GKE Corporation, the integrated warehousing and logistics solutions provider, has reported earnings of $2.9 million for 2H20 ended May 31, a turnaround from the $444,000 loss a year ago.
This translates to earnings per share of 0.37 cents, compared to the 0.09 cents from a year ago.
This brings GKE Corp’s full-year earnings to $4.7 million from the $2.1 million loss last year.
Revenue for the half-year period grew 7.3% y-o-y to $52.3 million from higher utilisation of warehouse space and higher revenue from its ready-mix concrete plant.
Revenue for the full year grew by 21.6% y-o-y to $107.3 million.
Cost of sales for 2H20 fell marginally by 0.1% y-o-y to $40.7 million due to government support schemes.
Conversely, cost of sales for FY20 grew by 17.1% y-o-y to $85.4 million.
Gross profit for the half-year period rose 45.2% y-o-y to $11.6 million mainly due to higher revenue from Wuzhou Xing Jian. Gross margin therefore increased by 16.4% to 22.2% in 2H20.
Gross profit for the full year increased by 42.8% y-o-y to $21.8 million mainly due to the higher gross margin from GKE Corp’s ready-mix concrete manufacturing plant and government support schemes.
As at May 31, cash and cash equivalents stood at $20.7 million, compared to the $9.3 million the year before.
Shares in GKE Corp closed 0.7 cent higher, or 9.6% up, at 8 cents on Wednesday (29 July), prior to the announcement.
