Freightways Group books 6.7% revenue growth in H1 FY25

Freightways Group (ASX:FRW) reported its financial results for the half-year ended Dec. 31, 2024, highlighting a solid performance amidst a challenging macroeconomic environment.

The group reported a 6.7% increase in operating revenue to $662.1 million, with a 9.5% rise in net profit after tax, amounting to $44.7 million.

This growth was attributed to strong market share gains and improved pricing strategies across its divisions.

The Express Package and Business Mail division saw a revenue increase of 5.8%, supported by enhanced service performance and operational efficiencies.

"The EP division has performed well with solid market share gains and a well-executed pricing round," stated Mark Troughear, CEO, when discussing the division's results during the presentation.

Freightways’ Information Management and Waste Renewal segment also experienced an 11.3% revenue growth, driven by increased digital operations in Australia and steady document storage activities.

However, the segment's EBITA margin dropped due to one-off costs during the period.

The company's interim dividend was announced at 19 cents per share, with a record date of March 7 and payment set for April 1.

The dividend policy is aligned with their capital management strategies to sustain and grow shareholder value.

Freightways remains focused on maintaining a robust credit profile and optimising its capital structure for future growth.

Their outlook includes further leveraging market opportunities in the Australian e-commerce sector and expanding their medical waste management capabilities.