The Kingston Wharves Group recorded a 61 per cent increase in net profit for the year to the end of December 2012, attributable to an upward movement in revenue as a result of growth in the transhipment of motor vehicles.
According to its audited financials, the Group recorded net profit of J$555.73 million, an increase of J$210.7 million or 61 per cent over the J$345.01 recorded in 2011.
Profit before income tax qas J$813.02 million, a 74 per cent increase over 2011. Due to the larger taxable amount, income tax expenses increased by more than 100 percent, moving up from J$122.29 million to approximately J$257.3 million.
Gross profit grew by J$319.1, moving from J$1.23 billion to J$1.55 billion. The increase was mainly due to a 16 per cent increase in revenue from J$3.17 billion to J$3.67 billion.
Grantley Stephenson, Chief Executive Officer and Chairman of Kingston Wharves Group, told Gleaner Business in an interview that the revenue increase was due to an increase in the number of containers passing through the ports with motor vehicles for transhipment.
The Group's direct costs increased by nine per cent or J$182.3 million from J$1.94 billion to J$2.12 billion. Stephenson said the increase was minimized as the company had embarked on an aggressive cost cutting programme.
Operating profit increased by more than two thirds during the review period, mainly due to a 231 per cent increase in operating income. At the end of the period the Group recorded operating income of J$309.42 million, compared to J$93.37 million the previous year.