Freightways has reported a 6% rise in annual net profit despite weaker growth in the second half of the year as the firm faced challenges in its main express package and mail business
Underlying net profit rose to a record $38 million for the year ended 30 June, excluding $2 million of non-recurring income.
For the first time, revenue topped $400 million - 6% higher than the previous year.
Freightways managing director Dean Bracewell said on Monday the courier company was facing new challenges.
"We have seen stronger growth in business-to-consumer courier deliveries, whereas in a business-to-business delivery you'll be delivering multiple items to every location in that street so it's a low-density delivery, which means it's a lower-margin delivery.
"So that does put challenges on the business - but that's just a changing dynamic within the market," he said.
Meanwhile, pretax earnings at its largest business, Express Package and Business Mail, rose 1% to $49 million, lagging behind a 6% increase in sales.
AAP reports the company said business mail operations also reflected a decline in letter volumes through "digital substitution".
Freightways said its response had been to boost its network of DX Mail posties to win a larger share of street mail deliveries and the acquisition of Dataprint which offers both digital and physical delivery to customers.
It has also established a business process outsourcing service to "assist in transitioning customers to a digital workflow environment".
Freightways' information management business lifted operating revenue by 8% to $100 million while pretax earnings excluding one-time items rose 13% to $19 million.
In the year ahead, the company expects the division to record strong volume growth though it expects "slightly lower" revenue from the sale of recycled paper after the closure of a paper mill in Queensland.
