MFT, FRE, MOV: Why are these NZX logistics stocks in the limelight?

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MFT, FRE, MOV: Why are these NZX logistics stocks in the limelight?

logistics stocks
Image source: Aun Photographer, Shutterstock.com

Highlights

  • Logistic companies are instrumental in a successful supply chain
  • Mainfreight to pay 87.0 cps as dividend in July
  • Freightways reveals earnings being impacted by the Omicron outbreak

Logistic companies make use of numerous modes of transportation for the quick and efficient movement of goods to the right place on time. Moreover, they help ensure fast and safe shipping, warehousing, and the delivery of products to their customers through an experienced team of professionals.

These companies are significant for a successful supply chain, thus helping increase sales and profits of businesses and, at the same time, leading to increased efficiencies, reduced costs, better inventory control, higher production rates, and an improved customer experience.

Here, in this article, let us take a peek at the three NZX-Listed logistic stocks that can be considered.

NZ logistic stocks- MFT, FRE, MOV

Source: © Enanuchit | Megapixl.com

Mainfreight Limited (NZX:MFT)

Mainfreight Limited had recently released its unaudited FY22 results, displaying a record performance. Its PBT rose 86.5% to NZ$489.4 million, and its revenue clocked NZ$5.22 billion, a jump of 47.2% from previous year, bolstered by its high-quality logistic services and increase in new customers.

Related Read: Mainfreight (NZX:MFT) posts best-ever results, profit up 89%

Further, MFT witnessed increased sales growth and profitability across all its regions.

On 22 July, the Company will pay a final dividend of 87.0 cps, thus taking the total FY22 dividend to 142.0 cps, up 89.3% on pcp.

At the market close on 2 June, MFT rose 2.58% at NZ$80.00.

Freightways Limited (NZX:FRE)

Freightways Limited provides express package and business mail services across the country. Last month, it shared its trading update, stating that the spread of the Omicron variant in March and April had a significant impact on its business operations.

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

Owing to isolation requirements, the Company faced staff shortages. As a result, temporary staff was hired, which raised the increased training cost and reduced productivity. Hence, FRE anticipates an impact on earnings through lower revenue and an increased cost base to be around NZ$5 million to NZ$7 million for the latter half of the year.  

However, Freightways is confident of mitigating the said challenges by the return of experienced staff to its business operations.

At the market close on 2 June, FRE was down 1.38% at NZ$10.750.

Move Logistics Group Limited (NZX:MOV)

Another end-to-end logistics expert operating in NZ is Move Logistics Group Limited. The Company revealed being one of the four final preferred applicants for the Waka Kotahi funding for its Oceans strategy.

Also Read: MFT, MOV: 2 freight and logistics stocks on watchlist amid supply chain woes

The said initiative is a part of MOVE’s wider decarbonisation strategy and will ensure the transportation of its customers' cargo in the most efficient way possible. Moreover, the Oceans strategy will provide an alternative service solution being added to NZ’s domestic freight services, thereby providing additional resilience for the country’s supply chain.

At the market close on 2 June, MOV gained 0.88% at NZ$1.150.

Bottom Line

Despite supply chain congestions across the world, restricted airfreight capability due to the Russia/Ukraine crisis, and a rise in air and ocean freight rates, NZ logistics stocks remain resilient and continue to navigate successfully and are focused on delivering the best customer experiences.

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