Freightways has increased its half-year revenue 1.3% to $318.9 million and says it’s yet to see any impact from the coronavirus (Covid-19).
Its earnings before interest, taxes, and amortisation (EBITA) was down 2.4% to $50.1m and net profit after tax was down 12.6% to $29.2m for the six months to December 31.
“Freightways’ businesses are yet to see any material impact from Covid-19. If in future it has a broader impact on the economies in which they operate, it could ultimately impact Freightways, and this will be monitored closely,” the company says.
One of the major highlights during the period was the sale and purchase agreement to buy Big Chill Distribution for more than $117m.
“Overall capital expenditure for FY20 is still expected to be between $25-26 million, not including any potential capital expenditure associated with Big Chill, if that acquisition proceeds before the end of the financial year. Operating cash flows are expected to remain strong throughout 2020.
“Management will be focused on integrating the Big Chill business into Freightways in 2020, assuming OIO approval is granted, as well as driving synergies from the smaller medical waste and destruction businesses acquired during calendar 2019.
“Freightways is well positioned with its impending acquisition of Big Chill to leverage another niche of the New Zealand express freight market. The Company is committed to continuous improvements within its portfolio of businesses,” it says.
