AUSTRALIAN integrated freight and logistics operator Wiseway has reported an 11.8% growth in revenue in the first half of financial year 2022, compared to the previous corresponding period. It attributes the growth to an expansion in operations across both the perishables division and an increase in imports driven by e-commerce.

Florence Tong, Wiseway managing director, said, “Our expanded operations in Singapore and the United States are beginning to generate solid revenues, with organic growth driving a $2.5 million contribution across these channels, while Wiseway’s international footprint presents new growth opportunities, increased supply chain efficiencies and revenue synergies”.

Ms Tong said the foundations are in place to capitalise on emerging opportunities within APAC’s fastest growing economies – while the expansion within the US addressable market is creating the potential for strong and consistent higher-margin revenue openings.

“Our focus on business divisions outside traditional dry outbound air freight services has seen a 55% growth within the perishables segment, driven primarily by seafood, fruits and vegetables, meat and dairy product exports,” she said.

Commenting on the continuing impact of COVID-19, Ms Tong said that established strategic partnerships and a track record of innovation had allowed the company to navigate the “emerging vulnerabilities across the sector created by the pandemic”.

“Wiseway is proud of its reputation across the industry as a resilient, collaborative and networked operator, with customers and partners turning to us to keep essential supply chains open through the provision of safe, reliable, and high-quality integrated logistics solutions,” she said.

Wiseway’s net profit after tax was $1.8 million compared to $3.4 million pcp, while its gross profit grew by 2.8% to $18.6 million compared to pcp. The company’s lower profitability after tax in 1H22 was primarily driven by a greater tax liability provision, compared to a tax benefit pcp. This was coupled with tightened gross margins, reflecting the securing of additional business within new markets, and investments to grow the company’s headcount across North America and in the Australian based imports division.

Revenue for 1H22 was up 11.8% to $77.9 million, driven by significant revenue uplifts in growth segments:

  • 55% revenue uplift in the perishables division, including fresh produce, seafood, and dairy products.
  • 11.1% revenue uplift in sea freight, driven by a shift in client preferences prompted by COVID19 disruption across the air freight sector and investment in specialist container transportation vehicles.
  • 76.7% revenue uplift in imports and distribution, supported by the growing demand for ecommerce transactions and customs bonded warehouse facility capacity-building activities.
  • 77.8% growth in interstate road transportation, which has contributed $3.2 million to the company’s total revenue.
  • Debut revenue of $2.5 million from the group’s newly launched global operations including its recently established hubs in Singapore and the US.
  • Solid revenue from the core business of dry air freight which contributed $42.9 million to total revenue.

Ms Tong said, “Over the next three to five years, we believe Wiseway’s business model will provide the perfect platform from which to expand across the US and the Asia Pacific, from where we expect the majority of growth in the global freight industry will come.

“It is through the development of a network of interconnected business divisions, all united under Wiseway’s values and strategic vision, that we believe we will be best able to maximise the potential of these opportunities,” she said.