Freightways has reported its strongest first-quarter result in a decade on the back of an almost 17% increase in revenue to $122.2 million.
Profit margins similarly gained about 17%, earnings before interest, tax, depreciation and amortisation were up 27% at $24 million and after-tax profit up 37% at $13 million, in the quarter ended September 30.
Managing director Dean Bracewell said the positive first-quarter performance was underpinning expectations of year-on-year earnings growth for 2015.
''Within our express package businesses we remain encouraged by the increased activity amongst our existing customer base, both from business-to-business and business-to-consumer deliveries,'' he said.
Freightways' shares were up almost 7%, or 35c, at $5.50 following the announcement.
Craigs Investment Partners broker Peter McIntyre said it was a ''strong quarterly performance'' and, while still early in the financial year, the result could prompt a revision of its growth forecast from the present 12%.
''The key driver appears to be coming from the core express package business delivering a 23% improvement in ebita [earnings before interest, tax and amortisation] and 160 basis point-margin expansion,'' he said.
Freightways, which operates courier-related brands New Zealand Couriers, Post Haste, Castle Parcels, NOW Couriers, Pass The Parcel, SUB60, Kiwi Express, Stuck and Security Express, said yesterday ''all delivered record results'' during the first quarter, BusinessDesk reported.
It attributed the gains to increased demand from existing customers and from winning greater market share.
The company has lifted operating revenue and pre-tax earnings every year bar one in the past decade.
''Increased activity from existing customers throughout all geographies and industries in New Zealand has been further assisted by quality market-share gains and some pricing improvement,'' Mr Bracewell said.
