May 13, 2022
Cargo Handlers Limited (CHL), for the six months ended March 31, 2022, posted revenue totaling $227.07 million versus the $148.81 million booked in 2021. Revenue for the quarter rose by 64% to $110.08 million versus the $67.09 million booked for the same quarter of 2021.
No cost of sales was reported for the six month period and the corresponding period last year. As such, CHL recorded gross profit of $227.07 million (2021: $148.81 million) for the six months ended March 31, 2022. Gross profit for the quarter closed at $110.08 million versus the $67.09 million for the same quarter of 2021.
Gain on exchange closed at $16.18 million relative to a gain of $6.32 million recorded in the prior corresponding quarter. CHL booked other loss for the six months period of $4,616 relative to other income of $2.06 million reported in 2021.
The Company reported a 10% increase in administrative expenses to $14.66 million (2021: $13.31 million), while other operating expenses reflected an increase of 39% to $93.19 million (2021: $67.20 million).
Despite the increases in expense, CHL recorded an operating profit of $135.41 million, up 77% compared with the $76.68 million reported for the corresponding period in 2021. Operating profit for the second quarter closed at $58.24 million (2021: $38.95 million).
The Company reported finance cost of $490,529 for the period; this compares to the finance cost of $577,506 for the same period in 2021. Interest income year to date amounted to $1.71 million (2021: $813,431). Gain in disposal of investment in subsidiary for the period under review amounted to $12.67 million (2021: $6.25 million).
Profit before taxation grew by 80% to $149.30 million versus the $83.17 million documented for the same period in 2021. Pre-tax profits for the second quarter closed at $65.93 million (2021: $45.42 million).
Net profit rose by 80% to $113.89 million (2021: $63.32 million) following taxation $35.41 million (2021: $19.85 million). Likewise, net profit for the quarter rose by 41% to $50.09 million relative to $35.46 million in the previous corresponding quarter.
Earnings per share (EPS) for the six months amounted to $0.27 (2021: $0.15). The EPS for the second quarter was $0.12 (2021: $0.09). The twelve-month trailing EPS amounted to $0.51. CHL stock price closed the trading period on May 12, 2022 at a price of $12.22 with a corresponding P/E ratio of 24.20 times.
CHL noted, “our performance this quarter continues to be positively influenced by steady inflows of bulk cement in support of the company’s rapidly increasing construction sector; this is in addition to increased containerized cargo volumes comparable to where we were prior to 2020. We have also begun to see the return of cruise vessel traffic into the island after more than 18 months of dormancy and have since provided our services to the first home-porting Cruise Line since March 2020.”
Balance Sheet at a Glance:
As at March 31, 2022 ‘Total assets’ rose by 26% to $759.26 million (2021: $604.80 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 $139.47 million (2021: $261.50 million).
Shareholders’ equity as at March 31, 2022 amounted to $661.99 million (2021: $538 million) resulting in a book value per share of $1.59 (2021: $1.29).
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