Profit statements

Freightways makes half-year profit of $43.7 million

Information Management, Freight and Courier Freightways delivered a strong first half, despite challenges posed by Covid-19 lockdowns.

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Key financial data

(For the six months ended December 31 over the prior year.)

  • Net income – $43.7 million vs. $21.5 million up 104%
  • Revenue of $442.0 million vs. $410.3 million, up 8%
  • Expenses – $371.4 million vs. $362.8 million up 2.5%
  • Dividend – 18 cents against 15.5 cps up 16%

“While the economic climate remains uncertain, we are encouraged by the strength of express parcel business and the resilience of our information management businesses, as evidenced by our 1H22 results,” the company said in a statement to the market, noting that there had been a sharp decline in the first quarter.

It said the second quarter saw strong volume growth after the August and September shutdowns, reflecting growth in its consumer-to-consumer (B2C) business.

“Much of this growth is coming from profitable B2C delivery and this higher level of volume will be supported by new investment in facilities in Auckland and Christchurch,” he said, adding that Australia also had experienced hardware blockages, first in Victoria, but eventually across all states in one form or another.

“While this hampered the core information management business, it provided an opportunity for our thriving medical waste business which benefited from extremely strong customer demand.”

He said the company would continue to focus on revenue and profit growth, with plans in place to adapt to the tight labor market, disruption in international supplies and the ongoing pandemic.

He said his response to Covid-19 had brought him new business, which had translated into greater market share and strong corresponding financial gains.

Freightways said its investments in Big Chill as well as waste management are also paying off, with a view to future growth.

“The company will continue to review acquisition opportunities that are complementary to our existing operations and capabilities,” he said.