Qube reports growth in profit, revenue

Qube workers celebrate the first lead-silver concentrate shipment from the Abra Base Metals mine.

A strong full year financial performance over FY23 has been reported by Qube.

In addition to seeing revenue growth increase by 16.2 per cent to $2.99 billion, underlying earnings growth of 26.8 per cent jumped to $280.3 million the company announced this week.

Continued high volumes across agriculture, automotive and container-related logistics activities helped drive the results despite container volumes weakening in the second half of FY23.

Qube Managing Director, Paul Digney, said the business’ FY23 performance was an outstanding result particularly given continuing high inflation which had increased key operating and funding costs during the period and skilled labour shortages.

“Through our ongoing focus on productivity improvements and by leveraging our scale and infrastructure to reduce costs, Qube has again achieved a very good financial performance, with strong underlying earnings growth and high cashflow generation for the period,” he said in a prepared statement.

“Our diversification strategy, together with our substantial investments in people, infrastructure, property, equipment and technology to build capacity, scale and capability, have again ensured the business has been able to withstand inflationary pressures and other challenges while creating significant value for our shareholders,” said Digney.

Qube also completed two acquisitions during the financial year including 100 per cent of Kalari, a respected national bulk transport business.

The company also announced a 16 per cent reduction from FY22 in Lost Time Injury Frequency Rate.

Qube’s Total Recordable Injury Frequency Rate (TRIFR) target saw an increase of around 19 per cent in FY23 to 8.8 per million hours worked, which is better than industry benchmarks the company claimed.

The Logistics and Infrastructure business unit delivered what Qube called “an exceptional result” in FY23 with underlying revenue increasing by 18.9 per cent to $1.34 billion, and underlying EBITA increasing by 54.2 per cent to $224.5 million.

The Logistics and Infrastructure business remains highly diversified with the top 10 L&I customers representing around 14.2 per cent of the Operating Division’s total revenue and includes retailers, manufacturers, food processors and grain traders.

Qube continued to build out its warehouse capacity, including leasing an additional warehouse at Moorebank Logistics Park (MLP) and constructing another new warehouse on Qube’s property at Altona, Victoria with a further warehouse planned for construction at Fisherman Island, Queensland during FY24.

“With continuing high volumes across most commodities and markets, a strong balance sheet and multiple
drivers of growth which we expect to continue, Qube is well placed to maintain this positive operating
performance into FY24 from organic growth and a full period contribution from these recent acquisitions,” said Digney.

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