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Cargo Handlers revenues jump 181% in June quarter

Montego Bay, Jamaica-based Cargo Handlers Limited experienced a bumper June quarter with revenues jumping by 181 per cent to JM$106.05 million, coming from JM$37.78 million booked for the same quarter of 2020.

The company, which is in the business of providing stevedoring services, equipment leasing and management services, saw an 11 per cent increase in revenues for the nine month ended June 30, 2021.

Revenues for the period amounted to JM$254.86 million, up from the JM$229.15 million booked for the comparable period in 2020.

According to CHL, the increase in revenue for the June quarter is primarily due to, “increased cement throughput as well as shipments relating to ‘special projects’ currently taking place in western Jamaica”.

No cost of sales was reported for the period, in contrast to the $5.74 million posted in the corresponding period last year. As such, CHL recorded gross profit of JM$254.86 million (2020: JM$223.41 million) for the three quarters.

Gross profit for the quarter closed at JM$106.05 million versus JM$37.78 million for the same quarter of 2020. Gain on exchange closed at JM$12.53 million relative to a gain of JM$18.29 million recorded in the prior corresponding quarter.

Cargo Handlers booked other income for the nine-month period of JM$2.06 million coming from JM$75,000 in 2020. The company reported a 10 per cent decline in administrative expenses to JM$17.76 million, down from JM$19.74 million in 2020, while other operating expenses reflected a decrease of one per cent to JM$113.69 million.

Montego Freeport’s cargo terminals (Photo: DredgeWire)

Consequently, the Jamaican company recorded an operating profit of JM$138 million, up 29 per cent compared with JM$107.19 million reported for the corresponding period in 2020. Operating profit for the second quarter closed at JM$61.32 million, up from the 2020 posting of JM$10.06 million.

The company reported finance cost of JM$939,677 for the period compared to JM$1.49 million reported for the same period in 2020. Interest income year to date amounted to JM$1.29 million, up from JM$908,632 in 2020, reflecting a 42 per cent year over increase.

Cargo Handlers attributes this improvement to “income derived from our 30 per cent interest in buying House Cement amounted to JM$13.9 million.”

As a result, profit before taxation rose 49 per cent to JM$158.56 million versus JM$106.61 million documented for the same period in 2020.

Pre-tax profits for the second quarter closed at JM$75.40 million (2020: JM$9.80 million). Net profit increased by 27 per cent to JM$117.70 million following taxation of JM$40.86 million. As such, net profit for the quarter increased to JM$54.38 million relative to $7.88 million in the previous corresponding quarter.

— Durrant Pate