WISETECH Global Limited, provider of the CargoWise logistics software platform, has announced its financial results for the six months ended 31 December 2021 (1H22). The company reported total revenue of $281.0 million, up 18% on the six months ended 31 December 2020 (1H21).
The company also reported net profit after tax during the period of $77.4 million, up 74% and 1H22 underlying NPAT of $77.3 million, up 77% on the prior corresponding period (1H21: $43.6 million).
WiseTech founder and CEO, Richard White said, “We are seeing ongoing momentum in our market penetration with three new CargoWise large global rollouts secured since 1 July 2021 and continued strong CargoWise revenue growth demonstrating the appeal of our customer value proposition.
“Our top line revenue growth, coupled with our organisation-wide efficiencies and acquisition synergies extraction program, is enabling us to drive operating leverage, as evidenced by our strong 1H22 financial performance.”
Mr White said the ongoing growth of e-commerce and strong demand for goods, coupled with the challenges posed by outbreaks of new COVID variants, has resulted in continued capacity constraints, port congestion, supply chain labour shortages and higher freight rates.
“From WiseTech’s perspective, whilst higher freight rates do not result in immediate revenue growth, we are benefitting from the acceleration of the longer-term structural changes they are driving,” he said.
“In particular, we are seeing increased investment by logistics companies in replacing legacy systems with integrated global technology, such as CargoWise, to drive productivity, and facilitate planning, visualisation and control of global operations.
“We are also seeing continued consolidation within the logistics sector. Over the past two years top 25 global freight forwarders such as DHL, DSV, CEVA Logistics, Kuehne + Nagel and JAS Worldwide have embarked on acquisitions with consolidation activity intensifying in the second half of calendar 2021,” Mr White said.
The company reported total revenue growth of 18% on 1H21 (1H22: $281.0 million; 1H21: $238.7 million) reflecting growth from its CargoWise platform and an expected 1% contraction in revenue from acquisitions.
Earnings before interest, tax, depreciation and amortization (EBITDA) grew 54% on the pcp to $137.7 million. The company achieved a 1H22 EBITDA margin of 49%, up 12pp on 1H21. This improvement reflects the impact of WiseTech’s strong revenue growth and $19.7 million in net cost reduction benefits.
The outlook for the company remains strong with FY22 EBITDA guidance upgraded to 33% to 43% growth (from 26% to 38%). Revenue growth guidance of 18% to 25% was reaffirmed.
