StoneX Group has announced in its quarterly financial reports that it has posted profits of $431.5 million for the third quarter of 2021. This is an increase of 34% when compared to the third quarter of 2020. The increase in profit comes after StoneX Group showed an increase in revenue that grew faster than expenses over the same period.
Total revenue for the company for the third quarter of 2021 was $10.192 billion. This was an increase of 24% from the $8.234 billion for the third quarter of 2020. The cost of sales of physical commodities for these periods was at $9.76 billion in 2021 and $7.92 billion in 2020. This is an increase of 23%. While the percentage increases are relatively close, the increase in real terms is slightly wider than the impression this gives.
With revenue showing an increase of $1.958 billion between 2020 and 2021, expenses showed an increase of $1.84 billion. It means that the single percentage point equates to a $118 million disparity between the two figures.
This is shown in the profits for the third quarter, with 2020 posting profits of $322.6 million and 2021 posting profits of $431.5 million. This is why a 24% increase in revenue and a 23% increase in expenses equates to a 34% increase in profits.