Company reporting 80% increase in half-year net profit

 By Durrant Pate/Contributor

Montego Bay, St James-based stevedoring and equipment leasing company Cargo Handlers Limited has seen its net profit surging by 80 per cent during the March 2022 quarter, due in part to the steady inflow of bulk cement in Jamaica.

The robust cement inflows came in support of the company’s rapidly increasing construction sector. The Jamaican publicly listed Cargo Handlers’ improved profitability during the quarter under review was also credited to increased containerised cargo volumes comparable to where the company was prior to 2020.

The board of directors’ reported that “we have begun to see the return of cruise vessel traffic into the island after more than 18 months of dormancy and have since provided our services to the first home-porting cruise line since March 2020″.

Net profit for the half-year rose by 80 per cent to J$113.89 million, up from J$63.32 million in 2021 following taxation J$35.41 million (2021: J$19.85 million). Net profit for the March quarter rose by 41 per cent to J$50.09 million relative to J$35.46 million in 2021.

Profit before taxation grew by 80 per cent to J$149.30 million versus the J$83.17 million documented for the same period in 2021 while pre-tax profits for the second quarter closed at J$65.93 million, up from J$45.42 million in 2021.

Revenues up by 64% to J$227.07 million

For the six months ended March 31, 2022, Cargo Handlers posted revenues totaling J$227.07 million versus the J$148.81 million booked in 2021. Revenue for the March quarter rose by 64 per cent to J$110.08 million versus the J$67.09 million booked for the same quarter of 2021.

No cost of sales was reported for the six month period and the corresponding period last year. As such, Cargo Handlers’ gross profit amounted to J$227.07 million (2021: J$148.81 million) for the six months ended March 31, 2022.

Gain on exchange closed at J$16.18 million relative to a gain of J$6.32 million recorded in the prior corresponding quarter. The company reported a 10 per cent increase in administrative expenses to J$14.66 million (2021: J$13.31 million), while other operating expenses jumped by 39 per cent to J$93.19 million (2021: J$67.20 million).

Despite the increases in expense, Cargo Handlers recorded an operating profit of J$135.41 million, up 77 per cent compared with the J$76.68 million reported for the corresponding period in 2021. Operating profit for the second quarter closed at J$58.24 million (2021: J$38.95 million).

As at March 31, 2022 Cargo Handlers saw its total assets rose by 26 per cent to J$759.26 million (2021: J$604.80 million). This growth was primarily driven by ‘Investments JMMB’, which amounted to J$262.50 million (2021: nil).

The overall movement in the asset base was however tempered by ‘Cash’ which amounted to J$139.47 million (2021: J$261.50 million). Shareholders’ equity as at March 31, 2022 amounted to J$661.99 million (2021: J$538 million), resulting in a book value per share of J$1.59 (2021: J$1.29).