CHL posts 49% increase in first quarter net profit

February 14, 2020

Cargo Handlers Limited (CHL), for the three months ended December 31, 2019  reported revenue of $87.11 million, a 17% lower than the $104.87 million booked in 2018.

Cost of sales closed at $1.70 million (2018: $3.30 million). As a result, gross profit amounted to $85.40 million compared to $101.57 million in the prior comparable period. In addition, other income totalled $75,000 (2018: nil).

Administrative expenses decreased 34% to close at $6.47 million (2018: $9.80 million), while other operating expenses decreased by 3%, amounting to $38.74 million for the period relative to $39.88 million in 2018. Total expense for the quarter amounted to $45.21 million compared to $49.68 million for the corresponding period in 2018.

As such, operating profit rose by 47% from $28.19 million in 2018 to $41.36 million in 2019. Finance costs declined 2% to close the period at $522,655 (2018: $531,302), while interest income booked $271,684 relative to nil the corresponding 2018 quarter.

Profit before taxation rose by 49% to close the period at $41.11 million (2018: $27.66 million). Taxes of $5.20 million (2018: $3.54 million) were accrued during the period, thus net profit amounted to $35.91 million (2018: $24.12 million).

Consequently, earnings per share (EPS) for the quarter amounted to $0.09 compared with $0.06 for the corresponding period of last year. The trailing EPS amounted to $0.34. The numbers of shares used in the calculations are 416,250,000 units. The stock price closed the trading period on February 14, 2020 at a price of $7.95.

Balance Sheet at a glance:-

For the three months ended December 2019, assets totalled $555.20 million relative to $533.11 million as at December 31, 2018. The increase in total assets was largely due to an increase in ‘Receivables’ by $39.42 million to total $133.60 million (2018: $94.18 million).

Equity attributable to stockholders of parent amounted to $500.35 million (2018: $447.96 million) with book value per share amounting to $1.20 (2018: $1.08).

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