Knutsford Express Services Limited’s Earnings Makes a Wrong Turn for 9M 2025

• Impacted by higher expenses, Knutsford Express Services Limited (KEX) reported a 36.8% decline in earnings to J$169.67Mn for the 9 months ending February 2025 (9M 2025).
• 9M 2025 revenues grew by 7.3%, moving from J$1.53Bn in 2024 to $1.64Bn in 2025, reflecting a slower but sustained growth in service demand.
• However, the company grappled with cost pressures, as administrative and general expenses rose sharply by 16.0% to $1.39Bn. With revenue growth outpacing higher expenses, KEX’s operating profit fell by 24.4% to $248.95Mn.
• The company’s weaker operating performance was compounded by higher net finance costs, which increased by 25.6% to $36.30Mn, reflecting lower finance income (-27.4%) and higher finance costs.
• As a result, profit before taxation dropped 29.3% over the nine months, from J$300.58Mn to J$212.65Mn.
• Amid the falloff in earnings, management pointed to continued macroeconomic softness, including muted passenger arrivals, as a key drag on revenue momentum. However, investments in operations continue, including the ongoing expansion of its coach fleet. The company is also looking to deepen its efforts to digitise its processes to improve operational efficiencies and enhance customer satisfaction.
• KEX’s stock price has depreciated by 15.1% year-to-date. The stock price closed Tuesday’s trading session at $12.02 and currently trades at a P/E of 28.62x, above the Junior Market Other Average of 16.30x.

(Sources: KEX & NCBCM Research)