Tropical Battery is ramping up its exports, which could mean more money for shareholders!

So, Tropical Battery recently incorporated a new US subsidiary called Tropical Battery USA. This will be the base for their export business.

For those of you not familiar with Tropical, it is an automotive manufacturing and distribution company. The company makes and sells car batteries and other branded products like engine oil, windshield washers, etc.

According to Tropical, the new subsidiary will help push its North American growth plans.

And the first stop is Amazon. 

Tropical says it now has a Fulfillment by Amazon account or FBA. With an FBA account, Amazon will be able to store, pack, ship, and deliver Tropical’s products to customers in every area it services. 

This is a HUGE deal because of Amazon’s reach. They have hundreds of warehouses and deliver across the US.

Somebody in Alaska could order engine oil and Amazon will get it to them. Tropical wouldn’t be able to do that from Jamaica. Or they could, but it would be super expensive. You know, Jamaica’s most popular US markets are the ones that are relatively close, like Florida and New York. 

Plus, Amazon also ships to Canada and Mexico, so with this fulfilment account, Tropical is actually breaking into three markets at once.

The company said the service should be up and running by September.

And Tropical is definitely in growth mode; the company recently entered the Dominican Republic by acquiring 50 percent of solar energy company, Kaya Energy Group. So, that means they’re also branching out into the solar energy market.

So big things ahead, Tropical said it predicts up to a 20% increase in revenue from its deal with Amazon. 

According to their six-month numbers at the end of March, Tropical’s revenues climbed to $1.3 billion, with $94 million in profits.

So, what does this mean for you and your money? Quite possibly more money for you – if you’re a shareholder of course.

Since listing on the JSE in late 2020, Tropical Battery has paid out dividends three times.  They started out in 2021 at just one cent per share, but their last payment was 4 cents per share in December 2022. So, it’s clear that shareholders are benefitting from the company’s improved performance.

And that’s literally the bottom line.