K&S (KSC) H2 2024 earnings summary

Executive summary

• Operating revenue declined 2.9% to $824.6 million for FY2024, reflecting a challenging transport and logistics sector with high competition and low economic growth.

• Statutory profit after tax rose 9.1% to $31.2 million, while underlying profit before tax fell 3.6% to $42.1 million year-over-year.

• Operating cash flow dropped 35.2% to $65.8 million compared to the previous year.

• Safety improved significantly, with the lost time injury frequency rate reduced from 5.4 to 3.0.

• The Group maintained a strong balance sheet, with gearing (excluding lease liabilities) at 6.3% and net debt at $23.8 million.

Financial highlights

• EBIT increased 1.9% to $44.9 million; EBITDA decreased 2.8% to $87.6 million year-over-year.

• Dividend per share remained steady at 18.0 cents, fully franked.

• Net tangible assets per share rose 10.8% to $2.56.

• Total assets increased 9.3% to $652.4 million; shareholders’ funds up 10.7% to $355.9 million.

• Return on assets was 6.3%.

Outlook and guidance

• FY2025 faces risks from inflation, higher interest rates, input cost pressures, customer de-stocking, and lower construction activity.

• Loss of several customer contracts will pressure results, but price, volume, and margin improvements are expected to partially offset these impacts.

• Focus remains on improving revenue quality, organic and acquisitive growth in specific segments, and continued property investment.