ASX-listed logistics and freight company Wiseway Group announced its financial results for the twelve months ending 30 June 2021, recording net profit after tax of $1.8 million. It’s the company’s first full-year net profit after tax since listing on the ASX in October 2018.

Wiseway’s 2020-21 NPAT compared to a loss of $3.4 million in 2019-20 and was supported by organic revenue growth across the business’s key segments as well as prudent cost management practices.

Wiseway provides cross-border logistics including air freight, sea freight, import services, domestic transportation, warehousing and customs clearance services across its two main segments, general cargo and perishable cargo. It is one of the top three outbound air freight logistics providers in Australia.

The compnay’s EBITDA was $8.1 million, a 62% uplift, improving EBITDA margin by 1.5 ppts compared to the previous corresponding period.

Wiseway’s revenue in 2020-21 was $126 million, up 23.5% from the previous corresponding period.

The company has strong operating cash flows for the year, up 83% from 2019-20, to $7 million.

Wiseway is currently in a period of global expansion, recently establishing a new branch in Los Angeles, California, and in August 2021, the strategic acquisition of TAF E-Logistics (Asia).

Florence Tong, Wiseway managing director, said, “This milestone result for Wiseway… reflects the strong business momentum in the company and the benefits of our diversification strategy.

“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,” she said.

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.

During the year, the company also expanded its on-ground team in China. The teams at both the Shanghai and Guangzhou branches continue to provide in-country support to the organic growth of the company’s operations in China as well as the Asia-Pacific region.

The company achieved impressive organic growth in new markets in Asia, including Singapore, Japan, Indonesia, and Vietnam. This expanded outreach, beyond the established presence in China, represents a key focus in the company’s geographic diversification strategy.

Ms Tong said, “The expansion of our US operations through establishing an in-country presence and building local capabilities will expand our access to promising opportunities in the US and North American markets.

“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 South East Asia’s fastest growing economies including Indonesia, Thailand, Malaysia, and Vietnam.

“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’s revenue growth was primarily driven by:

  • a 127% growth in the perishables division, including fresh produce, seafood, and dairy products.
  • a 43% growth in sea freight, driven by stronger demand for perishable goods, namely fresh fruits.
  • a 164% growth in imports and distribution, supported by the growing demand for e-commerce transactions.
  • an 87% growth in interstate road transportation, which has contributed $4.3 million to the company’s total revenue.
  • steady revenue from the core business of dry air freight which contributed $78.8 million to total revenue.