November 15, 2023
Kingston Wharves Limited (KW) for the nine months ended September 30, 2023, reported a 1% increase in revenue totalling $7.05 billion compared to $7.01 billion in the corresponding period last year. Revenue for the third quarter had a 7% increase to close at $2.62 billion compared to $2.45 billion for the comparable quarter of 2022.
Cost of sales amounted to $3.71 billion (2022: $3.62 billion), this represents an increase of 2% year over year. Consequently, gross profit decreased by 1% to $3.34 billion compared to $3.39 billion for the nine months ended September 30, 2022. The company booked gross profit of $1.38 billion for the third quarter versus $1.18 billion reported for the similar quarter of 2022.
Other operating income increased by 314% to close at $645.14 million (2022: $155.79 million), while administrative expenses increased by 14% from $1.09 billion in 2022 to $1.25 billion in the period under review. As a result, operating profit for the nine months ended September 30, 2023, amounted to $2.74 billion, a 12% increase relative to $2.45 billion reported in 2022.
Finance costs totalled $75.76 million, an 8% decrease from the corresponding period last year. (2022: $82.14 million).
Profit before income tax for the nine months ended September 30, 2023, amounted to $2.66 billion, a 12% increase relative to $2.37 billion reported in 2022. Profit before income tax for the third quarter amounted to $1.11 billion (2022: $954.05 million).
Taxation for the nine months ended September 30, 2023, amounted to $385.09 million, a 27% increase relative to $303.75 million reported in 2022. Taxation for the third quarter amounted to $139.40 million (2022: $117.33 million).
Net profit for the nine months ended September 30, 2023, had a 10% increase to reach $2.28 billion (2022: $2.06 billion). Of this, net profit attributable to shareholders for the nine months amounted to $2.22 billion, a 9% increase from the $2.03 billion reported in 2022. For the third quarter, net profit attributable to shareholders was $927.20 million (2022: $820.33 million).
Earnings per share (EPS) for the nine months amounted to $1.55 (2022: $1.42), while EPS for the quarter totalled $0.65 (2022: $0.57). The twelve-month trailing EPS was $2.02 and the number of shares used in these calculations was 1,430,199,578.
Notably, KW’s stock price closed the trading period on November 14, 2023, at a price of $27.71 with a corresponding P/E ratio of 13.74x.
Balance Sheet Highlights:
The company’s assets totalled $48.66 billion; a 15% increase from $42.14 billion booked in 2022. This upward movement was largely due to a 19% increase in property, plant and equipment, which amounted to $33.61 billion (2022: $28.30 billion), followed by a 24% increase in short-term investments, which amounted to $10.85 billion (2022: $8.78 billion).
Shareholder’s equity was $37.41 billion (2022: $36.66 billion), representing a book value per share of $26.16 (2022: $25.64).
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