- Cargojet (TSX:CJT) has announced its operational and financial results from Q1 2020
- Cargojet’s gross margin shot up 51 per cent, to C$32.2 million, when compared to 2019’s same quarter
- The company’s revenue increased to $123 million for the quarter, up $12.6 million on the previous year
- Adjusted EBITDA landed at $40.2 million, an increase of $7.9 million
- Cargojet (CJT) is down 0.12 per cent, with shares trading at $136.45 and a market cap of $2 billion
Cargojet (TSX:CJT) generated a gross margin of C$32.2 million in its first quarter, which is a 51 per cent increase on 2019’s corresponding period.
The company’s total revenue shot up $12.6 million to $123 million, compared to 2019’s same quarter. Adjusted EBITDA was $40.2 million, an increase of $7.9 million or 24.5 per cent on the previous corresponding period.
Ajay Virmani, President and CEO of Cargojet said the company achieved strong year on year results, along with increased free cash flow.
“While our domestic overnight business held its own as e-commerce maintained its growth trajectory, our diversification strategy to develop and focus on other lines of business such as ACMI and all-in charters is paying off with strong year-on-year growth with strong contribution to overall margins.
“I am particularly proud of our team for swinging into action in tackling the COVID-19 challenge… we moved swiftly to implement effective safety and security measures to protect our team as well as customers while ensuring that much needed supply chain continued the flow for urgent shipments,” he said.
Cargojet sales and activity shot up during the coronavirus pandemic, as the company’s freight service has been in high demand during the lockdowns.
The company also stated they did not know what the long-term implications of COVID-19 would be on the business, so thus it’s very difficult for the company to determine what is going to happen next quarter or for the rest of the year.
Cargojet is however doing much better than the average airline, with passenger liners taking a hammering globally.
The airliner previously announced they were introducing a suite of policies to prevent COVID-19 spread, especially on their smaller routes into far flung northern indigenous communities.
As these communities are especially vulnerable to the virus, the company introduced a strict hygiene regime to ensure they would not be responsible for introducing the disease into said communities.
Cargojet (CJT) is trading down slightly at 0.12 per cent at a per share price of $136.45 per 11:01am EDT.