Cargo Handlers Limited stevedoring, equipment leasing business in Montego Bay continues to be impacted by COVID-19, resulting in a 25 per cent drop in profits for the March 2021 quarter.

Net profit fell to $63.32 million, following taxation of $19.85 million coming from $84.56 million recorded for March 2020. Net profit for the quarter decreased by 27 per cent to $35.46 million relative to $48.65 million in the previous corresponding quarter.

Cargo Handlers recorded an operating profit of $76.68 million, down 21 per cent compared with $97.13 million reported for the corresponding period in 2020. Operating profit for the second quarter closed at $38.95 million (2020: $55.76 million).

The company reported finance cost of $577,506 for the period; this compares to the finance cost of $912,576 for the same period in 2020. Interest income year to date amounted to $813,431 (2020: $591,124).

Pre-tax profit fell by 14%

Profit before taxation fell 14 per cent to $83.17 million versus $96.80 million documented for the same period in 2020. Pre-tax profits for the second quarter closed at $45.42 million, down from the 2020 posting of $55.69 million.

Cargo Handlers Limited for the six months ended March 31, 2021, posted revenue totalling $148.81 million versus $191.37 million booked in 2020. Revenue for the quarter contracted 36 per cent to $67.10 million versus $104.26 million booked for the same quarter of 2020.

No cost of sales was reported for the period, in contrast to the $5.74 million posted in the corresponding period last year. Gain on exchange closed at $6.32 million relative to a gain of $9.46 million recorded in the prior corresponding quarter.

CHL booked other income for the six months period of $2.06 million (2020: $75,000). The company reported a three per cent decline in administrative expenses to $13.31 million (2020: $13.76 million), while other operating expenses reflected a decrease of 20 per cent to $67.20 million (2020: $84.28 million).  

As at March 31, 2021 ‘Total assets’ fell by one per cent to $604.80 million coming from the $608 million posted in 2020. This decline was primarily driven by ‘Receivables’, which amounted to $60.19 million (2020: $183.23 million).

The overall movement in the asset base was however tempered by ‘Investments’ which amounted to $111.40 million.

Directors comment on the global containerised market

In their report to shareholders, the directors noted that, “more than a year into the pandemic, the global containerised market is beginning to show signs of rebounding and according to the World Trade Organization (WTO), it is anticipated that surging US demand for goods in goods in 2021 will begin to drive the trade. Our immediate operating environment is however still being affected by the uncertainty of the pandemic and a return to pre-COVID containerized cargo volumes may not occur before the hospitality sector is once again fully engaged.”

Additionally, the directors stated that, “as Jamaica’s tourism industry slowly regains lost momentum, major Florida based Cruise Lines are now beginning to focus on Jamaica as a possible home-port destination for restarting sailing by the middle of this year. This development coupled with the global vaccine roll-out already in high gear could be the precursor to our return to a sense of normality.”