Thursday 31st October 2013 1 Comment
|Text too small?|
Freightways, New Zealand's largest listed courier and data management company, said earnings grew 7 percent in its first quarter, driven by increased sales from express packages, putting it on track for full-year profit growth.
Profit rose to $9.79 million in the three months ended Sept. 30, from $9.19 million a year earlier, the Auckland-based company said in a statement made in conjunction with its annual shareholders' meeting. Sales climbed 4 percent to $104.69 million.
"Our overall first-quarter performance is positive and, while still early in the financial year, it underpins our expectation of a full-year result ahead of the prior year," managing director Dean Bracewell said. Earnings growth would be helped by the expected contribution from newly-acquired information management businesses.
Recent acquisitions are the business and assets of Brisbane-based Document & Data Storage Management and Dunedin-based Document Destruction Services, effective Oct. 1, for a total cost of about $4.5 million. They are expected to contribute earnings before interest, tax, depreciation and amortisation of $800,000 in the first full 12 months after integration.
Sales at the company's express package and business mail division rose 5 percent to $80 million and EBITDA rose 2 percent to $13.5 million. That reflected market share gains and increased demand from existing customers of its retail businesses.
Its DX Mail business recorded a year-on-year decline, reflecting the changing business mix, with a pickup from its Dataprint mailhouse and street delivery volumes not yet enough to offset a slide in 'box-to-box' letter volumes and lower international package volumes, the company said.
Information management recorded revenue of $25 million, unchanged from a year earlier, while EBITDA rose 1 percent to $5.9 million, with results partly reflecting the impact of bringing Australian revenue home into a stronger New Zealand dollar.
The shares were unchanged at $4.30 and have edged up 1.2 percent this year.
Asians, men more confident in financial markets than Pacific Islanders, women and poor people
June trade surplus $365M, higher than expected
Govt opts for sweeping review of 'underperforming' RMA
AFT gains Australian registration for intravenous Maxigesic
24th July 2019 Morning Report
Should Fletcher Building persist with Australia?
NZD weaker as greenback gains on news US-China trade talks to recommence
MARKET CLOSE: NZ shares extend gain as Mainfreight, A2 hit new highs
StretchSense directors appoint administrators
NZ dollar falls on news RBNZ is looking at "unconventional" policy