Move Logistics Group is expecting an earnings improvement for its 2023 financial year result in spite of ongoing cost inflation and supply chain disruptions.
The NZX/ASX listed company is expecting underlying EBITDA from continuing operations to be an improvement on last year’s $54.3 million. Increasing benefits are expected to be seen from FY24 onwards, it says.
The company says its freight reset strategy remains in progress with improvements in service delivery already achieved. It reports sales in this division were softer in the first quarter of the year, due in part to inflationary pressures and wet weather which affected a number of customers.
The company also continues to explore the divestment of its specialist moving business which has been determined to be non-core to the group.
Contract logistics is making “pleasing progress” and the benefits of the expansion programme over the past three years is now “bearing fruit”, the company says.
“Capacity is at high levels across the network, with increasing demand.”
It’s international business is performing to expectations, with the new shipping strategy well progressed. Following the purchase of the Atlas Wind vessel, Move’s trans-Tasman shipping service is expected to commence in late 2022 and will contribute towards the 2H23 result.
The company also reports “significant investment” is being made into its digital transformation, which will drive operational leverage, reduce the cost to serve and enhance the customer experience. The initial focus is on a new transport management system, which will be piloted this year, with a full rollout in 2023.
Executive director Chris Dunphy says the company operates in a “robust sector with strong projected growth in demand”.
“Move has excellent bones and the foundation is now being put in place to help us deliver on the company’s potential.
“While there is still work to be done, we are making good progress on our improvement targets, which will deliver value for shareholders.
“We are encouraged by the momentum over the last year, the initiatives underway and the excitement amongst our team,” Dunphy says.
