optimistic about its lines of business which are developing in tandem with market trends.

The global energy storage market is projected to expand from USD 416.02 billion in 2025 to USD 841.19 billion by 2033, reflecting a compound annual growth rate (CAGR) of 9.2 per cent.

This growth is primarily attributed to the increasing integration of renewable energy sources and the need for grid stability.

The U.S. battery energy storage system market is anticipated to witness a CAGR of 30.5 per cent from 2024 to 2030, reaching USD 4.4 billion by 2030. This surge is driven by the need for reliable backup power and the integration of renewable energy sources into critical infrastructure.

Meanwhile, the EV market is expanding swiftly. In 2023, electric cars accounted for approximately 18 per cent of all vehicles sold globally, up from 14 per cent in 2022 (International Energy Agency, 2024).

Projections indicate that by 2024, 25 per cent of all new passenger car registrations will be electric, surpassing 17 million units in sales worldwide (GreenMatch, 2024).

Management at Tropical states, “We will see a rebound in upcoming quarters, aligning with customer feedback and historical trends. Rose Batteries’ sales have always been lumpy, and we remain confident in the business’s long-term growth trajectory.”




Caribbean Money Daily

Comments

Post a Comment

Popular posts from this blog

Kintyre makes US$300,000 investment in Sevens Ice

Image
  Tyrone Wilson Chairman, President and CEO Kintyre Holdings (JA) Limited (KHL) and Seven Kingston Limited, owners of the Seven Ultra Lounge and Restaurant, on January 14 announced a joint venture to launch Sevens Ice. Kintyre Holdings has made an investment in excess of US$300,000 in acquiring an associate stake in Seven and also establishing the start-up for the ice venture. "This initiative addresses Jamaica’s growing demand for high-quality ice, with operations set to begin in Q1 2025," Wilson stated. Additionally, the venture has acquired a cold storage facility to manage its start-up capacity and is exploring the importation of ice to bridge the gap between demand and supply, ensuring a consistent and reliable market presence. Distribution Expansion Wilson said that Sevens Ice has secured a distribution point in Kingston and is in the process of setting up another in St. Catherine to serve the western and central parts of the island. This expansion will ensure broade...
Read more

BCMG increases risk management oversight: Launches surveys-as-a -service

Image
Insurance brokers in Jamaica often send underwriters themselves to survey risks; however, they frequently do not have the technical knowledge required to produce the best results. BCMG Insurance Brokers Limited (BCMG) in response, introduced - in support of the wider brokerage industry - an updated surveys-as-a service product which has been embraced by the wider community as groundbreaking. Senior Risk Manager on the New Business Team of BCMG David Lazarus explains, “We saw where the technical details and in-depth knowledge of the intricacies of business operations were not always being taken into consideration. This was seen as an opportunity to expand into this space.” In 2020, Billy Craig Insurance Brokers and Maritime General Insurance Brokers, MGI, signed an agreement to merge their operations to form BCMG Insurance Brokers Limited. Following the union, the new company has been exploring options to expand the service capability of the brokerage and increase value for clients...
Read more

Headhunting: The art of finding talent in a shrinking labour market

Image
KPMG, PricewaterhouseCoopers (PwC) and BDO -chartered accounting firms and business consultancies - are the main companies to which Jamaican corporates turn for headhunting services. However, there are also sole practitioners who are finding their feet in a climate in which human resource management and talent hunting is in big demand. Also known as an executive search, headhunting differs from traditional recruitment. It is used to hire high level employees such as CEOs. The work of headhunters is getting harder in Jamaica. Wilfred Baghaloo - Partner, Advisory Services - PwC Jamaica comments, “We simply do not have enough qualified persons to provide necessary services to our clients locally and internationally in the financial advisory space. I believe we have reached the point (maybe four years ago) where we need to rethink our working permit immigration plan /approach. “Allowing more immigration and work permits will help us in the financial advisory space and also the country...
Read more