Qube reaffirms FY25 guidance but flags 'modest' growth
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The news: Logistics group Qube reaffirmed its full-year guidance but warned that its growth rate is expected to be "modest" compared to FY24.
The numbers: Qube maintained its guidance to deliver continued underlying NPATA and earnings per share pre-amortisation (EPSA) growth in FY25.
However, the group said year-on-year growth would be lower than in FY24, when it reported a 13.2% rise in underlying NPATA and a 13.1% increase in underlying EPSA.
Elsewhere, Qube said it is continuing to progress several asset sales and remains confident that it will realise at least $180 million to $250 million of gross sales proceeds.
The context: For the four months to 31 October, Qube said its containers, forestry, resources and energy businesses performed in line with internal expectations.
Colemans — the integrated transport, logistics and storage business that Qube acquired for $119 million in August — is also performing as expected.
However, in Qube's automotive segment, stevedovering activities fell "slightly below" expectations for the period. While automotive terminals were "slightly above" expectations, they performed "well below" the prior corresponding period. Meanwhile, Qube's agriculture business was "well ahead" of expectations.
Qube noted that its updated guidance reflects an expectation that the underlying NPATA and EPSA in the first half of the year will be "slightly below" the previous corresponding period, driven by higher interest costs, lower earnings from its terminal operator Patrick, as well as Qube's share of losses from its joint venture in the MLOP Interstate Rail Terminal, MITCo.
The source: ASX announcement
