Industry News

Qube shows resilience in H1 FY2024 results

Qube has demonstrated a solid performance for H1 FY2024, with improvements in all key underlying financial metrics.

For H1 of FY2024, Qube saw an underlying revenue growth of 8.7 per cent to $11.6 billion flowing through to underlying earnings (EBITA) growth of 8.0 per cent to $156.8 million.

Underlying NPATA increased by 6.5 per cent to $141.2 million for the period, and underlying earnings per share amortisation (EPSA) increased by 6.5 per cent to 8.0 cents per share.

The result reflected a higher earnings contribution from all parts of the group, with both business units in the Operating Division and all of Qube’s associates delivering higher profits in the half compared to the prior corresponding period.

Qube Managing Director, Paul Digney, said the results for the period again demonstrated the value of Qube’s diversification in insulating against macroeconomic challenges and headwinds in some markets.

“This is another pleasing result for Qube, which shows both the strength of the business and our success in leveraging Qube’s extensive asset base and scale to improve productivity and efficiency across our operations,” he said.

“While the high interest rate environment and wider macroeconomic challenges did create challenges through the half, the combination of our strong financial position, together with our diversification by markets and geography supported continued organic growth as well as further accretive investment, including several complementary acquisitions.”

Patrick Terminals, which is 50 per cent owned by Qube, was the largest driver of Qube’s earnings growth in the period – reflecting a very high market share.

The business unit delivered a 21.1 per cent increase in underlying NPATA to Qube of $44.8 million.

Underlying revenue generated by Patrick increased by 15.6 per cent to $462.2 million year-on-year (YOY) and underlying EBITDA improved by 21.1 per cent to $200.2 million in H1 FY2024.

According to Qube, the high market share of 49 per cent for the period reflected additional service wins secured in late FY2023.

Qube’s Logistics and Infrastructure (L&I) business unit delivered a modest increase in underlying earnings in H1 FY2024 despite a decline in revenue.

Underlying EBITA grew by 2.9 per cent to $121.9 million while underlying revenue declined from $692 million in H1 FY2023 to $667.7 million in H1 FY2024.

The result reflected continued high volumes across most of Qube’s containerised activities including transport, empty container parks and warehouse activities as well as high volumes of vehicles, roll on-roll off, general and project cargo at Qube’s automotive terminals.

The key weakness in the period, according to Qube, was lower agri (grain) volumes following a very strong contribution in FY2023.

Overall, Qube expects to deliver growth in full year underlying NPATA and EPSA in FY2024 compared to FY2023 although the growth rate is expected to be below the strong growth rate that was achieved in FY2023.

While the extent of earnings growth remains difficult to forecast given the various opportunities, challenges and uncertainty across Qube’s core markets, based on the current outlook, Qube presently expects that FY2024 underlying NPATA and EPSA will be between five to 10 per cent above the FY2023 underlying NPATA and EPSA.

“The actual full year earnings growth will depend on a range of factors including market
conditions and volumes in Qube’s key markets, any further adverse weather events, the
inflationary and interest rate environment and the labour and industrial relations
environment,” the company said.

“Qube remains well placed to deliver sustainable long-term underlying earnings growth.”

In other news, a longstanding non-executive Director has retired from Qube Holdings.

The post Qube shows resilience in H1 FY2024 results appeared first on Trailer Magazine.

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