August 15, 2023
Kingston Wharves Limited (KW) for the six months ended June 30, 2023 reported a 3% decrease in Revenue totaling $4.43 billion compared to $4.56 billion in the corresponding period last year. Revenue for the second quarter had an 8% decrease to close at $2.14 billion compared to $2.31 billion for the comparable quarter of 2022.
Cost of sales amounted to $2.46 billion (2022: $2.35 billion), this represents an increase of 5% year over year. Consequently, gross profit decreased by 11% to $1.96 billion compared to $2.21 billion for the six months ended June 30, 2022. The company booked gross profit of $864.62 million for the second quarter versus $1.11 billion reported for the similar quarter of 2022.
Other operating income increase by 2163% to close at $458.21 million (2022: $20.25 million), while administrative expenses increased by 8% from $757.73 million in 2022 to $816.68 million for the period under review. As a result, operating profit for the six months ended June 30, 2023 amounted to $1.60 billion, a 9% increase relative to $1.47 billion reported in 2022.
Finance Cost for the six months ended June 30, 2023, amounted to $53.62 million, a 6% increase relative to $56.76 million reported in 2022. Finance Cost for the second quarter amounted to $26.77 million (2022: $29.71 million). Profit Before Income Tax totaled $1.55 billion a 10% increase from the corresponding period last year. (2022: $1.41 billion).
Income Tax Expense for the six months ended June 30, 2023, amounted to $245.69 million, a 32% increase relative to $186.42 million reported in 2022. Income Tax Expense for the second quarter amounted to $129.50 million (2022: $95.91 million).
Net Profit for the six months ended June 30, 2023 had a 6% increase to reach $1.30 billion (2022: $1.23 billion). Net Profit attributable to Equity holders of the Company for the six months amounted to $1.29 billion, a 7% increase from the $1.21 billion reported in 2022. For the second quarter, Net Profit attributable to Equity holders of the Company was $610.99 million (2022: $541.18 million).
Consequently, Earnings per share for the six months amounted to $0.91 (2022: EPS: $0.85), while Earnings per share for the quarter totaled $0.43 (2022: EPS: $0.38). The twelve-month trailing EPS was $1.94 and the number of shares used in these calculations was 1,430,199,578.
Notably, KW’s stock price closed the trading period on August 14, 2023 at a price of $29.00 with a corresponding P/E ratio of 14.94x.
Balance Sheet Highlights
The company’s assets totaled $46.38 billion (2022: $41.55 billion). This increase was mainly due to the growth of ‘Property Plant & Equipment’ to close at $32.80 billion (2022: $27.82)
Shareholder’s equity was $36.52 billion (2022: $35.84 billion), representing a book value per share of $25.53 (2022: $25.06).
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