In the six months to December, Freightways' underlying revenue rose 7%, from $254.9 million to $272.8 million, earnings before interest, tax, depreciation and amortisation (ebitda) rose 1.2%, from $51.2 million to $58.8 million, while after-tax profit rose 6.2%, from last year's $29.5 million to $34 million.
Freightways managing director Dean Bracewell said highlights of the half included the strength of the underlying volume growth and profit margin in the express package and business mail division.
However, earnings fell in information management in the face of restructuring costs at TIMG Australia's LitSupport business, BusinessDesk reported.
Craigs Investment Partners broker Peter McIntyre said it was a `` two-tone result'' and ``slightly softer'' than expected.
``There was modest overall growth, before non-recurring items,'' he said.
He said another stellar performance in the express business was offset by softness in information management, which saw an ebitda decline, when excluding the Sydney relocation costs.
``The express package & business mail delivered an outstanding performance, on the back of volume and top-line growth,'' Mr McIntyre said.
Freightways' commentary said the volumes and activity for the first half supported expectations of it again improving its overall year-on-year performance.
Mr McIntyre said while the outlook was second-half earnings growth, it could be of a lower quality than Freightways expected, as it may partly rely on exclusion of the $2.5 million Sydney relocation costs.
Mr Bracewell said capex in the current year included automation for roller beds at its Christchurch hub, racking and IT ``for the growth we're still seeing for document storage'', as well as trucks and IT, BusinessDesk reported.
Through the remainder of the 2017 year, Freightways expects to complete the relocation projects for its businesses in Sydney and Christchurch, ``with the full benefits relating to these projects on target to be realised in the 2018 financial year''. Debt in the first half at $159 million was unchanged from a year earlier.
