Australian transport giant Lindsay Australia has made significant gains across all of its divisions in the 2023 financial year
Transport, logistics and rural supply provider Lindsay Australia is reporting a record profit for the 2023 financial year, as announced in a report on Monday.
The company’s operating revenue of $676.2m was up 22.3 per cent on 2022, also recording massive gains in underlying EBITDA ($90.3m, up 50.2 per cent) and PBT ($52.3m, up 95.2 per cent), while net debt has raised 8.1 per cent to $107.1m.
Multiple divisions across the company have seen growth across the financial year with increased demand for services in the transport industry, predominantly road and rail. Lindsay’s transport revenues have grown by 29.5 per cent as a result.
Despite harsh trading conditions in the rural division due to industry inventory overstocking, global price volatility and inflation, it still managed to grow four per cent to $163m.
Lindsay Australia CEO Clay McDonald congratulates all workers across the company for achieving these records.
“The record FY23 performance was an outstanding result for the Lindsay business,” McDonald says.
“The transport division led the way with a significant uplift in demand for Lindsay’s road, rail and depot handling services. The team demonstrated exceptional agility, capability and customer service to handle a significant increase in demand.
“This was driven by strong volumes in the horticultural and produce market, industry consolidation and positive consumer demand for fresh, chilled and frozen products.”
Rail revenue has risen by 43.4 per cent, buoyed by the addition of additional facilities, new rail operators entering the market and a fleet expansion from 404 to 650 rail boxes.
In the road division, revenue has risen by 25.6 per cent. Lindsay experienced a high demand for food and food-related products, which was serviced by an expansion of its road fleet with 44 new prime movers and more jobs for subcontractors.
The rural division is finding most of its success in Queensland, with 77 per cent of sales generated in the state. Lindsay says 75 per cent of the overall rural sales have come from the core four of packaging, chemicals, fertilisers and nutrients.
“The rural business performed well in difficult trading conditions and will benefit in FY24 from 11 months of trade of the WB Hunter business acquired in July,” McDonald says.
The acquisition of WB Hunter, a rural merchandise business founded in Shepparton, will give Lindsay further access to growth opportunities across the eastern seaboard, while the rail division looks to consolidate itself in Perth.
“Moving from FY23 to FY24, the Lindsay Road, Rail and Rural strategy will continue delivering significant benefits to our customers and shareholders in a challenging period of change and disruption,” McDonald says.
“By continuing to invest in our people, property, equipment and technology, we aim to build or bolt on additional capacity, scale and capability to support future growth and shareholder value.”