ASX-listed logistics firm K&S Corporation announced its underlying profits before tax for the first half of the 2023 financial increased 105.5% (over 1H FY22) to $24.1 million.
In an announcement to the ASX, the company said its underlying profit benefited from cost-saving measures, customer re-negotiations, procurement initiatives and improved performance by the Australian Transport segment.
The company’s operating revenue for the half year was $435.5 million, an increase of 17.6% on the same period last year.
K&S said steel volumes from its major customers remained strong and performance of its contract logistics business was “sound”.
“Contributions from our Western Australia-based heavy haulage business also remained sound, underpinned by the continued strength of the mining sector,” the company said.
“Cost reduction strategies have continued to be implemented across the business, in particular, operational efficiencies, supplier re-negotiations, and the rationalisation and replacement of specific fleet.”
The company said providing specific earnings guidance for the second half of the financial year “remains difficult”.
“The current higher inflation and increasing interest rate environment, coupled with cost-base pressures, present down-side risks to the second-half result,” the company told the ASX.
