ComfortDelGro (CDG) C52 has reported profit after tax and minority interests (patmi) of $32.8 million for the 1QFY2023 ended March 31, 56.9% lower than patmi of $76.1 million in the corresponding period the year before.
On a q-o-q basis, however, CDG’s 1QFY2023 patmi rose by 28.6%.
In its business update, the transport operator noted that the cost challenges from the high inflationary and high interest rate environment as well as manpower shortages remain. This is offset by the lower oil and gas prices, although prices have remained volatile due to the Russia-Ukraine war. Countries living with Covid-19 as an endemic has also been positive for CDG’s business.
That said, across its markets, Singapore is showing signs of slowing economic growth. The group is also facing driver shortages in Australia as well as well as new terms from successful re-tenders. Recovery is underway for CDG’s operations in the UK and Ireland as the situation in both countries are improving after a “tumultuous” 2022. China’s post-Covid-19 reopening is also seen as a plus for CDG.
Revenue for the 1QFY2023 rose by 2.1% y-o-y to $906.4 million as CDG’s revenues across its segments rose with the exception of its driving centre segment as well as bus station.
Operating profit, excluding non-recurring items, fell by 25.6% y-o-y to $50.1 million
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Net gain on disposal for the quarter plunged to $0.8 million, down from $37.9 million in the corresponding quarter in the year before.
Operating profit fell by 51.6% y-o-y to $50.9 million as the group registered an exceptional gain on disposal of its Alperton property in London in the 1QFY2022 before the full impact of post-Covid-19 inflation and the conflict in Ukraine. The lower operating profit was also attributable mainly to inflationary cost pressures on public transport services.
As at March 31, cash and short-term deposits stood at $1.01 billion. CDG’s net asset value (NAV) per ordinary share stood at 119.6 cents.
Shares in CDG closed flat at $1.18 on May 15.
