Integrated transport, logistics and rural supply company, Lindsay Australia, has announced financial results from its network of stores and depots for the six months ended 31 December 2019 delivering revenue of $216.0 million and Net Profit After Tax (NPAT) of $5.8 million, representing a NPAT increase of 7.2 per cent over the prior corresponding period.
Transport freight revenue for the half year grew $10.1 million, an increase of 7.1 per cent to the prior corresponding period, according to Lindsay Australia. Produce freight volumes were negatively impacted in some regions due top adverse weather and seasonality but these reductions were offset by growth across capital cities and additional revenue from expansion into refrigerated rail.
Recent bushfires reportedly did not have a material impact on the division, but additional costs were incurred due to the re-routing of some journeys. Transport made a divisional contribution of $17.0 million, an increase of 5.5 per cent on the prior corresponding period.
Rural revenue for the half year grew by $3.2 million or 5.0 per cent on the prior corresponding period. The division is reported to be better placed to focus on high growth horticulture regions that have a strategic fit with the Transport division, following a strategic review in the prior financial year, resulting in the closure or consolidation of some marginal performing sites.
Rural made a divisional contribution of $3.2 million, an increase of $1.2 million or 59 per cent on the prior corresponding period, benefitting from operating cost reductions from branch rationalisation and consolidation.
"We are pleased to announce a strong set of results for the six months to 31 December 2019," said Lindsay Australia CEO, Kim Lindsay. "We have once again demonstrated our ability to mitigate weather and seasonality through the diversification of our product and location offering."
