Revenues and Profit up for Wisynco Group  

• Wisynco Group Limited recorded a net profit of $1.21Bn for the second quarter ending December 31, 2022, which represents a 4.6% year-over-year (yoy) increase in profitability. Additionally, the company’s bottom line for the six months increased by 18.0% to $2.51Bn when compared to the corresponding period in 2021.
• Revenues for the quarter increased by 27.7% yoy to $12.13Bn, representing the highest recorded in any quarter due to increased demand in all segments, despite having production challenges. Consequently, gross profit of $4.21Bn was 27.6% greater than the $3.30Bn of the corresponding quarter of 2021. However, the company’s gross margin of 34.7% was lower than expectations due, in part, to lower than budgeted production levels and sub-optimum mix of products manufactured resulting in a cost of sales higher than planned. The six-month reported revenue was $24.07Bn representing a 28.7% jump, when compared to the six months ending December 2021.
• For the six-month ended December 2022, SD&A expenses were up 31.0% and ended the review period at $4.44Bn. This was largely due to incremental marketing and promotional costs above the plan as well as inflationary increases in variable expenses associated with increased revenues.
• Wisynco’s stock price has declined by 0.11% since the start of the calendar year. The stock closed Thursday’s trading session at $17.65 and currently trades at a P/E of 15.0x, above the Main Market Distribution & Manufacturing Sector Average of 14.5x.
• Wisynco has major expansion plans with new equipment to arrive later this year and new buildings being constructed to boost its production capacity. This will allow the company to introduce new brands and innovate further. This represents the largest capital expansion undertaken by the company and represents a major growth driver for the company’s revenues once commissioned into service.

(Sources: JSE and NCBCM Research)