Freightways Ltd, the New Zealand express parcel group, has announced record revenue and profitfigures for the half year ending 31 December 2005. Growth was driven by its core express businesses
along with newly-acquired Kiwi Express and the DX Mail postal service.The group increased half-year consolidated operating revenue by 11% to NZ$130 million (€73.6million), and earnings before interest, tax and amortisation (EBITA) rose 10% to $29 million.Consolidated net profit after tax was up 20% to $14 million for the half year.
Freightways managing director Dean Bracewell said that the figures “reflect another tradingperiod for Freightways where all businesses have delivered improved year-on-year performance.” The express package businesses again contributed the majority of revenue and earnings, withhigher results from all brands – New Zealand Couriers, Post Haste Couriers, Castle Parcels, SUB60,and Security Express.
“This performance emphasizes the underlying strength of Freightways’ well recognized andstrongly positioned brands in the marketplace. It also demonstrates the success with whichFreightways has implemented its growth strategies in an environment where existing customers havenot grown their express package deliveries at the same rate as in recent years,” he commented.
Contributing to the express package revenue growth during this period has been sales revenueachieved by Kiwi Express, a well established point-to-point courier business operating in Aucklandand Wellington, acquired by Freightways in October 2005. This acquisition has been very successfuland the Kiwi Express brand has been maintained, Freightways said. In the area of business mail, DXMail delivered strong revenue growth, with demand for its broad suite of letter delivery servicescontinuing to grow.
Bracewell said that while the growth opportunities that exist in all three of Freightways’ coremarkets will “ continue to be aggressively yet pragmatically pursued, it is expected that in thenear term we will continue to see lower growth from our existing customers than in recent years andthe business environment will remain challenging. Our growth strategies are designed to lessen theimpact of this slower growth, as has been evidenced by this half year result.”
