Market Share Gains Drive Freightways Net Profit 4.6%
Freightways announced its results for the year June. Photo / Supplied
Express parcel company Freightways increased its net profit 4.8% to $ 49.6 million in June, thanks to market share gains and new customers.
The company’s revenue jumped 27% to $ 800.5 million.
The company declared an annual dividend of 18 cents per share. Freightways did not pay a dividend last year due to disruptions related to the Covid-19 pandemic.
The company said growth was seen in business-to-business and business-to-business deliveries.
For most of the year, volumes were consistently higher than the previous year.
Freightways’ Big Chill had reported a 14% increase in revenue, thanks to the opening of a new third-party temperature-controlled logistics warehouse and market share gains.
This enabled better use and therefore higher margins, “a healthy improvement which strengthens our confidence in the potential of the company”.
Freightways international air freight service to New South Wales and Victoria Australia generated revenue of $ 8.8 million.
Express parcel brands such as New Zealand Couriers and Post Haste have moved from business-to-business courier companies to brands that now include cost-effective business-to-consumer deliveries, Freightways said.
In Australia, Freightways’ medical waste business reported sales of $ 16 million, up from $ 3 million when it was acquired four years ago.