Imperial Logistics has reported revenue of *ZAR52.2bn in year ended June 30, 2021, a 12.6% growth from 2020. Operating expenses increased 11.7%, and the company saw a 60.1% increase in operating profit, up to ZAR2.3bn. The increases are mainly attributed to the impacts to all business segments from the pandemic the year prior.
Imperial Logistics’ Market Access segment saw a 29.7% increase in revenue, alongside an EBITDA increase of 12.2% compared to the previous financial year. This was supported by successful integration of acquisitions, a strong recovery in most businesses, particularly in consumer, and good contract gains.
The company’s Logistics Africa segment also saw a small rise in revenue, up 1.5%. This was attributable to an increase in Contract Logistics revenues (+3.3%) and Freight (+0.8%). Bans on alcohol and tobacco sales (which account for approximately 12% of the segment’s revenue) together with cross-border travel restrictions negatively impacted volumes, but the company saw new business gains in other sectors and contract renewal rates at approximately 79.0%. EBITDA increased by 16.8% due to improved fleet utilisation and efficient cost management.
The Logistics International segment’s revenue increased by 16.8% (approx. 9.6% without FX effects), largely due to an improvement in the Freight business (+20.1%). Imperial’s express palletised distribution business (Palletways) saw higher volumes, with its air and ocean freight businesses also contributing to the positive results. However, the company saw difficulty in its UK business which it attributed to Brexit and the ongoing UK driver shortage. In Contract Logistics, revenue increased by 12.1%, with automotive production improving despite a global shortage of semiconductors. EBITDA for the segment was up 36.7% (approx. 23.9% excluding FX effects) as a result of effective cost management.
“We continue to record significant progress in our strategic journey to transform from a portfolio of regional businesses to an integrated end-to-end market access and logistics business” explains Imperial Logistics Group CEO, Mohammed Akoojee. “Many of our markets continue to face uncertainty and volatility, being in various levels of lockdown and restrictions. While some of these restrictions are easing, we anticipate the impact of the COVID-19 pandemic and the ensuing uncertainty to continue affecting our operations and performance in the short-term.”
Source: Imperial Logistics
*ZAR = €0.054 / ZAR = $0.073
