From the Chairman and Chief Executive Officer - “In a year marked by economic headwinds for both New Zealand and Australia, Freightways Limited has announced a resilient financial performance characterised by increased revenue but a decline in net profit.”

The logistics company reported a 7.8% increase in operating revenue, driven by solid performances from its subsidiaries, Allied Express and New Zealand Couriers. However, the net profit after tax fell by 5.8%, primarily due to heightened interest expenses amidst a tightening macroeconomic environment. 

Despite slower customer activity, particularly in the Express Package and Temperature Controlled transport sectors, Freightways emphasised its success in capturing market share through strong service levels. "The reality is that it has been a tough year for our customers," a spokesperson noted. "The declining macroeconomic environment has led to reduced consumer spending due to higher interest rates and living costs, yet our businesses have managed to perform well during these challenging times." 

Freightways’ diversification strategy has played a crucial role in its ability to navigate the economic downturn. The company's operations extend beyond the New Zealand market, encompassing specialised logistics services in sectors such as Waste Renewal and Information Management. This diversification provided the company with resilience and growth opportunities amid the recession.

On the operational front, earnings before interest and tax (EBIT) rose by 1.8%, reflecting steady business performance despite the external challenges. In a positive turn, the company observed an improvement in the labour market in both New Zealand and Australia, with a noted increase in job applicants and a decrease in turnover within its depots and drivers' network. This trend is expected to alleviate pressures on wage rates, aiding margin management going forward.

Looking ahead, Freightways anticipates continued challenges across both sides of the Tasman Sea. However, there are signs of optimism. The company is hopeful that the worst may be over for New Zealand's economy, with expectations of improvement supported by lower interest rates in the second half of FY25. Meanwhile, the situation in Australia appears somewhat more favourable, though inflation challenges remain.

Freightways highlighted market gains in its Express Package businesses and reiterated the strength of its Information Management services as testaments to the benefits of its diversified approach. As it looks to the future, the company is well-positioned to capitalise on opportunities in its Temperature Controlled divisions and plans to further develop its third horizon business, including same-day temperature-controlled transport and high-value waste solutions.

In closing, Freightways expressed gratitude towards its board for their strategic guidance and offered thanks to shareholders and customers for their continued support during a challenging year. The company remains committed to navigating the evolving economic landscape while continuing to invest in its core and emerging markets.