CEO of Freightways Mark Troughear. Photo: Supplied
Courier and information management company Freightways has countered economic weakness on both sides of the Tasman with increased revenue and profits.
Key numbers for the six months ended December compared with a year ago:
- Net profit $44.7m vs $40.9m
- Revenue $662.1m vs $620.7m
- Interim dividend 19 cps vs 18 cps
The company said its various businesses, which include New Zealand Couriers, Post Haste and Big Chill Distribution, performed strongly and gained market share despite challenging conditions.
It said volumes in its express package eased but rose in the business mail division, with gains in market share through efficiencies, and earnings benefited from higher prices.
The Big Chill refrigerated food business managed a slight lift in earnings despite losing supermarket operator Woolworths as a customer.
Its Australian business, Allied Express, showed the strongest growth in volumes, particularly online shopping traffic, using automation and tight cost control to improve earnings.
Freightways said its information management and waste renewal division posted an 11 percent rise in revenue with a slight improvement in New Zealand document storage, and a solid lift in medical waste revenue.
Hard grind ahead
Looking ahead, the company was wary.
"Whilst interest rates are beginning to fall in New Zealand and business confidence is slowly returning, we remain cautious about any rapid recovery and to a lesser extent Australia."
It said getting growth in the next six months in New Zealand would be a "hard grind".
However, it was looking at possible bolt on acquisitions in Australia.
It would also carry on with upgrading its aircraft freighters to an all Boeing 737-800 fleet, which were more fuel efficient and had a greater capacity, while it watched the situation with its aviation partner, the financially troubled Airwork.
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