Kingston Wharves Anchors Growth with Solid Q1

  • For the first quarter ended March 31, 2025, Kingston Wharves Limited (KWL) reported a 6.7% year-over-year increase in net profit attributable to shareholders, to J$796.9Mn. The improved bottom line was supported by robust topline growth.
  • Total revenue for Q1 2025 rose 9.6% year-over-year to J$2.82Bn, compared to J$2.57Bn in the prior year, driven primarily by strong gains in the Terminal Operations and Logistics Services Divisions.
  • The Terminal Operations Division delivered an impressive performance, generating J$2.1Bn in revenues, an increase of 18% or J$316Mn relative to Q1 2024. Operating profit for the division also rose by 18% to J$596Mn, buoyed by a notable increase in transshipment activities, a strategic priority for KWL.
  • The Logistics Services Division saw more moderate growth; it recorded J$1.0Bn in revenues, representing a modest 4% year-over-year increase. However, operating profit declined by 33%, falling to J$250Mn from J$375Mn in Q1 2024. The decline reflects, in part, the reallocation of certain head office charges to the division to enhance visibility into its true operating performance and to promote cost discipline. Additionally, a softening in Less-than-Container Load (LCL) and logistics activities, tied to wider economic pressures in Jamaica and key trading partners, weighed on profitability.
  • Despite the drag from Logistics Services, consolidated operating profit climbed 6.7% to J$796.5Mn. However, this was tempered by a sharp rise in finance costs, which more than doubled to J$78.3Mn for the quarter. The rise in KWL’s finance costs for Q1 was likely due to higher interest expenses, supported by a 46.5% increase in short-term debt between the first quarters of 2024 and 2025.
  • Looking ahead, KWL remains strategically well-positioned. The company continues to partner with local freight forwarders and global operators to ensure reliable, flexible service, while pursuing new growth opportunities. Its diversified, multi-purpose business model helps buffer the impact of cyclical shifts in cargo volumes, and recent investments in cargo-handling infrastructure and digital systems are improving efficiency and service quality.
  • KWL’s stock has declined 8.8% year-to-date, closing at J$30.00 at Tuesday. At this price, the stock trades at a price-to-earnings (P/E) ratio of 15.9x, which is higher than the Main Market Energy, Industrials and Materials Sector’s average of 15.6x.

(Sources: Kingston Wharves Limited & NCBCM Research Limited)