Freightways' full year profit plummeted as delivery activity slowed to a crawl during lockdown.
Photo: 123RF
The courier and data management company's net profit was down 25 percent to $47.4 million for the year ended June, as courier volumes fell by 65 percent when the country went into lockdown.
Revenue rose by three percent to $630m, as activity in its secure destruction and refrigerated transport business picked up. The company had nearly $10m in one-off items as it wrote down the value of assets.
Freightways brands include New Zealand Couriers and Post Haste Couriers, and it said it showed strong resilience during the pandemic.
"Pleasingly, following the initial drop in activity during lockdowns, our position has steadily improved through the lifting of restrictions," it said in a statement to the stock exchange.
There was a dramatic decline in volumes in its express package business when the country went into lockdown.
"Express Package volumes initially dropped by 65 percent while Information Management activity in New Zealand ground to a halt, leaving us with just storage revenue."
Freightways said volumes have since rebounded to levels marginally higher then the previous year.
"We are encouraged by strong early trading results consistently achieved in the last few months, however the economic backdrop to FY21 can best be described as uncertain for all business units in Australia and New Zealand," the company said.
As a result, the company has scrapped paying a final dividend.
