First listed year defined by growth despite challenging global conditions
Revenue growth and facilities expansion has underscored Wiseway Group’s outlook one year after its ASX listing.
The company, specialising in Australia/China freight, reports gains in all business divisions, with revenue increasing by 15 per cent to $94.5 million, and an earnings before interest, tax, depreciation and amortization (EBITDA) of $2.8 million.
It notes revenue was up 27 per cent for its transport services, 11 per cent for dry cargo, and 217 and 317 per cent for its perishables and imports arms respectively – albeit the latter duo from a low base as emerging divisions.
CEO Roger Tong tells shareholders that despite challenging economic conditions, Wiseway was buoyed by its maiden year as a listed company.
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“Our first year as a listed company has been challenging given the volatile macroeconomic environment and slowing economic growth,” Tong says.
“However, our business has grown and I look forward to the years ahead with confidence.
“We have continued to invest in developing our global logistics platform to support long-term growth in freight volumes and shareholders returns.
“We have diversified our income sources and have formed a strong management and leadership team.
“We have positioned ourselves ready to capture the next wave of growth in logistics – perishables and imports.
“As we have expanded our business, it has also meant that we are not heavily reliant on a single source of income.”
That diversification counts eight business focuses: dry cargo exports; perishables exports; sea freight exports; imports; Airtruck domestic transport services; Airnex – GSA/CSA business; New Zealand; China.
KEY MILESTONES
“In executing the Company’s regional growth strategy during 2019 financial year, we made a number of key investments expanding our warehousing and operational capability in Australia, New Zealand and China,” Tong notes.
These include:
- opening a business development office in Shanghai
- expanding to NZ with a 2,500sqm Auckland facility
- expanding Melbourne operations with 2,400sqm facility at Tullamarine
- purchasing an 8,900sqm property adjacent to its existing Chipping Norton site to cater for future Sydney growth.
Wiseway notes it now has eight Australian facilities across Sydney, Melbourne, Brisbane, Adelaide and Perth, with an exclusive local agent operating in Darwin.
Its fleet has also grown to more than 100 vehicles, comprising B-Doubles, semitrailers, container and rigids.
Tong’s focus for the year ahead is on “continued profitability and cost control”.
“Our focus is to maintain our core growth in dry cargo export, whilst accelerating growth in our new divisions in order to diversify our income streams,” he says.
“We have built a highly capable team at Wiseway and their hard work will continue to place this company in a solid position to capture the opportunities that lie ahead.”
Despite his optimism, Tong signs off with a caution on global economic conditions.
“While we have laid a strong foundation and see many opportunities for future long-term growth, we do not operate in a vacuum.
“Global macro-economic conditions have been challenging, driven by geo-political events, including the US/China trade dispute, which has led to concerns over the outlook for global growth.”