The logistics and fuel trading company reported an underlying profit before tax of A$38.3 million, down 9.0%
LAVERTON: K&S Corporation Ltd. (ASX: KSC) posted a statutory profit before tax of A$42.4 million for the fiscal year ended June 30, 2025, up 2.6% from the prior year, despite a 9.7% drop in operating revenue to A$744.8 million.
The logistics and fuel trading company reported an underlying profit before tax of A$38.3 million, down 9.0% year-over-year, citing contract exits and lower customer volumes. Underlying profit after tax fell 17.2% to A$26.3 million.
The statutory result included a A$4.9 million impairment reversal gain from property revaluations in Bullsbrook, WA, and Townsville, Qld, offset by a A$0.7 million accounting loss on interest rate swaps.
K&S maintained a strong balance sheet, increasing its net debt to A$49.7 million to fund infrastructure upgrades, including a new transport terminal in Adelaide and redevelopment projects in Brisbane and Millicent. The company’s gearing ratio rose to 11.7%, up from 6.3% in FY2024.
The Australian transport segment saw an 11.6% decline in underlying profit after tax, while the New Zealand business delivered stable results. Fuel trading remained profitable but faced revenue and margin pressure amid intense market competition.
Safety metrics worsened, with the lost time injury frequency rate rising to 4.2 from 3.8. The company also faces a pending WHS Act prosecution related to a 2022 incident at its Mt Gambier terminal.
Directors declared a fully franked final dividend of 8.0 cents per share, unchanged from the prior year, bringing the total FY2025 dividend to 16.0 cents.
Looking ahead, K&S expects continued economic softness and rising input costs to pressure FY2026 results, though margin improvements and strategic investments may offer partial offsets.