Freightways stock posts 17.6% revenue growth in Q1

Freightways reported double-digit earnings growth for the first quarter of its 2027 financial year at its annual meeting in Auckland on Thursday, October 29. Revenue increased 17.6 percent to 408.3 million New Zealand dollars in the three months to September 30, while net profit rose 12 percent to 26.2 million New Zealand dollars, according to RNZ.

Fuel costs shape the outlook

Operating earnings before interest, tax and amortisation increased 12.9 percent to 50 million New Zealand dollars. Higher fuel-recovery charges and the contribution from Australian temperature-controlled transport company VT Freight Express supported revenue, but elevated fuel prices also reduced discretionary consumer spending.

New Zealand express package volumes rose 2.9 percent, with 2.6 percentage points coming from market-share gains and 0.3 percentage points from existing customers. E-commerce parcel volumes increased 24 percent, while retail volumes declined 1 percent and health-related volumes fell 3 percent.

Premium services remain under pressure

Revenue in the Express Package division rose 20.1 percent to 346 million New Zealand dollars. Earnings grew 9.9 percent, less than revenue, and the division's EBITA margin declined to 12.2 percent from 13.3 percent as demand for overnight airfreight and temperature-controlled deliveries weakened.

The Information Management division provided a counterweight. Its revenue increased 5.6 percent to 63.9 million New Zealand dollars, while EBITA rose 17.5 percent to 9.4 million New Zealand dollars and the margin improved to 14.7 percent from 13.2 percent.

Freightways maintains expansion focus

Freightways operates express parcel, business mail, information management, logistics and related transport services across New Zealand and Australia. Its portfolio includes New Zealand Couriers, Post Haste, Big Chill, Allied Express and VT Freight Express, giving the group a multi-brand presence across time-sensitive delivery, temperature-controlled freight and information services. The company is positioned as a diversified regional logistics operator rather than a single-service courier business.

Management expects existing-customer volumes in New Zealand and Australia to remain subdued until fuel prices fall sustainably. A recovery could be stronger in New Zealand, while the pace of improvement in Australia will depend more on broader economic conditions.

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