Wisynco Q3 2025 Results Fizzle

• Wisynco Group Limited saw its net profit decline 17.5% year-over-year to $971.36Mn, despite continued top-line growth. This softer outturn was driven by margin compression and increased operating expenses, which offset the impact of higher sales.
• Q3 revenues rose 4.8% year-over-year to 13.7Bn, supported by resilient demand for core brands. However, the company still faced headwinds from softer activity across all markets as its export revenues were hampered due to logistics issues in its major markets.
• Cost of sales outgrew revenues, up by 6.0% to $9.22Bn, narrowing gross profit margin by 33 basis points to 32.8%.
• There was further downward pressure on net profits as Selling, distribution and administrative (SD&A) expenses grew by 10.7% to $2.94Bn, outpacing both revenue and gross profit growth. The company noted that its SD&A-to-sales ratio climbed to 21.4%, from 20.3%. As a result, operating profit contracted by 16.5% to $1.09Bn. Still, management expects that additional revenue streams will reduce the ratio.
• Ultimately, the 17.5% Q3 earnings decline contributed to a 12.4% decline for the nine months ended March 2025. Despite the decline in 9M 2025 earnings, Wisynco continues to generate strong cash flows, albeit lower than last year. Net cash provided by operating activities totalled $4.18Bn, reflecting continued profitability and prudent working capital management. These inflows helped support $2.77Bn in capital expenditure as it nears the end of its CAPEX cycle, where it invested in various plant expansions, including new warehouse space and adding new beverage lines to meet local and untapped export demand.
• At market close on Wednesday, Wisynco’s stock was $20.95, down 2.3% from the start of the year. At its current price, Wisynco trades at a P/E of 15.29x, which is below the Main Market Distribution & Manufacturing Sector average of 15.43x.

(Source: Wisynco & NCBCM Research)