Napier Port 9M 2025 slides: profit surges 50% on strong revenue growth

Introduction & Market Context

Napier Port Holdings Ltd (NZX:NPH) released its financial statements for the nine months ended June 30, 2025, showing substantial profit growth driven by increased container and bulk cargo volumes. The port operator, which serves as a critical infrastructure hub for New Zealand’s Hawke’s Bay region, has demonstrated resilience and growth despite ongoing global supply chain challenges.

Trading at NZ$3.18 as of August 12, 2025, Napier Port shares have shown stability, remaining within their 52-week range of NZ$2.15 to NZ$3.32. The latest financial results reflect the company’s continued recovery and growth following disruptions from Cyclone Gabrielle.

Quarterly Performance Highlights

Napier Port reported a 50% increase in profit for the nine-month period, reaching NZ$28.62 million compared to NZ$19.09 million for the same period in 2024. This impressive growth was supported by a 12.6% increase in revenue, which rose to NZ$120.64 million from NZ$107.12 million in the prior year.

The company’s earnings per share increased to NZ$0.14, up from NZ$0.10 in the comparable period, reflecting the strong bottom-line performance.

As shown in the following consolidated income statement, Napier Port achieved significant improvement in its operating margin, with profit before finance costs and tax increasing to NZ$43.90 million from NZ$34.10 million:

Container services remained the largest revenue contributor at NZ$72.2 million, followed by bulk cargo at NZ$37.7 million. The cruise segment generated NZ$8.2 million, highlighting the recovery in tourism-related maritime activities. Overall port operations accounted for NZ$118.5 million of revenue, with property operations contributing an additional NZ$2.1 million.

Detailed Financial Analysis

Napier Port’s balance sheet shows a solid financial position with total equity of NZ$424.99 million as of June 30, 2025, an increase from NZ$419.13 million at September 30, 2024. The company’s statement of financial position reveals a disciplined approach to capital management:

The company’s cash flow performance remained strong, with operating activities generating NZ$53.89 million, slightly up from NZ$52.31 million in the prior year. This positive operating cash flow has supported increased investment activities, which used NZ$20.79 million compared to NZ$8.60 million in 2024, indicating the company’s commitment to growth and infrastructure development.

The following cash flow statement illustrates the company’s ability to generate cash while investing in future growth:

Notably, Napier Port recognized NZ$7.5 million in insurance recovery income related to Cyclone Gabrielle, which contributed to the strong financial performance. This recovery helped offset previous damages and business interruption losses from the natural disaster.

The company’s statement of changes in equity shows a balanced approach to shareholder returns, with dividends of NZ$24.94 million paid during the period, significantly higher than the NZ$13.02 million paid in the comparable period of 2024:

Strategic Initiatives & Outlook

Napier Port continues to invest in its infrastructure and capacity, with capital expenditure commitments of NZ$10.2 million outlined in the financial statements. These investments are likely aimed at enhancing operational efficiency and expanding capacity to handle growing cargo volumes.

The company’s financial structure remains conservative, with loans and borrowings of NZ$108.44 million primarily consisting of NZ$100 million in fixed-rate NZD bonds. This prudent financial management provides Napier Port with stability and flexibility for future growth initiatives.

The reconciliation of profit to cash flows from operations demonstrates the company’s strong cash generation capabilities, with adjustments for non-cash items totaling NZ$15.26 million:

While specific forward guidance was limited in the financial statements, the continued investment in infrastructure and strong operational performance suggest management’s confidence in sustained growth. The port’s diverse revenue streams across container services, bulk cargo, and cruise operations position it well to capitalize on New Zealand’s trade activities and tourism recovery.

As global supply chains continue to normalize and regional economic activity expands, Napier Port appears well-positioned to maintain its growth trajectory through the remainder of fiscal 2025.

Full presentation:

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