Kingston Wharves Q1 profit jumps

Profit before taxation for the March quarter Kingston Wharves jumped 53 percent from $212 million in 2015, to $325 million in 2016. Net profit attributable to shareholders was 48 percent higher at $276 million over the $187 million generated in the similar period in 2015 and resulted in earnings per stock unit of 19 cents, up from 13 cents in 2015.
The strong growth in profits stemmed from revenues that rose 18 percent to $1.2 billion for the quarter, the growth came from an increase of 18 percent from terminal operations and 17 percent from Logistics and Ancillary Services.
“The Group generated revenues of $943 million from terminal operations, with significant contributions from increases in domestic container and motor units. Domestic container and trans-shipment motor units volumes both grew by 20 percent while domestic motor units realized a significant 64 percent increase over the prior year. Kingston Wharves anticipates continued growth in this key segment for the remainder of 2016 as we perfect both our business development and marketing strategies and continue to gain greater operational efficiencies” Jeffrey Hall, Chairman reported to shareholders in their report accompanying the quarterly.
Logistics & Ancillary Services| “The Logistics and Ancillary Services segment also realized significant advances, with total revenue of $257 million. This was attained primarily as a result of the expansion of our local and international customer bases through aggressive market outreach and improved service levels and capabilities in line with Jamaica’s Logistics Hub Initiative,“ Hall, further stated.
Gross profit climbed well ahead of revenues, at 34 percent over the 2015 period and was major factor contributing to the profit gains as well as Administrative expenses that increased by 19 percent to $236 million. Finance costs rose marginally to $39.7 million from $37.2 million while taxation almost doubled to $45 million.
Stockholders’ Equity stood at $17.7 billion and borrowed funds at $2.33 billion at the end of March while short-term investments and cash funds amounted to $3.3 billion. In 2015 the company reported net profit of $1.26 billion or 88 cents per share, for an increase of 49 percent over the $843 million earned in 2014.
The stock last traded on the Jamaica Stock Exchange at $11.65.