• Solid result in a challenging macro-economic environment
• Strong performance across all businesses during peak period
• Express Package division delivers 12% EBITA growth

Freightways Group has reported a solid half-yearly result for the period ending 31 December 2024, with revenue growth of 6.7% and EBITA growth of 6.5%. The Express Package and Business Mail division delivered a strong performance, with a 12% increase in EBITA. This was driven by market share gains across all businesses and a well-executed pricing round. The Information Management and Waste Renewal division also performed well, with revenue up 11.3%, although EBITA was flat due to one-off costs. The company's capital management principles remain focused on maintaining a solid investment-grade credit profile, with a dividend policy that balances debt reduction and sustainable payouts. Looking ahead, the company expects a slow grind for organic growth in New Zealand, while the Australian economy is slightly more buoyant. The focus is on restoring margins in both divisions, with continued investment in pricing systems, fleet upgrades, and potential M&A opportunities in Australia.

The company expects full-year capex to be steady at $35 million, including for trucks, IT projects, and mechanisation in New Zealand. Labour cost increases are expected to be just above 3% for the year. The company has invested $1 million in a new pricing/billing and courier pay system, with another $4 million expected in the second half.

The company expects volume growth as the economy improves, with a focus on restoring margins in both the Express Package and Business Mail, and Information Management and Waste Renewal divisions. The company is also assessing M&A opportunities to leverage its presence in Australia.