ASX-listed freight and logistics operator Wiseway saw a turnaround in profits in the second half of the 2022-23 financial year.
The company reported a net loss of $3.7 million in the six months to the end of 2022. The company then saw a net profit of $500,000 for the six months through June 2023. However, despite the turnaround, the company’s net profit was negative $3.2 million for the full financial year.
The company said the turnaround in performance was driven by “continued operational and cost discipline, diversification of revenue streams and maturing overseas divisions”.
The company’s revenue of $106.6 million was down 18.5% on the previous year. The company attributed this decrease to “recalibrating” its client mix and “exiting unprofitable clients”.
The company’s EBITDA for the 2023 financial year was $3.7 million, a reversal from negative $200,000 the year before.
Wiseway CEO Roger Tong said the company’s turnaround plan was yielding results.
“Continuing on from the effects made in the first half of FY223, we are pleased that the group has achieved its strongest profitability in the January to June period since listing on the ASX,” he said.
“We are excited that our global network is starting to bear fruit. In the last six months, the company is seeing more customers use Wiseway in multiple geographies. Furthermore, Wiseway is extending into more integrated and value-added services with customers.”
Mr Tong said the company expects continued profitability in the next six months as it enters the peak period for freight.
“Revenue growth may be more moderate due to decreasing international freight rates, but Wiseway believes that margins can be largely maintained, and overall volumes can continue to growth,” he said.
“Wiseway has truly turned a corner in the last 12 months. The company has an excellent performance trajectory in the next few years.”