• Maintained revenue in adverse market conditions
• Effective integration of acquired businesses
• Ability to recover cost increases
• Rationalised investment in overhead

Silk Logistics Holdings Ltd reported its financial results for the first half of FY25, delivering a solid performance in a challenging market environment. The company reported revenue of $287.9 million, up 4.1% compared to the prior corresponding period, and underlying EBITDA of $47.9 million, up 0.4%. Underlying EBIT was $15.6 million, down 14.3% due to increased depreciation and amortization. The company maintained revenue through effective integration of acquired businesses, the ability to recover cost increases, and a disciplined focus on managing costs and yield. Silk's balance sheet remained strong, with $22.3 million in cash and a net leverage ratio of 2.3x. The company generated $7.0 million in underlying free cash flow, with a conversion rate of 51.0% of underlying EBITDA. Silk's Port Logistics segment delivered revenue growth of 8.6% and a 0.6 percentage point increase in EBITDA margin, while the Contract Logistics segment saw a 3.7% decline in revenue and a 2.1 percentage point decrease in EBITDA margin. The company continues to progress its ESG initiatives, including transitioning to alternative fuels, improving waste and recycling, and enhancing its carbon reporting.