August 16, 2021
Cargo Handlers Limited (CHL), for the nine months ended June 30, 2021, posted revenue totaling $254.86 million, 11% up from $229.15 million booked in 2020. Revenue for the quarter improved by 181% to $106.05 million from $37.78 million booked for the same quarter of 2020. According to CHL the increase in revenue is primarily due to, “increased cement throughput as well as shipments relating to ‘special projects’ currently taking place in western Jamaica.”
No cost of sales was reported for the period, in contrast to the $5.74 million posted in the corresponding period last year. As such, CHL recorded gross profit of $254.86 million (2020: $223.41 million) for the nine months ended June 30, 2021. Gross profit for the quarter closed at $106.05 million versus $37.78 million for the same quarter of 2020.
Gain on exchange closed at $12.53 million relative to a gain of $18.29 million recorded in the prior corresponding quarter. CHL booked other income for the nine months period of $2.06 million (2020: $75,000).
The Company reported a 10% decline in administrative expenses to $17.76 million (2020: $19.74 million), while other operating expenses reflected a decrease of 1% to $113.69 million (2020: $114.84 million).
Consequently, CHL recorded an operating profit of $138 million, up 29% compared with $107.19 million reported for the corresponding period in 2020. Operating profit for the second quarter closed at $61.32 million (2020: $10.06 million).
The Company reported finance cost of $939,677 for the period; this compares to the finance cost of $1.49 million for the same period in 2020. Interest income year to date amounted to $1.29 million (2020: $908,632), reflecting a 42% year over increase, this is due to “income derived from our 30% interest in buying House Cement amounted to $13.9M,” as per CHL.
Profit before taxation rose 49% to $158.56 million versus $106.61 million documented for the same period in 2020. Pre-tax profits for the second quarter closed at $75.40 million (2020: $9.80 million).
Net profit increased by 27% to $117.70 million (2020: $92.44 million) following taxation $40.86 million (2020: $14.17 million). Likewise, net profit for the quarter increased to $54.38 million relative to $7.88 million in the previous corresponding quarter.
Earnings per share (EPS) for the nine months amounted to $0.28 (2020: $0.22). The EPS for the second quarter was $0.13 (2020: $0.02). The twelve-month trailing EPS amounted to $0.32. CHL stock price closed the trading period on August 13, 2021, at a price of $7.80 with a corresponding P/E ratio of 24.43 times.
Balance Sheet at a Glance:
As at June 30, 2021 ‘Total assets’ went up by 17% to $672.36 million (2020: $574.45 million). This increase was primarily driven by ‘Investment in Associates’, which amounted to $125.35 million (2020: nil).
Shareholders’ equity as at June 30, 2021 amounted to $592.37 million (2020: $519.42 million) resulting in a book value per share of $1.42 (2020: $1.25).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. 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 affect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
