- NZ’s logistics and freight industry saw COVID-19 impact due to delivery and shipping delays.
- Mainfreight delivered a strong performance across its all five regions in its half-year results.
- Freightways issued share rights under its new LTI scheme.
New Zealand’s freight and logistics market is a big industry and is likely to see a CAGR of 2.53% during the projected period of 2021-2024, propelled by growth in population. However, the lack of drivers has slowed down the market.
The COVID-19 pandemic has put the industry under huge pressure by straining supply chains, increasing transport costs and disturbing trade.
Amid this backdrop, let’s see how these 3 freight and logistic companies are doing.
Image source: © 2021 Kalkine Media®, Data source- Refinitiv
Mainfreight Limited (NZX:MFT)
Freight forwarding company Mainfreight revealed that its half-year performance for the period ended 30 September 2021 had met its expectations. For the quarter, MFT reported a 41.4% increase in revenue to $2.274 billion and a 79.4% increase in NPAT to $130.81 million.
Despite supply chain bottlenecks and continued shutdown interruptions across markets, the Group's five regions all contributed significantly to the increased performance.
On 24 December, MFT ended the trading session flat at $91.
Move Logistics Group Limited (NZX:MOV)
Freight and warehousing provider Move Logistics saw a solid contribution from warehousing and got good support from its overseas operations in FY21. The Group undertook a capital raising of $40 million and did not declare a dividend for the period.
Although volumes elsewhere are meeting or exceeding estimates, the second half of this year is expected to be impacted by the Auckland COVID-19 shutdown. In the coming months, the Group's freight segment is expected to achieve significant development.
On 24 December, MOV ended the trading session flat at $1.65.
Freightways Limited (NZX:FRE)
NZX-listed express package, IT and business mail service provider, Freightways, saw robust growth in FY21. The Group reported revenue of over $800 million for the period, up by 27% on previous year and over 30% growth in EBITDA numbers.
The Group also implemented a new long-term incentive (LTI) scheme in July 2020 to better promote employee retention and long-term performance. The scheme involves share rights being provided to senior officials, with vesting revealed at the end of a 3-year vesting period.
On 24 December, FRE ended the trading session at $12.8, down 0.54% from its previous close.
Supply chain, labor costs, high freight rates and demand-supply imbalances are likely to be some of the challenges that the industry is facing.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)