Kelsian Group Limited - FY24 Financial Results Announcement
KLS (KLS) Share Update August 2024 Tuesday 27th
Kelsian Group Reports Strong Financial Growth for FY24
Kelsian Group Limited (ASX: KLS) has reported robust financial results for the year ended 30 June 2024, showcasing significant growth in revenue and profitability.
Instant Summary:
- Revenue from ordinary activities increased by 42.2% to $2,016.8 million.
- EBITDA rose by 103.1% to $265.0 million.
- EBIT increased by 129.2% to $121.7 million.
- Net profit after tax surged by 176.2% to $58.0 million.
- Final dividend of 9.5 cents per share declared.
Financial Performance
Kelsian Group Limited has delivered a strong financial performance for the year ended 30 June 2024. The company's revenue from ordinary activities increased by 42.2% to $2,016.8 million, up from $1,417.8 million in the previous year. This growth was driven by the addition of new contracts in Sydney, the full-year contribution from All Aboard America! Holdings, Inc. (AAAHI), and further expansion and diversification of the essential transport portfolio.
The company's EBITDA rose by 103.1% to $265.0 million, compared to $130.5 million in FY23. This increase reflects the company's ability to manage costs effectively and capitalize on new business opportunities. Depreciation expenses increased by 91.6% to $109.2 million, while EBIT surged by 129.2% to $121.7 million, up from $53.1 million in the previous year.
Profitability and Dividends
Kelsian's net profit after tax and before amortization increased by 122.5% to $92.1 million, while the net profit after tax surged by 176.2% to $58.0 million. These results highlight the company's strong operational performance and effective cost management strategies.
The company declared a fully franked final dividend of 9.5 cents per share, consistent with the previous year. The total dividends for FY24 amounted to 17.5 cents per share, representing a 53.4% return of underlying net profit after tax and before amortization to shareholders.
Operational Highlights
During FY24, Kelsian successfully integrated the AAAHI business in the USA and commenced two seven-plus year metropolitan bus contracts in New South Wales. The company also achieved self-insurance status for Workers Compensation in NSW and secured major rail replacement projects in Perth and Sydney.
Kelsian continued to invest in its fleet and infrastructure, deploying $148.5 million in capital expenditure to replace bus and motorcoach fleets, progress vessel builds, improve infrastructure, and acquire strategic property assets. The company also expanded its presence in the Whitsunday Islands with the acquisition of Red Cat Adventures.
The strong financial performance and significant growth in revenue and profitability are likely to positively impact Kelsian Group's stock price. The company's ability to manage costs effectively and capitalize on new business opportunities has resulted in robust earnings growth. The declared dividend will also be well-received by investors, further boosting investor confidence.
Investor Reaction:
Analysts have reacted positively to Kelsian's financial results, noting the significant growth in revenue and profitability. The successful integration of AAAHI and the commencement of new contracts in Sydney have been highlighted as key drivers of the company's strong performance. Investors are likely to view Kelsian as a solid investment opportunity, given its robust financial health and strategic growth initiatives.
Conclusion:
Investors should closely monitor Kelsian Group's continued growth and strategic initiatives. The company's strong financial performance and effective cost management strategies position it well for future growth. Investors are encouraged to consider Kelsian as a potential addition to their portfolios, given its solid financial health and promising outlook.