Wisynco to undertake its largest capital expansion this year Loop Jamaica

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Black Immigrant Daily News

The content originally appeared on: Jamaica News Loop News

Manufacturer Wisynco Group will undertake its largest capital expansion this year to boost productive capacity and its ability to introduce new products to the market.

The company announced expansion activities in notes accompanying its second-quarter results this week.

Wisynco also reported revenues of $12.2 billion for the three months ending December 2022, the highest quarterly turnover in the company’s history.

The Q2 sales represented an increase of 25 per cent more than the $9.5 billion achieved in the corresponding quarter of 2021.

After the provision for taxes, Wisynco recorded net profits of $1.2 billion, which was 4.6 per cent greater than the $1.16 billion.

Though seeing continued demand in all channels, which Wisynco described as “encouraging”, the company experienced d production challenges that kept it from achieving production forecasts and sales targets for both the local and export markets.

For the quarter, gross profits totalled $4.2 billion, 27.6 per cent greater than the $3.3 billion of the prior year’s quarter.

However, gross margins at 34.7 per cent were lower than expected.

Wisynco said the reduction was due, in most part, to lower than budgeted production levels and sub-optimum mix of products manufactured resulting in cost of sales being higher than planned.

Exports for the quarter were up eight per cent over the same quarter of the prior year.

In the meantime, Wisynco is anticipating the arrival of new equipment later this year and preparing to construct new buildings to facilitate increased productive capacity.

“We look forward to the successful implementation of these projects and increased revenue,” said Wisynco.

During the review quarter, Wisynco said it experienced some incremental marketing and promotional costs above plan as well as inflationary increases in variable expenses associated with the increased revenues.

Selling, distribution and administrative expenses for the quarter totalled $2.7 billion or 31.1 per cent more than the $2.1 billion for the corresponding quarter of the prior year.

Wisynco also noted that its balance sheet remains strong with a current ratio of 3.1 compared to 2.85 for last year’s quarter.

Inventories remain on the high side due to continued supply chain issues and production lagging behind production forecasts.

Management expects these inventories to normalize going into Q3 and Q4.