August 15, 2024
Kingston Wharves Limited (KW)
Unaudited financials for the six months ended June 30, 2024:
Kingston Wharves Limited (KW), for the six months ending June 30, 2024, reported a 15% increase in revenue totaling $5.11 billion compared to $4.43 billion in the corresponding period last year. Revenue for the second quarter had a 19% increase to close at $2.54 billion compared to $2.14 billion for the comparable quarter of 2023.
The cost of sales amounted to $2.87 billion (2023: $2.46 billion), an increase of 17% year over year. Consequently, gross profit increased by 14% to $2.24 billion compared to $1.96 billion for the six months ended June 30, 2023. The company booked a gross profit of $1.09 billion for the second quarter versus $864.62 million reported for the similar quarter of 2023.
Other operating income decreased by 21% to close at $364.20 million (2023: $458.21 million), while administrative expenses increased by 8% from $816.68 million in 2023 to $885.98 million in the period under review. As a result, operating Profit for the six months ended June 30, 2024, amounted to $1.72 billion, a 7% increase relative to $1.60 billion reported in 2023.
Profit Before Tax for the six months ended June 30, 2024, amounted to $1.63 billion, a 5% increase relative to the $1.55 billion reported in 2023. Profit Before Tax for the second quarter amounted to $789.02 million (2023: $742.59 million). Finance Cost totaled $90.23 million, a 68% decrease from last year’s corresponding period (2023: cost of $53.62 million).
Taxation for the six months ended June 30, 2024, amounted to $210.88 million, a 14% decrease relative to $245.69 million reported in 2023. Taxation for the second quarter amounted to $119.04 million (2023: $129.50 million).
Net Profit for the six months ending June 30, 2024, increased 9% to $1.42 billion (2023: $1.30 billion). Net Profit attributable to shareholders for the six months amounted to $1.35 billion, a 5% increase from the $1.29 billion reported in 2023. For the second quarter, Net Profit attributable to shareholders was $636.87 million (2023: $610.99 million).
Consequently, Earnings per share for the six months amounted to $0.95 (2023: EPS: $0.91), while Earnings per share for the quarter totalled $0.45 (2023: EPS: $0.43). The twelve-month trailing EPS was $2.22, and the number of shares used in these calculations was 1,430,199,578.
Notably, KW’s stock closed the trading period on August 14, 2024, at $27.71, with a corresponding P/E ratio of 12.48x.
Balance Sheet Highlights:
The company’s assets totaled $60.26 billion, a 30% increase from $46.35 billion booked in 2023. This increase is attributed to a 32% year-over-year increase in “Property, plant and equipment” ending the quarter at $43.28 billion (2023: $32.79 billion), a 160% year-over increase in “Retirement Benefit Asset” ending the quarter at $1.53 billion (2023: $588.89 million), Short term investments also witnessed an 8% year over year increase, closing the quarter at $10.35 billion (2023: $9.58 billion) and “Trade & other receivables increased 72% year over year, ending the quarter at $1.57 billion (2023: 915.37 million).
Shareholder’s equity was $47.06 billion (2023: $36.52 billion), representing a book value per share of $32.91 (2023: $25.53).
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