Performance Highlights

PPAP 4Q23 Review: Net Profit Plunges 34% YoY

Container throughputs up 2.9% YoY in 4Q23, but down 5.1% YoY in 2023

• In 4Q23, container throughput slightly increased 2.9% YoY to 91,186 twenty-foot equivalent units (TEUs). On the other hand, the total volume of the containers decreased by 6.7% in 4Q23 compared to the same period last year. The decline in container traffic can be attributed mainly to a 18.9% YoY decrease in import shipments to 265,796 tons, while export shipments grew moderately by 8.1% YoY to 293,422 tons. However, total cargo shipments in 4Q23 rose slightly by 1.8% YoY, driven by 37.1% growth in general cargo shipments.


• In 2023, annual container throughputs decreased by 5.1% YoY to 396,225 TEUs, posting a negative growth for the first time since at least 2010. While container throughputs for exports grew 7.8% YoY, this was offset by a 7.7% YoY decrease in container throughputs for imports. Annual volume shipped through container cargoes edged down 0.2% YoY to 2.43 million tons. On the other hand, general cargoes rebounded, surging 20.6% YoY to 930,298 tons after experiencing two consecutive years of decline in 2021 and 2022. Meanwhile, oil & gas cargoes decreased 4.1% YoY to 783,901 tons.

Top line declines 4.6% YoY due to decrease in container traffic

• PPAP earned KHR33.4bn in total revenue in 4Q23, up 1.8% YoY, driven mainly by the income from port services. Income from stevedoring and LOLO services grew modestly by 2.5% YoY and 0.1% YoY, respectively. Income from port services the 3rd largest revenue source soared 17.8% YoY to KHR5.52bn, due to the jump in passenger boat traffic with the recovery of the tourism activities.


• Total revenue in 2023 dropped by KHR6.8bn or 4.6% YoY to KHR142bn due to the decrease in container throughputs. Major revenue sources showed a decline, with stevedoring dropping 5.4% YoY, LOLO falling 5.6% YoY, and storage plunging 49.9% YoY. Only port service posted a solid growth of 12% YoY, earning KHR19.8bn thanks to the rebound in the tourism activities.

EBITDA plunges 21.3% YoY in 4Q23

• In 4Q23, despite a slight increase in revenue (+1.8% YoY) and a decrease in operating costs (-1.8%), the significant decline in other income by 79.4% YoY to KHR1.4 bn resulted in 21.3% YoY drop in EBITDA to KHR17bn. This decline led to a squeezing of the EBITDA margin by 14.9%pt YoY, down to 50.7%. The other income in 4Q23 decreased by KHR5.5bn YoY as the company earned KHR5.7bn in extraordinary income from net investment in sublease in 4Q22.


• In 2023, EBITDA decreased by KHR21.6bn or 24.0% YoY to KHR68.1 bn. PPAP experienced a significant decline in other income, decreasing by KHR11.0bn from KHR10.6bn in 2022 to a deficit of KHR404mn in 2023 due mainly to the termination of land subleasing contract with a major business partner. In addition, despite the revenue drop, operating costs rose by KHR3.8bn or 5.5% YoY, driven mainly by KHR1.9bn increase in impairment loss on trade and other receivables due to increasing number of businesses facing financial difficulties (for example, evidenced by the rise in NPLs in the banking and microfinance sector). As a result, EBITDA and EBIT margin narrowed by 12.3%pt and 14.9%pt, respectively.

Net profit declines 34.0% YoY with net profit margin squeezed by 15.5%pt

• In 4Q23, PPAP reported a net profit of KHR9.59 bn, marking a significant decline of 34.0% YoY. Net margin decreased by 15.5%pt YoY to 28.7%.


• In the whole last year, net profit plummeted 34.9% YoY to KHR38.6bn with net margin squeezed by 12.7%pt YoY to 27.2% mainly due to the drop in other income mentioned above. The last trailing twelve months (ttm, up to 4Q23) EPS dropped to KHR1,587 from KHR2,784 in 4Q22. With the closing share price of KHR13,420 on March 20, 2024, the 4Q23 ttm P/E ratio came to 7.19x.

Container throughputs

Container, general, and oil cargoes

Breakdown of revenue

Financial Ratios