Wisynco Group Limited Posts Strong Financial Results and Plans for Expansion  

  • Wisynco Group Limited (Wisynco) recorded a net profit of $4.92Bn for the fiscal year ended June 30, 2023, marking a 21.4% increase year-over-year (yoy).
  • The company’s revenues surged 24.7% yoy amounting to 48.71Bn. This record-high revenue came despite production challenges and contributed to a gross profit of $16.86Bn, a 27.2% increase over last year’s $13.25Bn. The company also saw an improvement in its gross margin, which stood at 34.6% this fiscal year, compared to 33.9% in the previous year.
  • On the expense side, Selling, Distribution & Administrative expenses (SD&A) for the year totaled $10.95Bn or 28.3% more than the $8.53Bn for the corresponding period of the previous year. This was primarily due to expanded business activity and the corresponding increase in variable costs as well as inflationary increases across all expense categories.
  • Wisynco stock price has decreased 2.43% since the start of the calendar year. The stock closed Wednesday’s trading session at $17.24 and currently trades at a P/E of 13.2x which is slightly below the Main Market Distribution & Manufacturing Sector Average of 13.4x.
  • In terms of future growth, Wisynco has ambitious expansion plans in the pipeline, including the construction of new facilities to enhance production capacity and introduce new product lines. This marks the company's largest capital expansion to date, and it's expected to positively impact revenue streams and operational efficiencies starting from Q2 of the 2024 fiscal year.

(Source: JSE and NCBCM Research)