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Highlights
- New Zealand has a large and diverse transportation sector.
- MOVe Logistics reported a 6% rise in revenue in FY21 but its international business faced supply chain issues.
- Mainfreight witnessed an impressive FY21 with many projects in line.
The transportation sector of any country offers services to move goods from one place to another. The sector includes various industries including airlines, road, rail, air freight and logistics.
The transport sector plays a significant role in the overall productivity and sustainable development of a country’s economy. New Zealand boasts a big and distinct transport sector, which uses modern energy-efficient technologies.
Let’s have a look at how these 3 transportation stocks are doing.
Image source: © 2021 Kalkine Media New Zealand Ltd, Data source- EODHD/Others
MOVe Logistics Group Limited (NZX:MOV)
MOVe Logistics, New Zealand's freight and logistics company, published its annual report for FY21 on 30 September 2021.
The Group reported a 6% increase in revenue to $353.2 million and a 7% increase in EBITDA to $61.3 million in FY21.
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With the exception of the international business which was affected by supply chain challenges and COVID-19 limitations, four of MOVe's five divisions produced increased sales and EBITDA. The Group anticipates a sustained economic recovery in NZ to increase demand, but supply restrictions may stifle development.
Lorraine Witten was appointed as Chairman of the Group on 30 September 2021.
On 13 October, at the time of writing, MOV was trading at $1.6, up 1.27%.
Mainfreight Limited (NZX:MFT)
Freight forwarding company, Mainfreight, had a good year in FY21. The volume of trade in all regions remained higher than previous year.
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COVID-19 shutdown limitations in NZ resulted in a lower-than-expected drop in income, but trade in Australia remained unaffected.
While domestic transport trading witnessed a 30% reduction in income following lockdowns, warehouse activity has been consistent with prior weeks, and the Air & Ocean segment has seen the current demand for MFT's services.
On 13 October, at the time of writing, MFT was trading at $90.02, up 0.02%.
Marsden Maritime Holdings Limited (NZX:MMH)
Marsden Maritime, industrial and commercial land for lease provider, reported a net profit of $14.26 million for the year ended 30 June 2021. MMH's marina and property activities showed a 14.6% rise in revenue YOY.
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Northport's bulk freight throughput climbed 18.3%, while yearly container volumes increased slightly over the previous year.
MMH's new ecosystem-based business strategy supplied clarity and guidance for expansion while ensuring that land holdings were enhanced for the best long-term results.
On 13 October, at the time of writing, MMH was trading flat at $6.4.
Bottom Line
It is yet to be seen how the transportation sector progresses ahead amid supply chain challenges and COVID-19 lockdowns.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)