New Zealand’s leading domestic express operator Freightways improved profits in the year endingJune 30, 2011 thanks to a recovery in its core express business and higher information management
profits.The company increased its full-year consolidated revenues by 7% to NZ$353 million (€204million). Operating profits (EBITA, excluding non-recurring expenses) rose 5% to $57 million (€33million) and net profits improved by 7% to $31 million (€18 million).
Managing director Dean Bracewell said highlights included the express package & businessmail division’s double-digit earnings growth in the second and fourth quarters, the outstandingperformance of the information management division and its rollout throughout Australia, as well asthe company’s overall resilience despite the challenges of nature and the economy.
He added that while several Freightways’ businesses were affected by the Christchurchearthquakes and the Queensland floods, no staff were seriously injured and disruption to customerswas kept to a minimum. Reduced activity and revenue following the earthquake resulted in anestimated $1.5 million loss of operating earnings.
The core express package and business mail division, which contributes almost 80% of grouprevenue and earnings from its brands (New Zealand Couriers, Post Haste Couriers, Castle Parcels,NOW Couriers, SUB60, Security Express, Kiwi Express and DX Mail) increased volumes, gained marketshare and increased prices modestly. The express division’s operating revenue rose 5% to $278million (€161 million) and operating profits (EBITA) improved 4% to $45 million (€26 million).
“During the year a small postal service provider was acquired, parcel products were marketed forthe first time through national retail chains, growth in newly-established international servicesoutpaced domestic growth and the brands of ‘Pass the Parcel’ and ‘Stuck’, established in 2010,continued to gain increasing market support,” commented Bracewell.
The company plans to spend about $4 million in the coming year in the refurbishment of theAuckland depot to accommodate the relocation of NOW Couriers, currently based off-site. Costsavings resulting from this move are expected to be achieved in the 2013 financial year.
The high-margin information management division, now firmly established on both sides of theTasman, reported a 15% rise in operating revenue to $76 million and a 13% increase in operatingprofits (EBITDA) to $17 million. The division operates Online Security Services, Archive Security,Document Destruction Services and Data Security Services locally and DataBank, Archive Security andShred-X across in Australia.
Looking ahead, Bracewell said Freightways expects to see its market segments “continue togradually improve throughout 2012.” In recent years Freightways has strengthened its earningsprofile by diversifying its activities both geographically and deeper into the informationmanagement market. “We will continue to seek and develop growth opportunities to support thisstrategy and also explore other opportunities that complement our core capabilities,” he said.
