Information management, freight and courier business Freightways has reported a strong first half, despite challenges posed Covid-19 lockdowns.
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Key financial data
(For six months ended 31 December versus year earlier.)
- Net profit - $43.7m vs $21.5m up 104 percent
- Revenue $442.0m vs $410.3m up 8 percent
- Expenses - $371.4m vs $362.8m up 2.5 percent
- Dividend - 18 cents vs 15.5 cps up 16 percent
"Whilst the economic climate remains uncertain, we are encouraged by the strong trade in express package and the resilience of our information management businesses, as demonstrated in our results in HY22," the company said in a statement to the market, noting there had been a significant downturn in the first quarter.
It said the second quarter delivered strong volume growth after the lockdowns of August and September, reflecting growth in its business to consumer business (B2C).
"Much of this growth was from profitable delivery of B2C and this higher level of volume will be supported by further investment in facilities in Auckland and Christchurch," it said, adding Australia had also experienced material lockdowns, initially in Victoria, but then eventually across all states in some form.
"While this hindered core information management activity, it provided an opportunity for our burgeoning medical waste business which benefited from extremely strong customer demand."
It said the company would continue to focus on revenue and earnings growth, with plans in place to adapt to the tight labour market, the disruption of international supplies and the ongoing pandemic.
It said its Covid-19 response had won it new business, which had translated into a larger share of the market and strong financial gains to match.
Freightways said its investments into Big Chill as well as waste management were also paying off, with an eye to further growth.
"The company will continue to consider acquisition opportunities that are complementary to our existing operations and capabilities," it said.