November 15, 2023
Kingston Wharves Limited (KW) for the nine months ended September 30, 2023, reported a 1% increase in revenue totalling $7.05 billion compared to $7.01 billion in the corresponding period last year. Revenue for the third quarter had a 7% increase to close at $2.62 billion compared to $2.45 billion for the comparable quarter of 2022.
Cost of sales amounted to $3.71 billion (2022: $3.62 billion), this represents an increase of 2% year over year. Consequently, gross profit decreased by 1% to $3.34 billion compared to $3.39 billion for the nine months ended September 30, 2022. The company booked gross profit of $1.38 billion for the third quarter versus $1.18 billion reported for the similar quarter of 2022.
Other operating income increased by 314% to close at $645.14 million (2022: $155.79 million), while administrative expenses increased by 14% from $1.09 billion in 2022 to $1.25 billion in the period under review. As a result, operating profit for the nine months ended September 30, 2023, amounted to $2.74 billion, a 12% increase relative to $2.45 billion reported in 2022.
Finance costs totalled $75.76 million, an 8% decrease from the corresponding period last year. (2022: $82.14 million).
Profit before income tax for the nine months ended September 30, 2023, amounted to $2.66 billion, a 12% increase relative to $2.37 billion reported in 2022. Profit before income tax for the third quarter amounted to $1.11 billion (2022: $954.05 million).
Taxation for the nine months ended September 30, 2023, amounted to $385.09 million, a 27% increase relative to $303.75 million reported in 2022. Taxation for the third quarter amounted to $139.40 million (2022: $117.33 million).
Net profit for the nine months ended September 30, 2023, had a 10% increase to reach $2.28 billion (2022: $2.06 billion). Of this, net profit attributable to shareholders for the nine months amounted to $2.22 billion, a 9% increase from the $2.03 billion reported in 2022. For the third quarter, net profit attributable to shareholders was $927.20 million (2022: $820.33 million).
Earnings per share (EPS) for the nine months amounted to $1.55 (2022: $1.42), while EPS for the quarter totalled $0.65 (2022: $0.57). The twelve-month trailing EPS was $2.02 and the number of shares used in these calculations was 1,430,199,578.
Notably, KW’s stock price closed the trading period on November 14, 2023, at a price of $27.71 with a corresponding P/E ratio of 13.74x.
Balance Sheet Highlights:
The company’s assets totalled $48.66 billion; a 15% increase from $42.14 billion booked in 2022. This upward movement was largely due to a 19% increase in property, plant and equipment, which amounted to $33.61 billion (2022: $28.30 billion), followed by a 24% increase in short-term investments, which amounted to $10.85 billion (2022: $8.78 billion).
Shareholder’s equity was $37.41 billion (2022: $36.66 billion), representing a book value per share of $26.16 (2022: $25.64).
Disclaimer:
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.