Tropical Battery Profit Falls 22.0%
- Tropical Battery has recorded a year-over-year decline of 22.0% in its net profit to $44.18Mn for the first quarter of the financial year ending December 31, 2022. Revenue for the quarter was down by 1.9% to $649.44Mn and is largely attributed to the global supply chain issues and the shortage of materials. On the other hand, operating expenses for the quarter came in at $144.70Mn, 26.4% higher than last year's $114.50Mn. This increase was mainly due to higher rental/lease costs.
- TROPICAL’s stock price has decreased by 9.0% since the start of the calendar year. The stock closed Friday’s trading session at $2.01 and currently trades at a P/E of 14.2x, below the Junior Market Distribution Sector Average of 17.5x.
- Tropical Battery’s expansion of the Grove Road location is expected to be completed by December 2024. Affiliated company Diverze Properties previously acquired the neighbouring properties on which Tropical Battery is building a larger retail store with more warehouse and parking spaces. Additionally, the company has indicated that it has taken proactive steps to increase our inventory levels to address any potential supply chain disruptions which may affect revenue generation.