Wiseway reports $1.8M net profit

Integrated freight and logistics operator, Wiseway Group, has announced its financial results for the 12 months ended 30 June 2021.

Net Profit After Tax (NPAT) for the reported period was $1.8 million – the first full-year NPAT since listing in 2018.

“This milestone result for Wiseway, our first full-year [NPAT] since listing in 2018, reflects the strong business momentum in the company and the benefits of our diversification strategy,” said Wiseway Managing Director, Florence Tong.

“We have also continued our strategic investment program which has delivered scale, diversification, and enhanced growth opportunities for the business.

“Our robust investment program has been aimed at diversifying our income streams, developing our operating infrastructure, and expanding our team’s capabilities to drive growth in freight volumes and revenue.

“Diversification benefits delivered organic growth across Wiseway’s key divisions of perishables, road transportation, and imports and distribution, which collectively more than doubled in size over the past year and supplemented the steady performance in our core dry air freight business division.

“Wiseway’s unique offering and competitive advantage stem from strong partnerships with airlines, customs-bonded warehouses with advanced X-ray scanning facilities, and an extensive road transportation network of company-owned trucks.

“Wiseway continues to leverage its scale and integrated platform capabilities to win new customers who are seeking a one-stop shop for their day-to-day logistics needs, in the face of pandemic-related challenges and tightening restrictions on shipping capacities.”

EBITDA was $8.1 million, a 62 per cent uplift, improving EBITDA margin by 1.5 ppts compared to the previous corresponding period.

Revenue was $126 million, up 23.5 per cent from the prior corresponding period, while strong operating cash flows were up 83 per cent to $7 million.

The company has also expanded its US presence with a new Wiseway branch in Los Angeles, California, and in August 2021 strategically acquired TAF E-Logistics (Asia) Pte Ltd (TAF).

“Our strategic acquisition of TAF, which has established a regional hub for Wiseway in Singapore will deliver valuable supply chain efficiencies and revenue synergies across our global network of shipping destinations and place us at the doorstep of Southeast Asia’s fastest growing economies including Indonesia, Thailand, Malaysia, and Vietnam,” said Tong.

“We are actively pursuing the opportunities inherent in these regions and globally, and we are confident that these milestones on Wiseway’s growth journey will provide the benefits of choice and value to our customers and deliver long term returns for shareholders.”

Wiseway claims its logistics operations are an important part of the Australian economy and have shown resilience through the ongoing Covid-19 pandemic. Diversified freight services have also reportedly enabled it to deliver services to its clients during challenging times.

“Wiseway has developed the appropriate resource planning capabilities and risk management practices to sustain the growth momentum in the business, which prepares us well to address any supply chain disruptions,” said Tong.

“Our global expansion into the US and Southeast Asia reflects our robust strategy which combines a focus on organic growth with continuous exploration of new growth opportunities.”