The Covid-19 pandemic may have hurt many companies but for GKE Corporation, a local warehousing and logistics service provider, as well as supplier of ready mix concrete has enjoyed a lift of sorts from disruptions in the business environment.
Instead of announcing write-offs and profit warnings, GKE recently reported record earnings of $6.52 million for its 1HFY2021 ended Nov 30, 2020. This was an almost 3.5 times jump from the earnings of $1.8 million recorded in 1HFY2020. In the same period, revenue rose 9.2% to $60 million from $54.9 million.
GKE says the better performance was due to higher demand for warehousing space as customers stockpile to prevent supply-chain disruptions, enabling its warehouse to command higher rates. Meanwhile, its RMC operations in China, following an initial hiccup in 2020 because of the pandemic lockdown, is also back in play, seeing stronger demand and fetching higher selling prices.