Interested in logistics stocks? 2 stocks to look at this month-FRE, MFT

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Interested in logistics stocks? 2 stocks to look at this month-FRE, MFT

logistics stocks
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  • NZ’s logistics industry is well structured and has experienced strong growth in last few years
  • Freightways records impressive HY22 performance, paid dividend this month
  • Mainfreight suspends operations in Russia, owing to the Russian-Ukraine conflict

Logistics companies are instrumental in a nation’s economic development as they play a key role in the transportation of goods across the country and also facilitate exports and imports across international markets.

NZ’s freight and logistics market is likely to record a CAGR of over 3% during the period between 2022 and 2027. Further, road freight is the chief mode of freight transport, while other modes like air, shipping, inland water and rail are also widely used in the country.

With this overview, let us skim through the two NZX-listed logistics stocks- Freightways Limited (NZX:FRE) and Mainfreight Limited (NZX:MFT).

NZ logistics stocks- FRE, MFT

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Freightways Limited (NZX:FRE)

One of the leading providers of logistics services across New Zealand is Freightways Limited. In its HY22 performance, the Company posted a climb of 7.7% and 7.4% in its revenue and NPAT, respectively, thus demonstrating resilience amid lockdowns and restrictions during the first half of FY22. Moreover, its express package volumes picked up when online shopping recommenced.

Related Read: Vroom Vroom! 3 NZX freight and logistics shares to keep an eye on

FRE has recently distributed 18.0 cps as an interim dividend, along with a supplementary dividend of 3.18 cps for its overseas shareholders.

The Company continues to focus on revenue and earnings growth for the remaining part of FY22, thereby delivering enhanced value to its shareholders.

On 8 April, at the time of writing, FRE was down by 0.71% at NZ$12.500.

Mainfreight Limited (NZX:MFT)

Another company engaged in the business of supply chain logistics is Mainfreight Limited. A few days back, the Company had revealed that its logistics services to and from Russia had been discontinued, owing to the Russian invasion of Ukraine.

Also, its Ukraine office has been shut, and those wanting to leave the country are being provided with assistance and are being relocated to other European nations where MFT is running its operations.

On 8 April, at the time of writing, MFT is declining by 0.05% at NZ$80.760.

Bottom Line

The logistics sector plays a key role in promoting trade and e-commerce across the nation and also helps bolster the infrastructure development in the country.


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