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Freight, logistics and waste management company Freightways has posted a solid result as it cut down debt, improved margins and increased market share.
Key numbers for the 12 months ended June compared with a year ago:
- net profit $80.1m vs $70.9m
- revenue $1.29b vs $1.21b
- net interest and finance costs $34.1m vs $35.1m
- final dividend 21 cents per share vs 19 cps
The company, which owns brands including NZ Couriers, Post Haste and Big Chill Distribution, said the result came in spite of weak economic conditions.
Freightways' lower debt level also reduced interest costs and contributed to overall profitability.
In its express package and business mail division, revenue increased 12 percent and margins improved 60 basis points over the past year.
In New Zealand, express package volumes increased 0.4 percent in the year, while in Australia, it rose nearly 12 percent, partly reflecting the better economy across the Tasman.
More than a third of the company's revenue and profits came from Australia, driven by its 2022 acquisition of Allied Express.
Freightways said across the group, despite sector-wide declines, the company increased market share and maintained pricing that reflected cost increases.
The company did not provide guidance, but said in the near term, it would be focused on margin improvement while maintaining and improving service quality.
Freightways expects longer-term growth to come from oversized freight, chilled deliveries, high-value waste services, and third-party logistics for e-commerce.
Investment house Forsyth Barr's head of research, Andy Bowley, said Freightways' results were "solid" but came in "marginally below expectations".
But he said the final dividend of 21 cents per share was a "welcome surprise" compared to their 19 cents per share estimate.
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