Freightways reports 5.4% increase in full year revenue

New Zealand based express package provider, Freightways, has reported a 5.4% year-over-year increase in revenue.

The company reported revenues of NZ$505m for the year ended 30 June 2016, which has enabled Freightways to deliver net profit after tax (NPAT) of NZ$54.4m, when excluding non-recurring items, up 8.0% on the previous year.

Freightways’ Managing Director, Dean Bracewell, explained that the positive features of the markets in which Freightways operates, the resilience of its business models to adapt to changing market circumstances and the execution of growth strategies, have contributed to this result. Both the express package & business mail division and the information management division posted positive results.

The express package & business mail division, which operates a multi-brand strategy in the domestic market through New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express, Stuck, Pass The Parcel, DX Mail and Dataprint, reported operating revenue of NZ$370m for the year, 2.9% higher than in 2015. EBITA of NZ$62m was consistent with the previous year.

The information management division, which now generates more than 30% of Freightways’ earnings, reported operating revenue for the year of NZ$137m – up 12.5% on the 2015 result, while EBITA of NZ$28m was 18.0% higher. Bracewell stated that decisions made during the year to contribute to the long-term performance of this division included: consolidating the established information management businesses under a common brand – The Information Management Group (TIMG), and investing around NZ$2.5m during 2017 to complete the relocation of three Sydney-based information management facilities into a single purpose-built facility.

Looking forward, Bracewell has said of the Information Management Division, “[It] may perform slightly below the prior comparative period, due to the strong year just completed, which included some large one-off project work and also due to the costs of establishing the new purpose-built Sydney facility during 2017, offsetting the otherwise positive trading performance expected of this division.”

Source: Freightways