CHL reports 43% increase in year end net profits

November 11, 2021

Cargo Handlers Limited (CHL), for the year ended September 30, 2021, posted revenue totaling $337.31 million up from $283.46 million booked in 2020. Revenue for the quarter improved by 52% to $82.45 million from $54.31 million booked for the same quarter of 2020.

No cost of sales were 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 $337.31 million (2020: $277.72 million) for the year ended September 30, 2021. Gross profit for the quarter closed at $82.45 million versus $54.31 million for the same quarter of 2020.

Gain on exchange closed at $16.01 million (2020: $25.12 million). CHL booked other income for the period of $2.13 million (2020: $75,000).

Administrative expenses totalled $23.73 million (2020: $25.15 million), while other operating expenses stood at $154.20 million (2020: $146.58 million).

CHL recorded an operating profit of $177.52 million, compared with $131.18 million reported for the corresponding period in 2020. Operating profit for the fourth quarter closed at $39.52 million (2020: $22.88 million).

The Company reported finance cost of $1.18 million for the period; this compares to the finance cost of $1.83 million for the same period in 2020. Interest income amounted to $2.24 million (2020: $1.20 million).

Profit before taxation rose to $207.18 million versus $130.55 million documented for the same period in 2020. Pre-tax profits for the fourth quarter closed at $48.62 million (2020: $22.83 million).

Net profit increased to $153.98 million (2020: $107.64 million) following taxation $53.20 million (2020: $22.91 million). Likewise, net profit for the quarter increased to $36.28 million relative to $14.09 million in the previous corresponding quarter.

Earnings per share (EPS) for the year end amounted to $0.37 (2020: $0.26). For the quarter, EPS amounted to $0.09 (2020: $0.03). CHL stock price closed the trading period on November 11, 2021, at a price of $7.84 with a corresponding P/E ratio of 21.19 times.

Balance Sheet at a Glance:

As of September 30, 2021 ‘Total assets’ rose 21% to $690.73 million (2020: $571.51 million). This increase was primarily driven by Investment in Associate of $133.75 million (2020: nil).

Shareholders’ equity as of September 30, 2021, amounted to $587.44 million (2020: $508.39 million) resulting in a book value per share of $1.41 (2020: $1.22).


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