Freightways Group Limited Analysis

Overview

Freightways is an operator of express logistics businesses in the express package, business mail, information management and waste renewal industries in both New Zealand and Australia. Across its brands Freightways handles over 100 million items every year utilising its core capabilities of ‘picking up, processing and delivering’ efficiently and at scale.

The company’s origins go back to 1964 in New Zealand, with the incorporation of New Zealand Couriers (an express package business), and 2007 in Australia, with the acquisition of Databank (an information management business). It has achieved growth on both sides of the Tasman both organically and through acquisition opportunities.

Freightways’ securities were listed in New Zealand in 2003.

Performance

The following information was extracted from Freightways Group Limited's full year results, released on 19 August 2024:

Freightways’ results resilient despite tough economic environment

Freightways (NZX: FRW) has today announced its annual result reporting net profit after tax of $70.9 million for the FY24 year, despite tough economic conditions on both sides of the Tasman.

Overall, operating revenue showed good growth increasing by 7.8 per cent from last year and earnings before interest and tax were steady, increasing 1.8 per cent.

Compared to FY23, net profit after tax reduced by 5.8 per cent - principally due to a higher interest expense. The dividend for the full year was kept stable at 37 cents per share.

CEO Mark Troughear credits the resilience to Freightways’ diversification and investment across complementary revenue streams, as well as not being solely reliant on New Zealand’s economy.

“Our investment in Allied Express has delivered on our business case expectations, and with our reliability and reputation leading to market gains in the local Express Package (courier) businesses, we are well placed to go the extra mile as both markets recover.”

Freightways FY24 results by the numbers:

• FY24 profit: $70.9m, and FY24 EBITA: $149m
• FY24 increase in overall operating revenue: 7.8%
• FY24 decrease in net profit: 5.8%
• FY24 increase in earning before interest and tax: 1.8%
• FY24 dividend stable at 37 cents per share