New Zealand Post has announced a 9% rise in half-year profits driven by ongoing diversification andexpress parcels growth. Meanwhile, local rival Freightways has strengthened its position with a
regional acquisition.NZ Post announced net profit of NZD 52.9 million (EUR 27.4 million) in the half year to 31December 2007, 9% higher than the NZD 48.4 million (EUR 25 million) recorded in the previous halfyear to 30 June 2007. Revenues rose to NZD 663.8 million from NZD 612.5 million. KiwiBankcontributed NZD 22.7 million (EUR 11.7 million) to the half year result of NZ Post.
Chief Executive John Allen said that the result shows the benefits of NZ Post’sdiversification strategy, with positive performances by Datamail, Postal Services and ExpressCouriers. Within the second half of 2007, Express Couriers, the joint venture between DHL and NZPost, bought the domestic road transport firm Roadstar Transport to broaden its product portfolio.
Meanwhile, New Zealand express group Freightways announced the acquisition of the Aucklandcompany NOW Couriers for NZD 11 million (EUR 5.7 million) with effect from 1 April. NOW Couriersoperates a package delivery business and provides national overnight service through Freightways’Castle Parcels and Post Haste brands. It has 40 contracted owner drivers.
Dean Bracewell, Managing Director Freightways, said the acquisition is expected to beimmediately earnings per share (EPS) positive, and is consistent with the group’s strategy todevelop growth opportunities that complement its existing operations.
