International Container profit up 321% in 2021
FY21 profit of $429 million USD, up 321% from FY20 profit of $102 million USD.
The international port and logistics company, owned by Enrique Razon, attributed the performance increase to higher operating income (International Container [ICT 226.20 0.79%] booked a 24% increase in gross revenue), and the absence of one-off charges.
If the one-off charges booked in 2020 are excluded, ICT’s recurring net income increased by 57%.
Overall container volume handled by ICT across all of its worldwide ports increased nearly 10%, but the revenue growth was strongest in ICT’s “Americas” segment, where revenue jumped from $443 million USD to $609 million USD.
“Asia” may be ICT’s largest segment contributor to gross revenue (45%), but Americas is ICT’s fastest-growing segment (+34%, compared to +20% for Asia) and is not that far behind Asia in overall revenue contribution percentage (32%).
As for the Russia/Ukraine conflict that threatens the stability of international commerce, ICT said that it is “monitoring the situation closely”.
MB BOTTOM-LINE
The headline profit number is fantastic, but it isn’t as good of an indicator of business health as the 57% profit growth we saw with the 2020 one-off charges removed from the equation.
This is a company that is growing, with a stock price that has been increasing in a near-continuous fashion for almost two years since its COVID-crash low of P70/share back in April of 2020. That’s a 223% gain in just under 24 months.
For reference, one of the strongest post-lockdown stocks has been Jollibee [JFC 241.00 0.74%], and its increase over the same time frame is “just” 136%.
ICT is neck-deep in some extremely challenging business environments around the world, but it is very well-positioned to take advantage of world trade trends, especially those that involve moving natural resources into China from Asia and Africa.
So, while ICT might be monitoring the Russia/Ukraine conflict “closely” (which seems like code for “watching the news just like everybody else”), investors should consider that unless something truly global and disruptive happens, “the spice must flow”, and ICT is the Spacing Guild that will move it around the globe.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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