National logistics carrier CTI Logistics Limited has issued its half-year profit guidance to 31 December 2024, with its EBITDA expected to be up on the corresponding period.
Despite the four per cent and seven per cent expected EBITDA rise though, the company’s profit before tax is expected to experience a significant drop than the previous corresponding period due to investments made by the company.
In the ASX release published prior to the new year, CTI Logistics also said a decreased demand for premium freight services was offset by a rise in minerals and energy-related work.
“The declared profit before tax for the half year is expected to be approximately 16 per cent lower than for the previous corresponding period,” the release states.
“The reduction in profit before tax primarily reflects strategic investments made to driver longer-term growth.
“They include the further development of owned sites, vehicle and equipment acquisitions, and pallet racking for new leased location which have significantly expanded our property footprint in Queensland, New South Wales and Victoria.
“While impacting short-term profitability, these investments lay the groundwork for sustainable and increased future earnings.
“Operationally there has been an increased demand for general freight services over premium freight services, offset by increased minerals and energy related work in the logistics segment.”
The financial results for CTI Logistics’ half year to 31 December 2024 will be released to the market in February 2025.
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