A pretty crafty announcement this one. Sugar coated to 'dress...

A pretty crafty announcement this one. Sugar coated to 'dress up' a NPAT downgrade v comps.

I can only see around 8c in eps for 1HFY25 v 9.88c for the corresponding period.,,,that's a material miss for mine.
And have a look at the profit guidance issued this time last year - quote -
"CTI Logistics Limited advises that the profit before tax for the half year to 31 December 2023 is expected to be approximately 30% lower when compared to the previous corresponding period for the half year to 31 December 2022."

Is there a negative trend developing here?
1HFY23 NPAT $10.6m
1HFY24 NPAT $$7.6m
1HFY24 NPAT $6.5m (my estimate)

We will have to come home with a wet sail in 2H25 to get to anything approximating the FY24 NPAT

Is this possible...lets examine the two expenditure areas they mentioned in the 1HFY25 profit guidance.
.
D&A is up by S2.6m in 1H...this is probably made up of a good percentage of what we all know is rent, until some bright spark accountant decided to change the accounting rules - but for mine, rent is rent...a full on expense - unlikely to fall in 2H by much (if any)
Interest is up by $1m in 1H...again unlikely to reduce unless they pay off some of the loan...interest rates have not come down.

I really think we will be struggling to get to the FY24 NPAT...let alone a small increase to account for inflation.
Maybe this is a transition year as they move the big chunks into place to accommodate greater revenue going forward.
Hope so, but I won't be adding any shares on the basis of this announcement. I suspect we are fully priced for the moment.