Sales boost lifts Freightways profit

  • 17/08/2015
Sales boost lifts Freightways profit

By Suze Metherell

Logistics and courier business Freightways has lifted annual profit by 4 percent, on increased sales from express packages, business mail and information management.

Profit rose to $43.3 million in the 12 months ended June 30, from $41.7m a year earlier, the Auckland-based company said.

Operating revenue increased 11 percent to $749.5m. The directors declared a final dividend of 12.5 cents per share, up from 11.25 cents per share a year earlier.

The express package and business mail division, which includes New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi Express, Stuck, Pass The Parcel, DX Mail and Dataprint, lifted operating revenue 8 percent to $360m in the period. It reported earnings before interest, tax, depreciation and amortisation rose 13 percent to $68m.

Its DX Mail operations grew market share after New Zealand Post's move to reduce daily mail deliveries to three days a week, Freightways said.

"DX Mail has increased its postie delivery fleet in response to this positive market demand," it said. "DX Mail's growth has come from customers who still require overnight delivery for their standard priced letters."

Its information management system, which operates units on both sides of the Tasman, lifted operating revenue 18 percent to $122m.

In the coming year, Freightways expects the express package market to expand, although not at the same rate as it has experienced this year.

It expects to spend $20m in capital expenditure to support growth and development.

Freightways shares fell 0.9 percent to $5.50 and have fallen some 4.3 percent since the start of the year.