Source: Radio New Zealand
The company saw its bottom line profit increase by 17 percent. Supplied
Courier and information management company Freightways posted a strong first-half result as economic conditions improve in New Zealand, while Australia was steady.
Key numbers for the six months ended December compared with a year ago:
- Net profit $52.5m vs $44.7m
- Revenue $718.2m vs $662.1m
- Operating earnings $96.5m vs $86.0m
- Interim dividend 21 cents per share vs 19 cps
Freightways saw its bottom line profit increase by 17 percent, while revenue rose 9 percent. It said cash generation was strong and strengthened its balance sheet, while reducing net debt by 6.7 percent.
The company is seen as a bellwether stock, and owns brands including NZ Couriers, Post Haste, Big Chill Distribution and TIMG.
Its express package and business mail division saw improved earnings and margin growth.
“Performance was supported by same-customer volume growth, net market share gains and pricing actions implemented at the start of the financial year,” the company said.
Its information management and waste renewal division, which includes TIMG, saw a “mixed performance”, Freightways said.
“Revenue was broadly flat for the half year, while EBITA (operating earnings) grew modestly, reflecting lower digitisation activity and the exit of unprofitable Product Destruction revenue streams,” it said.
Freightways said cost inflation remained moderate, and its cost base had “stabilised”, particularly labour costs, amid cooling wage inflation.
“We expect a steady improvement in same-customer volumes in the second half of FY26, particularly in New Zealand, driven by a level of economic recovery.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
