KW posts 2% increase in Q1 net profit

May 17, 2023

Kingston Wharves Limited (KW) for the three ended March 31, 2023 reported total revenue of $2.29 billion, a 2% increase relative to the $2.25 billion recorded for the corresponding period in 2022.

Gross profit for the quarter remained relatively flat at $1.10 billion as cost of sales grew 4% year over year to $1.19 billion (2022: $1.15 billion).

Other operating income for the quarter rose 83% to $146.86 million relative to $80.08 million booked in the prior year’s corresponding quarter.

Administrative Expenses for the first three months ended March 31, 2023 closed 8% higher at $410.07 million compared to $380.76 million booked for the same quarter of 2022.

As such, Operating Profit closed at $834.13 million, 5% higher than the $796.42 million reported in 2022.

Profit before taxation amounted to $807.28 million versus $769.37 million documented in 2022, a 5% uptick year over year.

Notwithstanding, Net Profit for the quarter improved 2% to total $691.08 million relative to $678.86 million recorded for the corresponding period in 2021. This was due to a 28% increase in tax expenses which closed the quarter at $116.20 million (2022: $90.51 million).

Total Comprehensive Income rose by 2% to total $683.54 million relative to $670.65 million recorded for the corresponding period in 2022.

Consequently, Earnings per share for the quarter ended March 31, 2023 amounted to $0.48 (2022: $0.47). The twelve-month trailing earnings per share is $1.89. The total number of shares used in the calculations amounted to 1,430,199,578 units. Notably, KW’s stock price closed the trading period on May 16, 2023 at a price of $$32.44 with a corresponding P/E of 17.14 times.

Balance Sheet Highlights:

As at March 31, 2023, the company’s assets totaled $43.14 billion relative to $41.30 billion a year ago, a 4% increase. The growth in assets was driven mainly by increases in ‘Property, Plant and Equipment’ which closed at $30.73 billion (2022: $27.39 billion).

Shareholders’ Equity amounted to $36.51 billion compared to equity of $35.64 billion reported in 2022.  KW posted a book value per share of $25.53 (2022: $24.92).


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