KW reports 1% decline in three months net profit attributable to shareholders

May 17, 2021

Kingston Wharves Limited (KW) for the three ended March 31, 2021 reported total revenue of $1.85 billion, a 1% decline relative to the $1.88 billion recorded for the corresponding period in 2020.

The Company noted, “The 2021 first quarter will be the last time that we compare the current results of operations for KWL with a reporting period before the full onset of the Covid-19 pandemic and all of its associated restrictions on global travel, social engagement and general business activity. Despite the ongoing challenges associated with the pandemic, we have recovered much of the lost ground.”

Cost of sales for the period grew by 3% to a total of $975.10 million compared to the $944.08 million for the same quarter last year.

Gross profit closed the period at $875.62 million, a 6% decrease from the $932.27 million recorded a year ago.

Other operating income for the period totaled $119.96 million relative to the $140.35 million booked in the prior corresponding quarter.

Administrative Expenses for the period climbed fell 7%, amounting to $314.85 million from the $337.33 million recorded for the same quarter last year.

As such, Operating Profit closed the three months period at $680.72 million, a 7% decline relative to the $735.29 million recorded for the comparable period in 2020.

KW’s Finance Costs for the period declined 11% total $35.76 million relative $40.16 million recorded for the same quarter in 2020.

Profit before taxation closed the period at $644.97 million, 7% less than the $695.14 million reported a year prior.

Taxation charges amounted to $84.71 million for the period, a 36% decline relative to the charges of $133.20 million incurred for same period last year.

Notwithstanding, Net Profit for the period fell marginally by 0.3% to total $560.25 million relative to $561.94 million recorded for the corresponding period in 2020.

Net Profit attributable to shareholders fell by approximately 1% to total $547.77 million relative to $553.73 million recorded for the corresponding period in 2020.

Total comprehensive income for the quarter amounted to $668.92 million (2020: $480.83 million).

Consequently, Earnings per share for the year ended March 31, 2021 amounted to $0.38 (2020: $0.39). The twelve-month trailing earnings per share is $1.56. 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 14, 2021 at a price of $47.04 with a corresponding P/E of 30.15 times.

KW noted, “KWL continues to tap into technology to enhance our processes and have implemented a contactless cargo clearance platform “Click N Collect”, and an e-Services platform as a onestop-shop for all its online payment options. These tools are an essential component of the company’s effort to improve customer convenience, reduce in-branch activity and help in the fight against COVID-19.”


Balance Sheet Highlights:

As at March 31, 2021, the company’s assets totaled $38.97 billion relative to $32.43 billion a year ago, a 20% increase. The growth in assets was driven mainly by increases in both ‘Property, plant and equipment’ and ‘Short-term loan’ which closed at $27.84 billion (2020: $22.30 billion) and $6.45 billion (2020: $5.02 billion), respectively.

Shareholders’ Equity amounted to $33.47 billion compared to equity of $27.07 billion reported in 2020.  KW posted book value per share of $23.40 (2020: $18.92).



Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.