Regional and American expansion sows further growth opportunities
Integrated freight and logistics operators Wiseway has hailed its first full-year net profit after tax (NPAT) since listing in 2018.
Wiseway delivered an net profit after tax (NPAT) of $1.8 million, compared to a loss of $3.4 million in the prior corresponding period (pcp), representing a 152% turnaround.
That was from a revenue hike of 23.5%, from $102 million to $126 million.
Gross earnings (EBITDA) also rose 62% from $5 million to $8.1 million.
The company attributed the result to organic revenue growth across the business’s key segments as well as “prudent” cost management practices.
Revenue was driven by the key growing segments of perishables, imports, and road transportation, inclduing:
- 127% growth in the perishables division, including fresh produce, seafood, and dairy products
- 43% growth in sea freight, driven by stronger demand for perishable goods, namely fresh fruits
- 164% growth in imports and distribution, supported by the growing demand for e-commerce transactions
- an 87% growth in interstate road transportation, which has contributed $4.3 million to the company’s total revenue
- steady revenue from the core business of dry air freight which contributed $78.8 million to total revenue.
Operating expenses for the full year were $23.5 million, up 2.6% compared to the pcp.
“This milestone result for Wiseway, our first full-year net profit after tax since listing in 2018, reflects the strong business momentum in the Company and the benefits of our diversification strategy.” Wiseway managing director Florence Tong said.
“We have also continued our strategic investment program which has delivered scale, diversification, and enhanced growth opportunities for the business.
“Our robust investment program has been aimed at diversifying our income streams, developing our operating infrastructure, and expanding our team’s capabilities to drive growth in freight volumes and revenue.
“Diversification benefits delivered organic growth across Wiseway’s key divisions of perishables, road transportation, and imports and distribution, which collectively more than doubled in size over the past year and supplemented the steady performance in our core dry air freight business division.”
How the scenario looked around this time last year, here
Wiseway said its competitive advantage stems from strong partnerships with airlines, customs-bonded warehouses with advanced X-ray scanning facilities, and an extensive road transport network of company-owned trucks.
“Wiseway continues to leverage its scale and integrated platform capabilities to win new customers who are seeking a one-stop shop for their day-to-day logistics needs, in the face of pandemic-related challenges and tightening restrictions on shipping capacities.”
Wiseway noted it achieved milestones during the year by accelerating its global reach.
In June 2021, it announced the opening of a new branch in Los Angeles, establishing presence and services to the US market.
During the year, the company also bolstered its on-ground team in China while seeing organic growth in new markets in Asia, including Singapore, Japan, Indonesia, and Vietnam.
Expanded outreach beyond the established presence in China represents a key focus in the company’s geographic diversification strategy.
In August 2021, Wiseway completed its first cross-border acquisition of TAF, a Singapore-based airfreight company.
“The expansion of our US operations through establishing an in-country presence and building local capabilities will expand our access to promising opportunities in the US and North American markets,” Tong said.
“Our strategic acquisition of TAF, which has established a regional hub for Wiseway in Singapore will deliver valuable supply chain efficiencies and revenue synergies across our global network of shipping destinations and place us at the doorstep of Southeast Asia’s fastest growing economies including Indonesia, Thailand, Malaysia, and Vietnam.
“We are actively pursuing the opportunities inherent in these regions and globally, and we are confident that these milestones on Wiseway’s growth journey will provide the benefits of choice and value to our customers and deliver long term returns for shareholders.
“Our integrated and customer-centric logistics platform is one of our strong business pillars, and we will continue to invest in the modern technologies that make our operations more efficient and provide our customers with the enhanced experience they expect.
‘’During the period, we continued to invest in technology and software solutions that add valuable process efficiencies to online booking, cargo scanning, and real-time tracking.’’
Wiseway’s logistics operations showed resilience through the ongoing Covid-19 pandemic, underpinned by strong relationships with logistics partners and diversified freight services.
“Wiseway has developed the appropriate resource planning capabilities and risk management practices to sustain the growth momentum in the business, which prepares us well to address any supply chain disruptions,” Tong said.
“Our global expansion into the US and Southeast Asia reflects our robust strategy which combines a focus on organic growth with continuous exploration of new growth opportunities.
“Recent appointments of Mr Robert McNutt and Mr Brandon Teo to the Wiseway board have also added further global capabilities to our highly experienced Leadership Team.
“We are confident that our diversified business model, growing customer base, strategic industry partnerships, and expanding global footprint will enable us to benefit from the growing demand for integrated logistics solutions.”