August 11, 2022
Unaudited Financials for the Nine Months ended June 30, 2022: –
Cargo Handlers Limited (CHL), for the nine months ended June 30, 2022, posted revenue totalling $353.67 million versus the $254.86 million booked in 2021, representing a 39% increase. Revenue for the quarter rose by 19% to $126.60 million versus the $106.05 million booked for the same quarter of 2021. Management noted, “The increase in revenue this period is attributable in part to improving containerized cargo numbers post-lockdown in addition to the seasonal return of home-porting cruise vessel traffic into Montego Bay relative to the prior year.”
No cost of sales was reported for the nine-month period and the corresponding period last year. As such, CHL recorded gross profit of $353.67 million (2021: $254.86 million) for the nine months ended June 30, 2022. Gross profit for the quarter closed at $126.60 million versus the $106.05 million for the same quarter of 2021.
Gain on exchange closed at $17.24 million relative to a gain of $12.53 million recorded in the prior corresponding period. CHL booked other loss for the nine months period of $4,616 relative to other income of $2.06 million reported in 2021.
The Company reported a 23% increase in administrative expenses to $21.77 million (2021: $17.75 million), while other operating expenses reflected an increase of 26% to $143.27 million (2021: $113.70 million).
Despite the increases in expense, CHL recorded an operating profit of $205.86 million, up 49% compared with the $138 million reported for the corresponding period in 2021. Operating profit for the third quarter closed at $70.45 million (2021: $61.32 million).
The Company reported finance cost of $972,274 for the period; this compares to the finance cost of $939,677 for the same period in 2021. Interest income year to date amounted to $2.07 million (2021: $1.29 million).
Profit before taxation grew by 55% to $245.46 million versus the $158.56 million documented for the same period in 2021. Pre-tax profits for the second quarter closed at $96.16 million (2021: $75.40 million).
Net profit rose by 63% to $191.78 million (2021: $117.70 million) following taxation $53.68 million (2021: $40.86 million). Likewise, net profit for the quarter rose by 43% to $77.89 million relative to $54.38 million in the previous corresponding quarter.
Earnings per share (EPS) for the nine months amounted to $0.46 (2021: $0.28). The EPS for the third quarter was $0.19 (2021: $0.13). The twelve-month trailing EPS amounted to $0.56. CHL stock price closed the trading period on August 10, 2022 at a price of $13.99 with a corresponding P/E ratio of 24.92 times.
CHL noted, “external factors continue to pose a threat to the local economy, in particular the conflict between Russia and Ukraine and the negative impact it is having on global commodity prices. We are mindful of the effect of these factors on global trade and despite the challenges we remain confident that the industry within which we operate, will be able to withstand and adjust to the associated shocks. While local demand continues to drive the majority of our cargo handling activities, we are cautiously optimistic that we will see a continuation of this into the ensuing two quarters providing there is no escalation of the aforementioned conflict and geopolitical tensions in Asia are kept in check.”
Balance Sheet at a Glance:
As at June 30, 2022 ‘Total assets’ rose by 24% to $830.56 million (2021: $672.36 million). This growth was primarily driven by ‘Investments JMMB’, which amounted to $262.50 million (2021: nil). The overall movement in the asset base was however tempered by ‘Cash’ which amounted to $163.59 million (2021: $295.96 million).
Shareholders’ equity as at June 30, 2022 amounted to $739.88 million (2021: $592.37 million) resulting in a book value per share of $1.78 (2021: $1.42).
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