Wednesday 21st Nov, 2018

WiseTech reports healthy results for first half of FY18

Photo: Jim Wilson
Photo: Jim Wilson

CUSTOMS and logistics software giant WiseTech Global’s financial report for the first half of the 2018 financial year shows a company with an insatiable appetite for international growth through acquisition, backed up by healthy financial results.

The company’s total revenue for the first half of FY18 came to $93.4m, an increase of 31% on the first half of FY17, with its EBTDA (earnings before interest, taxes, depreciation and amortisation) up 32% in the same period to $31.8m.

Its operating profit was up 26% to $22.5m and the company’s gross profit was up 30% to $79.4m.

WiseTech CEO Richard White said the company’s global operations continued to deliver growth, while the delivery of new products and geographic expansion would accelerate future growth.

“The power and strength of our CargoWise One operations are reflected in their 100% recurring revenue, annual customer attrition rate of <1% and 46% EBITDA margin – all delivered while enlarging our geographic footprint and significantly expanding our pipeline of innovation to further build our leadership position,” he said.

CargoWise One consists of integrated software modules covering key logistics transactions in addition to integrated modules for administration, accounting and management.

The company has been expanding through acquisitions of customs-focused software companies around the globe. Since January 2017 WiseTech acquired such companies locally and in Belgium, Brazil, Germany, Italy, Taiwan, the Netherlands, the US and Ireland.

Expanding geographically by acquisition is a strategy to buy into market positions that take years to build, the company’s ASX statement said. “We then integrate the acquired industry and developer talent and customers over time to accelerate our organic growth,” the statement read.

“Accordingly, we will continue to execute on our considerable pipeline of near-term, mid-term and long-term acquisition opportunities in target areas of Asia, Europe and South America.”

Mr White said the company was well-placed to meet the needs of customers, leverage macroeconomic conditions and drive the competitive dynamics of logistics execution around the world.

“Additionally, e-commerce is becoming a transformative model alongside the traditional bulk freight markets we already service, with the exponential volumes involved simultaneously pressuring and expanding third-party logistics businesses,” he said.

“We see high growth and increasingly specialised needs in e-commerce cross-border delivery modes and we have product capabilities expressly targeted at this mega trend. As e-commerce logistics evolves, we too continue to develop the technology and productivities needed to support the high volume, small parcel industry.”

WiseTech serves 7000 customers with its software licenced for use in 130 countries.

In the first half of FY18, the company increased its employee numbers by 30%.

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