Chairman bullish on coming financial year as logistics operation matures
Fresh produce transport and logistics supplier Lindsay Group has seen a 30.9 per cent rise in net profit after tax (NPAT) to $8 million helped in some part to a legal settlement from last year.
The rise, in line with expectations, was based on a 5.1 per cent revenues boost to $325 million, with north Queensland expansion the main driver and the legal case adding $735,000 after tax.
“The NPAT result is largely attributed to growth in [the transport arm] and the improved contribution from Lindsay Fresh Logisics (LFL) as these operations begin to work in a seamless integrated logistics chain,” the company says.
It notes that though costs rose at a lower rate than revenue, depreciation and amortisation also grew – from $16.25 million to $19.64 million.
Transport revenues grew from $216 million to $224 million as that arm’s gross profit rose 13.1 per cent to $22.8 million.
Its new logistics system went live on July 1 and is set to open at the Acacia Ridge site in October.
The company has been pleased with its recent fleet renewal focus but repairs and maintenance spending actually rose from $14.03 million to $14.46 million as did registration costs, from $4.22 million to $4.89 million, though fuel and oil costs fell from $39.78 million to $31.14 million.
Subcontractor spend in was also up, from $34.31 million to $36.91 million, as was employment costs, from $82.87 million to $90.26 million.
Pallet charges were also up, from $1.84 million to $2.21 million.
The company is confident of its direction.
“We all have high hopes for business this coming year,” chairman John Pressler says.
“Two new depot locations, in Brisbane and Mareeba, will be completed.
“The LFL business with continue experimenting and growing the export cold chain to the world.”