Freightways has provided a first quarter trading update for FY23 showing strong revenue growth and no signs of a recession yet, although the company remains wary.
Unaudited operating revenue for Q1 FY23 is up 17% to $237.4 million and net profit after tax is up 6.6% to $19.3m for the company’s consolidated result.
Chief executive Mark Troughear says higher revenue was driven by market share gains in most businesses for the freight, courier and information management firm.
The company expects item count to be down slightly for the first half due to a strong comparative period in the last 15 weeks of FY22.
“While we are mindful of the economic environment and a possible recession we have yet to see any material impact on our customers,” he says.
“The labour market remains tight and the cost of labour continues to be a source of pressure.”
The company has a “platform for growth and profitability in FY23” through existing businesses and new initiatives.
It also has the ability to flex its cost base if volumes decline, Troughear says.
The NZX-listed company also recently acquired Australian express package business Allied Express which specialises in the delivery of items over 22kg in weight.
Freightways says it sees growth opportunities resulting from this business on both sides of the Tasman.
In August this year, the company posted its FY22 result showing net profit up 4% to $73.9 million excluding the impact of the last payment due for its acquisition of Big Chill Distribution. Revenue was up 9% year-on-year to $873.1m
