January 13, 2023
Kex reported total revenue of $813.05 million, a 72% or $339.83 million increase when compared with the $473.22 million reported for the same period in 2021. For the second quarter, revenues increased by 65% to close the period at $397.96 million versus $240.66 million in 2021. Management noted that, “One of our key initiatives, the Knutsford Express Business Centre, in Drax Hall provides synergies as a key logistics point for our business customers in addition to creating a diversified income stream going forward along with our core transportation business.”
Administrative and general expenses rose by 38% to total $625.48 million (2021: $452.35 million). Consequently, the Company reported a gross profit of $187.57 million compared to $20.87 million for the same period a year ago. While, for the quarter, gross profit amounted to $75.42 million relative to a gross profit of $5.56 million booked in 2021.
Finance costs increased by 168% to $27.75 million for the period under review from $10.35 million for the same period in 2021, while finance income fell to $1.47 million (2021: $2.73 million) in the first six months of 2022.
Profit before taxation amounted to $161.30 million, relative to a gain of $13.43 million reported for the similar period in 2021. Taxation for the period amounted to $18.19 million (2021: nil). Therefore, net profit closed at $143.11 million relative to a profit of $13.43 million booked the prior year. For the second quarter, KEX recorded net profit of $58.88 relative to net profit of $2.13 million recorded in 2021’s second quarter.
Total comprehensive income amounted to $143.11 million relative to comprehensive profit of $15.02 million booked for the six months ended November 30, 2021.
As such, earnings per share (EPS) for the second quarter amounted to $0.118, relative to a loss per share of $0.001 booked in 2021, while for the six months the EPS was $0.29 (2021: EPS $0.03). The twelve-month trailing EPS amounted to $0.43. The number of shares used in our calculations is 500,000,015. KEX’s stock price closed the trading period on January 12, 2023, at a price of $9.51 with a corresponding P/E of 22.35x.
Balance Sheet at a Glance:
As of November 30, 2022, total assets totalled $1.56 billion, $246 million more than the $1.31 billion recorded last year. The increase in total assets was due to increases in ‘Investment Property’ and ‘Investment’ which totalled $485.37 million (2021: $110.45 million) and $19.30 million (2021: nil) respectively.
Shareholder’s equity closed at $894.21 million (2021: $$680.81 million). As such, the book value per share was $1.79 (2021: $1.36).
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