Wisynco Delivers Record J$65.3Bn Revenue, but Tax and Finance Costs Trim Profit

• Wisynco Group Limited (WISYNCO) closed FY2026 with record revenues, but the strength in its underlying operations did not fully translate to its bottom line as higher finance costs and taxes weighed on earnings. Net profit declined 6.6% to J$4.1Bn, despite revenues from continuing operations rising 14.1% to J$65.3Bn.
• Revenue growth strengthened in the final quarter, increasing 19.0% YoY to a quarterly record of J$17.5Bn. The strong top-line performance was broad-based, supported by increased volumes across the company’s product mix, new product introductions and price adjustments. Price adjustments in part reflected management’s efforts to offset the Special Consumption Tax (SCT) on Non-Alcoholic Sweetened Beverages (NASBs), which took effect on May 1, 2026. This tax on NASBs incurred J$454.0Mn in costs in the final quarter.
• Revenue growth translated into an improvement in gross profitability, with gross profit rising 15.2% to J$22.5Bn and gross margin edging up to 34.4% from 34.1%. The improvement came as major production expansion activities neared completion and utilisation of installed capacity increased. However, some of the benefits were absorbed by selling, distribution and administrative expenses, which rose 16.0% to J$16.8Bn, owing to higher staff costs and property-related expenses to support the business expansion. Consequently, the expense-to-sales ratio was slightly higher at 25.7% from 25.3%.
• Driven by higher interest expense on borrowings and increased foreign exchange losses, finance costs more than tripled to J$848Mn from J$242Mn, limiting the increase in profit before tax to just 2.4% at J$5.6Bn. The modest improvement in pre-tax earnings was further offset by a higher tax charge, which rose 38.8% to J$1.5Bn and included J$564Mn in deferred tax related to accelerated tax allowances on capital expenditure. As a result, net profit declined 6.6% to J$4.1Bn, with net profit margin narrowing to 6.3% from 7.7%.
• With the major production expansion now substantially complete, the next phase will depend on how effectively WISYNCO converts its larger capacity base into earnings. Higher utilisation, continued product innovation and growth in local and export volumes should provide further operating leverage. However, the increased financing burden raises the importance of generating sufficient incremental earnings to improve returns on the capital invested.
• At the close of trading on August 31, 2026, WISYNCO's share price stood at J$19.88, representing a 6.7% increase year-to-date. At this level, the stock trades at a P/E of 18.2x, above the Main Market Distribution & Manufacturing Sector average of 14.8x.

(Sources: Wisynco Group Ltd & NCBCM Research)