Date: May 14, 2019
Kingston Wharves Limited (KW) for the three ended March 31, 2019 reported total revenue of $1.83 billion, a 12% increase relative to the $1.63 billion recorded for the corresponding period in 2018.
The company noted, “The Terminal Operations division generated operating revenue of $1,455 million for the three-month period, an increase of 9% over the corresponding period of the prior year. Divisional profits increased by 37% from $385 million to $527 million year on year. The positive start to 2019 is a direct result of strategic investments in key areas of our terminal facilities and operations, which continue to positively impact our efficiency and profitability. Our Logistics Services division continues to experience strong and steady growth. This division generated revenues of $498 million, an increase of 26% over the prior year. The main drivers in this business segment continue to be our automotive logistics, warehousing, distribution, and freight-handling services targeting commercial, industrial and personal-effects clients. KWL’s growth strategy of product diversification, timely capital investments in modern warehousing and cargo storage infrastructure and technology, and human resource development, have been critical to the success of the division. Also, critical to our growth has been ongoing measures to improve customer service delivery. The division generated first quarter operating profits of $148 million, a 78% increase over the prior year.”
Cost of sales for the period grew by 2% to a total of $901.57 million compared to the $887.79 million for the same period last year.
Gross profit closed the period at $931.46 million, a 25% increase from the $745.25 million recorded a year ago.
Other Operating Loss for the period totaled $24.11 million relative to an income of $51.64 million booked in 2018.
Administrative Expenses for the period declined by 2%, amounting to $295.33 million from the $300.15 million recorded for the same period last year.
As such, Operating Profit closed the three months period at $612.02 million, a 23% or $115.28 million increase relative to the $496.74 million recorded for the comparable period in 2018.
Finance Costs for the period declined 21% total $47.59 million relative $59.87 million recorded for the same period in 2018. The company also booked Share of results in associated company of $120,000 relative to nil the prior year.
Profit before taxation closed the period at $564.55 million, growing 29% year over year (2018: $436.87 million).
Taxation charges amounted to $106.0 million for the period, a 69% increase relative to the charges of $62.83 million incurred for same period last year.
Notwithstanding, Net Profits for the period rose by approximately 23% to total $458.55 million relative to $374.04 million recorded for the corresponding period in 2018.
Net Profits attributable to shareholders rose by approximately 23% to total $452.61 million relative to $368.47 million recorded for the corresponding period in 2018.
Consequently, Earnings per share for the year ended March 31, 2019 amounted to $0.32 (2018: $0.26). The twelve month trailing earnings per share is $1.42. The total number of shares used in the calculations amounted to 1,430,199,578 units. Notably, KW’s stock price closed the trading period on May 14, 2019 at a price of $65.96.
Additionally, KW noted, “The first quarter of 2019 reflected the momentum of our solid performance. Over the coming months, we will seek to maintain our profitability and consolidate our position as leaders in the regional terminal and logistics marketplace.”
Balance Sheet Highlights:
As at March 31, 2019, the company’s assets totaled $32.38 billion relative to $29.27 billion a year ago, a 11% increase. The growth in assets was driven mainly by increases in both ‘Short Term Loans’ and ‘Right of Use Assets’ which closed at $4.30 billion and $987.77 million respectively to nil for each the prior year.
Shareholders’ Equity amounted to $25.14 billion compared to equity of $23.34 billion reported in 2018. KW posted book value per share of $17.58 (2018: $16.40).
Disclaimer:
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.