New Zealand express package firm Freightways today reported a record first-quarter performancein the three months to 30 September, thanks to increased activity from existing customers,
market-share gains and pricing improvements.The results were inflated by including an extra five trading days compared to the priorcomparative period due to a re-alignment of the company’s accounting calendar, but even excludingthe additional days the firm reported double-digit increases in operating revenues and profits.
Inclusive of the revenue and operating profit generated from these 5 additional trading days,revenue totalled $122 million, a 17% increase over the prior comparative period (pcp). Ebitda of$24 million and Ebita of $21 million were 27% and 31% above the pcp, respectively.
Excluding the revenue and operating profit generated from the five additional trading days,revenue totalled $115 million, a 10.1% increase. Ebitda of $22 million and Ebita of $19 millionwere 16.5% and 18.5% above the pcp, respectively.
The group’s results were dominated by those of its largest division, Express package andbusiness mail. Excluding the revenue and operating profit generated from the five additionaltrading days, the division’s revenue of $88 million was 10.3% above the pcp. Ebitda of $16.4million and Ebita of $14.8 million were 21.6% and 22.7% above the pcp, respectively.
The company said: “Increased activity from existing customers throughout all geographies andindustries in New Zealand has been further assisted by quality market share gains and some pricingimprovement. New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, Pass The Parcel,SUB60, Kiwi Express, Stuck and Security Express, have all delivered record results.”
It said the strategy to extend DX Mail’s suite of postal services, including through theacquisition of Dataprint, was also proving successful, with each of these businesses performingwell ahead of the pcp.
The group’s Information Management division also performed well.
Commenting on the group’s results, managing director Dean Bracewell, said:
“Within our express package businesses we remain encouraged by the increased activity amongstour existing customer base, both from Business to Business (B2B) and Business to Consumer (B2C)deliveries. Our smaller DX Mail business will continue to operate in a challenging market, despitewhich it is expected to continue to attract customer demand, particularly for its overnight streetdelivery service.”
He said Freightways would continue to seek out and develop strategic growth opportunities, “including acquisitions and alliances that complement its core capabilities”.
