The Qube Holdings Ltd (ASX: QUB) share price edged slightly higher today following the release of the company's half-year financial results.
While the Qube share price closed at an increase of just 0.36% at $2.82, shares were trading at a high volume today.
To compare, the S&P/ASX 200 Industrials Index (ASX: XNJ) dropped 2.19%, and the broader All Ordinaries Index (ASX: XAO) closed down 2.95%.
Let's dive in…
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Qube share price up on rise in revenue
The Qube share price made gains today after the logistics provider reported the following highlights for the half-year (ending 31 December 2021):
- Revenue up 26.7% on the prior corresponding period (pcp) to $1.19 billion
- Earnings before interest, taxes and amortisation (EBITA) up 0.7% to $95.1 million
- Net profit after tax (NPAT) down 2.6% to $56.3 million
- Net profit after tax plus amortisation (NPATA) down 2.3% to $64.8 million
- Earnings per share (EPS) down 2.9% to $3.4 million
- Fully franked dividend of 3 cents per share.
These statutory earnings also account for discontinued operations — including its Moorebank Logistics Park (MLP) in South Western Sydney that was monetised in the middle of December. Qube said this monetisation of the site would realise "substantial value for shareholders".
Excluding discontinued operations, EBITA was $112.3 million.
Qube aims for continued growth
Looking at its underlying earnings (NPATA), Qube experienced a record 16.9% increase against the prior corresponding period. Underlying EBITA also rose 18.9% while underlying EPS was up 15.9%.
Despite facing COVID-19 challenges, the company attributed its earnings to "continued organic growth" and "acquisitions and growth capex (capital expenditure) completed in the prior and current periods".
Looking more closely at its operations, the company saw particular earnings growth at Patrick — "Australia's leading container terminal operator". This came "despite scheduling issues and industrial disputes".
Moving forward, Qube aims to see these earnings and EPS growth continue, should the climate of the wider market and COVID-19 challenges remain favourable.
As such, the company said its "strong balance sheet" would assist its "capital management initiatives of $400 million". These are aimed to start in the second half of the financial year.
Finally, the company revealed a 20% boost to its dividend, to 3 cents per share (fully franked). It will be paid to investors on 8 April.
What did management say?
Commenting on the results that helped edge the Qube share price into the green, managing director Paul Digney said:
This is a very strong result in the face of COVID uncertainty and the global supply chain disruptions. It demonstrates once again the robust and resilient nature of Qube's diversification strategy.
For more than a decade we have been building Qube to ensure diversification by asset, location and customer nationwide.
Qube is well placed to manage any emerging inflationary pressures including through contractual protections, ongoing productivity initiatives to increase efficiency and reduce costs, and pro-active engagement with customers to review their roaster logistics supply chain requirements.
Qube share price snapshot
Over the last 12 months, the Qube share price has dropped by nearly 9%. During that year, its shares saw a 52-week high price of $3.46 in September, following the company's announcement to acquire Newcastle Agri Terminal (NAT).
The Qube share price hit a 52-week low of $2.72 earlier this week.
The company has a market capitalisation of $5.39 billion.
