Freightways chief executive Mark Troughear. Photo: Supplied / Freightways
Courier and information management company Freightways reported a slight drop in profit as it faced higher costs, although revenue increased despite the tough economic environment.
Key numbers for the 12 months ended June compared with a year ago:
- Net profit $70.9m vs $75.3m
- Revenue $1.21b vs $1.12b
- Operating profit $136.4m vs $134m
- Interest expense $1m vs $0.14m
- Full year dividend unchanged 37 cents per share
The company, which owned brands including New Zealand Couriers, Post Haste and Big Chill Distribution, said tough economic conditions meant domestic customer volumes were lower, although it was mitigated to some extent by new business gains.
New Zealand courier volumes fell about 5 percent in a sign of the slowing economy, while domestic refrigerated customer volumes dropped about 8 percent.
The company owns New Zealand Couriers. Photo: Supplied / Freightways
The company said its lower bottom line profit was largely down to higher interest expenses.
Chief executive Mark Troughear credited Freightways' "resilience" to its diversification, notably the A$160 million takeover of Australian courier business Allied Express.
"Our investment in Allied Express has delivered on our business case expectations, and with our reliability and reputation leading to market gains in the local express package (courier) businesses, we are well-placed to go the extra mile as both markets recover," Troughear said.
Looking ahead, Freightways was hopeful the worst of the economic conditions were improving, supported by lower interest rates by the second half of the year.