November 15, 2024

Cargo Handlers Limited (CHL)

Unaudited financials for the year end ended September 30, 2024:

Cargo Handlers Limited (CHL) for the year end ended September 30, 2024, reported a 8% decrease in Revenue totaling $473.48 million compared to $514.78 million in the corresponding period last year. Revenue for the fourth quarter had a 20% decrease to close at $95.99 million compared to $120.18 million for the comparable quarter of 2023.

Cost of Sales amounted to $4.16 million (2023: $2.58 million), this represents an increase of 61% year over year. Consequently, gross profit decreased by 8% to $469.32 million compared to $512.20 million for the year end ended September 30, 2023. The company booked gross profit of $95.81 million for the fourth quarter versus $120.18 million reported for the similar quarter of 2023.

Administrative expenses increased by 13% to close at $35.08 million (2023: $31.13 million), while Other operating Expenses increased by 4% from $256.80 million in 2023 to $267.12 million in the period under review. As a result, total expenses for the year end ended September 30, 2024 amounted to $302.20 million, a 5% increase relative to $287.94 million reported in 2023.

Operating Profit for the year end ended September 30, 2024, amounted to $195.66 million, a 21% decrease relative to $247.94 million reported in 2023. Operating Profit for the fourth quarter amounted to $54.04 million (2023: $41.75 million). Finance costs totalled $4.24 million a 60% increase from the corresponding period last year. (2023: $2.64 million). Profit before taxation for the year end ended September 30, 2024, amounted to $308.33 million, a 17% decrease relative to $372.53 million reported in 2023. Profit before taxation for the fourth quarter amounted to $104.89 million (2023: $100.84 million).

Taxation for the year end ended September 30, 2024 had a 6% decrease to reach $46.70 million (2023: $49.89 million). Net Profit for the year end amounted to $261.63 million, a 19% decrease from the $322.64 million reported in 2023. For the fourth quarter, Net Profit was $99.65 million (2023: $108.36 million). Consequently, Earnings Per Share for the year end amounted to $0.63 (2023: EPS: $0.78), while Earnings Per Share for the quarter totaled $0.24 (2023: EPS: $0.26). The  number of shares used in these calculations was 416,250,000.

Notably, CHL’s stock price closed the trading period on November 14, 2024 at a price of $11.12 with a corresponding P/E ratio of 17.69x.

Balance Sheet Highlights

The company’s assets totalled $1.28 billion (2023: $1.13 billion). The overall growth in the company’s asset base is primarily attributed to a 23% year-over-year increase in “Property, Plant & Equipment,” which reached $132.19 million (up from $107.60 million in 2023), a 373% year-over-year rise in “Related Companies,” which totaled $79.34 million (compared to $16.77 million in 2023), and a 31% year-over-year increase in “Investment in Associate,” which ended the year at $388.04 million.

Shareholder’s equity was $1.15 billion (2023: $995.06 million), representing a book value per share of $2.77 (2023: $2.39).

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