November 15, 2022
For the nine months ended September 30, 2022, Kingston Wharves’ revenue totaled $7.01 billion a 14% increase when compared to $6.14 billion for the corresponding period of the prior year, while revenue for the third quarter climbed 10% to $2.45 billion (2021: $2.22 billion).
The Terminal Operations division generated operating revenue of $5.60 billion (2021: $4.81 billion) for the nine-month period, representing an increase of 16% over the corresponding period of the prior year. According to KW, “The improved performance in this division was driven by the continued increase in the company’s transshipment container and motor unit business.”
The company’s Logistics Services Division generated revenues of $2.17 billion, reflecting a 10% increase over the prior year.
Cost of sales increased 19% to a total of $3.62 billion (2021: $3.05 billion). As such, gross profit went up by 10% for the period to total $3.39 billion relative to $3.09 billion recorded a year ago. Gross profit within the third quarter climbed 1% to close at $1.18 billion compared to $1.16 billion booked for the quarter ended September 30, 2021.
Other operating income declined year over year, to total $155.79 million (2021: $316.72 million). Administrative expenses went up by 22%, amounting to $1.09 billion relative to $899.03 million for the same period last year.
As such, operating profit closed the period at $2.45 billion, 2% less than the prior year’s total of $2.51 billion. Likewise, operating profit for the quarter rose by 6% to $979.43 million from $925.90 million in 2021.
Finance costs for the period declined 9%, to close at $82.14 million relative to $90.24 million booked for the corresponding period in 2021.
Profit before taxation decreased 2% to $2.37 billion for the period in contrast to the $2.42 billion in 2021.
Income tax expense for the period decreased 11% to $303.75 million compared to $342.43 million for the corresponding period in 2021. As a result, net profit for the period moved from $2.08 billion in 2021 to $2.06 billion, a 1% decrease year over year. For the quarter net profit closed at $836.73 million (2021: $778.20 million).
Net profits attributable to shareholders for the nine months decreased by approximately 0.3% to total $2.03 billion relative to $2.04 billion in 2021. Consequently, third quarter profit attributable to shareholders increased 7% to close at $820.33 million (2021: $764.80 million).
Earnings per share for the nine months ended September 30, 2022 amounted to $1.42 (2021: $1.43), while for the quarter, the EPS was $0.57 (2021: $0.53). The trailing earnings per share EPS totaled $2.23. The total number of shares used in the calculations amounted to 1,430,199,578 units. KW closed the trading period on November 14, 2022 at a price of $35.56 with a corresponding P/E of 15.95 times.
According to Management, “Kingston Wharves is well placed to capitalize on the increased business confidence in Jamaica and the growing international demand for shipping and logistics services from manufacturers and distributors who are diversifying their supply chains in response to the global shocks of the last three years. The Group is leveraging its expertise to meet the demand of the marketplace, and its services as a global motor vehicle transshipment hub and a regional hub for containerized cargo remain in high demand.”
Balance Sheet Highlights:
As at September 30, 2022, the company’s assets totaled $42.14 billion relative to $40.24 billion a year ago, an increase of 5%, which was driven mainly by an increase in ‘Property, Plant and equipment’ and ‘Short-term investments’ which increased 2% and 13% respectively to total $28.30 billion (2021: $27.68 billion) and $8.78 billion (2021: $7.77 billion) respectively.
Shareholders’ Equity amounted to $36.66 billion compared to equity of $34.40 billion reported as at September 30, 2021. As such, KW has a book value per share of $25.64 (2021: $24.05).
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