New express package volume created by online retailers has seen Freightways post a 21% gain in first-half profit.
The company has lifted sales and fattened margins at its courier and information management units.
Profit rose to $26.3 million in the six months ended Dec. 31, an all-time high for the interim result, from $21.7 million a year earlier, says the company in a statement. Sales climbed to $241.8 million from $218.3 million according to BusinessDesk.
Freightways gets 76% of sales and 75% of pretax earnings from express packages and business mail, which includes the NZ Couriers, Post Haste, Sub 60 and DX Mail brands.
It achieved a 10% uplift in revenue in those businesses to $185 million in the first half.
Sales from information management rose 12% to $58 million.
“Both the express package and business mail and information management markets remain positive and Freightways’ businesses remain well-positioned to benefit from the opportunities that exist in these markets,” says the company.
“The express package market is expected to continue to expand due to increasing activity amongst existing users and due to new volume created by online retailers.”
Freightways also sees growing demand for business mail services and for information management services as companies look to outsource their document and computer media storage requirements.
