May 14, 2024

Cargo Handlers Limited(CHL)

Unaudited financials for the six months ended March 31, 2024:

Cargo Handlers Limited (CHL) for the six months ended March 31, 2024, reported a 5% decrease in Revenue totalling $272.78 million compared to $287.94 million in the corresponding period last year. Revenue for the second quarter had a 13% decrease to close at $133.38 million compared to $153.60 million for the comparable quarter of 2023.

The cost of Sales for CHL amounted to $3.85 million, marking a significant 49% increase compared to $ 2.58 million in 2023. This increase had a direct impact on the Gross Profit, which decreased by 6% to $268.93 million for the six months ended March 31, 2024, compared to $ 285.36 million in the same period last year. The second quarter saw a Gross Profit of $130.80 million, down from $152.67 million in 2023.

Administrative expenses increased by 18% to close at $19.33 million (2023: $16.37 million), while Other operating Expenses increased by 26% from $117.20 million in 2023 to $147.80 million in the period under review. As a result, total expenses for the six months ended March 31, 2024, amounted to $167.13 million, a 25% increase relative to $133.57 million reported in 2023.

Operating Profit for the six months ended March 31, 2024, amounted to $102.19 million, a 37% decrease relative to $161.84 million reported in 2023. Operating Profit for the second quarter amounted to 42.46 million (2023: $86.31 million). Finance costs totalled $2.02 million, a 120% increase from last year’s corresponding period. (2023: $917762).

Profit before taxation for the six months ended March 31, 2024, amounted to $134.51 million, a 32% decrease relative to $197.42 million reported in 2023. Profit before taxation for the second quarter amounted to 54.19 million (2023: $103.24 million).

Taxation for the six months ended March 31, 2024, decreased 35% to reach $30.03 million (2023: $46.51 million). Net Profit for the six months amounted to $104.48 million, a 31% decrease from the $150.91 million reported in 2023. For the second quarter, Net Profit was $40.12 million (2023: $75.63 million).

Consequently, Earnings Per Share for the six months amounted to $0.25 (2023: EPS: $0.36), while Earnings Per Share for the quarter totalled $0.10 (2023: EPS: $0.18). The twelve-month trailing EPS was $0.66, and the number of shares used in these calculations was 416,250,000.

Notably, CHL’s stock price closed the trading period on May 14, 2024, at a price of $14.50, with a corresponding P/E ratio of 21.85x.

Balance Sheet Highlights

The company’s assets totalled $1.19 billion (2023: $996.21 million), showcasing a significant increase. This growth was attributed to a massive increase in taxation recoverable of 23.09 million (2023: $271,137.00), resulting in an 8416% YoY. The company also saw material growth in its Short-term deposits of $19.61 million, which resulted in an ending balance of $451.16 million (2023: $431.557 million), a 5% YoY increase and a $11.17 million increase in Cash, which resulted in a closing balance of $160.89 million (2023: $149.72 million) a 7% YoY growth. These figures reflect the company’s commitment to sustainable growth and financial stability.

Shareholder’s equity was $1.04 billion (2023: $881.40 million), representing a book value per share of $2.50 (2023: $2.12). This increase was mainly accredited to a $160.07 million increase in retained earnings, resulting in an ending balance of $998.12 million (2023: $838.05 million), 19% YoY growth.

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