Wisynco Group Thrives with Surging Revenues and Profits, Eyes Historic Expansion  

  • Wisynco Group Limited recorded a 38.6% yoy increase in net profit attributable to shareholders of $1.15Bn for the third quarter that ended March 31, 2023. Moreover, the company’s bottom line for the nine months increased by 23.8% to $3.66Bn when compared to the same period in 2022.
  • Revenues for the quarter were up by 23.4% yoy to $11.97Bn, due to the resolution of production challenges from the second quarter, allowing the company to ramp up production and meet increasing demand. Despite an increase in the cost of sales by 19.2% to $7.83Bn, it was outpaced by revenue growth. Consequently, the gross margin was higher in the March 2023 quarter at 34.6% (March 2022:32.3%). Revenue for the nine months was up yoy by 26.9% to $36.05Bn.
  • Selling, Distribution & Administrative expenses for the quarter amounted to $2.26Bn, a 26.8% increase from the $1.78Bn reported for the corresponding period of the previous year. The increase can be attributed to additional Marketing and Promotional costs. SD&A for the nine months ending March 2023 was up 29.5% yoy to $6.69Bn.
  • Wisynco’s stock price has declined by 3.89% since the start of the calendar year. The stock closed Thursday’s trading session at $16.98 and currently trades at a P/E of 13.4x which is below the Main Market Distribution & Manufacturing Sector Average of 14.2x.
  • Wisynco has major expansion plans with new buildings being constructed to boost its production capacity, enabling it to introduce new brands. This will be the largest capital expansion undertaken by the company in its history and represents a significant growth driver for its earnings. The flexibility and increased output resulting from this expansion programme will ensure that the company meets the current demands of local and export markets and pave the way for additional capacity for growth in varied product lines. The benefits of this CAPEX is expected to be realized midway through Fiscal Year 2024.

(Source: JSE and NCBCM Research)