Mark Troughear. Photo: Supplied
Information management and courier company Freightways Group has reported a higher profit, with growth in the Australian business offsetting weakness in New Zealand.
The company said last year's purchase of Australia's Allied Express for $178 million helped improve the overall group result.
Key numbers for the year ended June compared to a year ago:
- net profit $75.3m vs $70.2m
- revenue $1.12b vs $873.1m
- underlying profit $145.3m vs $130.2m
- FY dividend 37 cents a share (unchanged).
Chief executive Mark Troughear said its strategy of using current infrastructure to develop new business was working.
"We are confident our investments will form a powerful, collective catalyst for sustained growth in FY24 (financial year 2024) and beyond."
The New Zealand businesses grappled with the challenges of a tight labour market, high labour costs, inflationary pressures and bad weather, with its courier and long-haul freight facing much higher operating costs and disruptions along with subdued growth.
The company was cautious about a tougher economy in the coming year, but it had secured new customers which would soften the impact.
However, Troughear said Freightways saw potential to increase revenue and profits on both sides of the Tasman in the longer term.
It would look to contain costs and raise prices where possible for its courier business, while the lease of a new freight plane would strengthen the overall network, as would the upgrade of its Big Chill refrigerated trucks, and new investment in Australia.
"With the addition of Allied Express to the group, Australia has become a more substantial portion of our business and it is likely that this portion of our revenue and earnings will continue to grow at a greater rate in the near term," Troughear said.
Freightways has applied to list on the Australian Securities Exchange (ASX), though the primary listing would remain on the NZX Main Board, with a listing expected in mid-September.