Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Freightways first-half profit rises 3%

Freightways first-half profit rises 3% on growth in courier, data management units

By Suze Metherell

Feb. 24 (BusinessDesk) – Freightways said profit grew 3 percent in the first half as New Zealand’s largest listed courier and data management company lifted earnings in both its business units.

Net profit was $21.7 million in the six months ended Dec. 31, a record first-half result, from $21 million for the same period a year earlier, which including a one-time $1 million gain, the company said in a statement. Sales grew 6 percent to $218 million, while earnings before interest, tax, depreciation and amortisation was up 6 percent to $42 million

The multi brand Auckland-based company, whose businesses include New Zealand Couriers, Post Haste Couriers and Fieldair, has been expanding its information management interests. Last year it acquired kiwi document shredding companies Docushred and Document Destruction Services, as well as Advance Security Destruction Services and Document & Data Storage Management in Australia.

“Four acquisitions were completed during the latter stages of the half year that add scale to our existing operations and significantly expand our customer base,” Freightways said in a statement. “All these acquisitions have migrated successfully and are at this early stage performing to expectations.”

The shares rose 1.3 percent to $4.63 and have climbed 3.2 percent in the past 12 months. The stock is rated a ‘hold’ based on the consensus of six analysts polled by Reuters, with a median price target of $4.38.

In guidance given for the year ahead the company reiterated that growth will continue but gave no specific detail other than the expectation that capital expenditure will be approximately $16 million to support that growth. First-half capex was $9 million.

Its data management services operating revenue, which makes up 23 percent of Freightways’ income, grew 3 percent to $51 million in the first half, with growth in the New Zealand portion of the sector up 13 percent, and in Australia up 9 percent. EBITDA climbed 5 percent to $12 million.

The express package and business mail unit’s operating revenue was up 7 percent to $168 million, with EBITDA up 6 percent to $31 million.

The company said its business mail operator DX Mail was down on the previous year, as it continued to be challenged by ongoing decline in the use of physical letters and postage. It didn’t give details.

Freightways will pay an interim dividend of 10 cents a share, up from 9 cents a year earlier. This represents a pay out of about $15.4 million, compared to $13.9 million the previous year. The record date is March 21, and will be paid out on April. 7.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news