A STRATEGY of diversification has contributed to a solid performance in the 2019-20 financial year, Wiseway chief executive Roger Tong believes.
Results just released showed:
- Revenue for FY20 was $102.6m, up 9%,
- Revenue from the core business of dry air freight was down 8%
- Gross profit for FY20 was $27.9m, up 34%
- Operating expenses for the full year were $22.9m, up 11%
- Statutory net loss after tax of $3.4m primarily due to depreciation expense of $5m, finance costs of $1.6m due to reclassification of operating leases and income tax expense of $1.8m due to the removal of previously recognised deferred tax asset on the balance sheet.
Mr Tong said Wiseway’s strategy of diversifying its business and income, had “delivered a step-change in net operating cash flow”.
“This was particularly evident in the second half of the year, which was driven by strong demand for new service offerings on our expanded platform – sea freight, perishables, imports and distribution, and road transportation,” he said.
“Our transformation into a truly integrated logistics service provider has contributed to substantial growth in revenue, up 9% to $102.6 million.
“Notably, the revenue portion of the new businesses as a percentage of the total revenue, has increased from 5% to 22% since the IPO in October 2018.”
Mr Tong said their ability to deliver “integrated logistics services and maintain freight capacity” in a tightening market, had enabled them to win new customers, particularly bigger Australian importers and exporters.
“Our strong market position in export air freight has been complemented by organic growth in perishables, sea freight, imports and distribution, and the road transportation business in Australia and New Zealand,” he said.
Mr Tong said Wiseway was well-placed to contribute to the post-pandemic recovery, despite a volatile macro-economic outlook.
“Wiseway’s transformation, strong financial position, and experienced management team should enable Wiseway to continue its positive momentum and be at the forefront of the changing dynamics of the transportation and logistics sector,” he said.