New Zealand’s leading express operator Freightways improved profits and revenues by highsingle-digit figures in the July – September first quarter of its 2011 business year thanks to
higher volumes.The company increased revenue by 9% to NZ$93 million (€53.81 million). Operating profits (EBITA)improved by 9% to $14.2 million (€8.22 million) while net profits were 19% higher at $8 million,which was the highest ever first quarter result since the IPO in 2003.
Freightways’ express package & business mail division again delivered good revenue growth of7%, double-digit EBITDA growth of 10% and EBITA growth of 11%, compared to the prior comparativeperiod. This strong performance is evidence of the strength of the Freightways business model andits market leading brands, the successful execution of a wide range of customer retention andgrowth strategies and the dedication and excellence of its team of people throughout New Zealand,the company stated.
Freightways’ information management division has also again performed strongly, with revenuegrowth of 14%, EBITDA growth of 5% and EBITA growth of 3%, compared to the prior comparativeperiod.
Looking ahead, Freightways said it expected to see improving market conditions this year. Whilethe company expects it will benefit from this improvement, it will also complement any naturalgrowth by continuing to actively manage its cost base, by striving to further improve its servicequality and by continuing to execute growth initiatives wherever possible.
“The express package & business mail division remains reliant on growth amongst its existingcustomer base to sustain its year-on-year performance improvement, albeit the market share gainsand pricing improvement achieved during 2011 and pricing initiatives implemented to date in 2012will contribute positively to its overall performance. Freightways has consistently demonstratedits ability to compete successfully in an openly competitive environment and it will continue to doso. Our express package brands are among the most recognised in New Zealand, our people have adepth of experience second to none and our service culture that was so clearly demonstrated duringthe tough times last financial year in Christchurch and Queensland will continue to stand us apartfrom our competitors,” it stated.
Freightways added that it has strengthened its earnings profile in recent years by diversifyingits activities both geographically and deeper into the information management market. “Freightwayswill continue to seek and develop growth opportunities to support this strategy and will alsoexplore other opportunities that complement its core capabilities.”
