The Australian logistics company has just released its financial results from Q3 2023, showing favourable growth as a result of strategic planning post COVID.
Wiseway Group Limited, one of Australia’s leading integrated freight and logistics operators, has this week announced favourable financial results for the six months ended 31 December 2022.
The Company says it has seen an encouraging turnaround in its Australian business compared to the previous six-month period between.
The results also how promising returns on the company’s efforts to diversify its revenue streams. With a positive rebound in the Wiseway’s imports operations and growth in its perishables divisions.
Overall the company says it saw solid growth last year with Wiseway’s core Australian divisions, reporting a EBITDA of $2.4 million. Within the Australian divisions, revenue growth has been led by perishables (+79 per cent increase), sea freight (+23 per cent increase) and imports (+23 per cent increase)
While there was mixed profitability in Wiseway’s overseas divisions, as the Company continues to invest in building its global network.
Wiseway has benefitted from the improved business environment both in Australia and globally, thanks to the return to normalcy after the COVID-19 pandemic as well as China’s easing of strict Covid zero policies.
The company also says its focus on client relationships, as well as cost management and margin improvement have also contributed to the positive results.
Speaking on the financial statements, Wiseway Co-Founder and Managing Director Florence Tong says it is encouraging to see their strategy pay off.
“There has been a significant turnaround in profitability compared to the previous period,” Tong says.
“Our Australian business has consistently performed and delivered profits and value for our shareholders. It is pleasing to see the Company’s imports operations rebound and our perishables divisions doing very well throughout the period.
“Wiseway’s overseas operations have seen mixed results in 1H23, as the Company continues to invest in building its global network. Achieving growth and profitability in Wiseway’s overseas operations will be a key focus for management in the coming months.”
Now that thigns have started improving the company says it can focus on other aspects of the business such as revenue alignment and cost management.
Wiseway’s board and executive team underwent some changes early this year. The composition of the board was altered, and Mr Ken Tong was appointed as its Chief Operating Officer and Company Secretary.
Tong says with COVID behind them things look to continue improving from here on.
“Management believes that business performance will improve in the next 12 months as these impacts abate,” Tong says.
“Importantly, we are seeing early indications that sales volumes are rising across the board. With China’s reopening this calendar year we should see a marked pick-up across relevant sectors.
“Furthermore, management has started implementing measures to cut costs and improve productivity and margins, following investments for growth in recent years. These initiatives include rightsizing assets and staff, consolidating contracted services and exploring additional financing opportunities.”
Wiseway says it made the right strategic decisions in the second half of last year which have results in the favourable results they are now seeing.
Furthermore, the company says it is not relaxing yet and they will be keeping a close eye on all revenue streams and associated costs on a weekly basis and make any adjustments needed as the year develops.
Tong says an improved political environment as well as growing consumer spending should see the company continue its upward trajectory into the immediate future.
“The Company has benefited from a strengthening of geopolitical relations between Australia and China under the new Australian federal government,” Tong says.
“This, combined with China’s reopening from its ‘Zero COVID’ policy, has resulted in Wiseway observing encouraging increased demand from China for Australian products and for the Group’s highly regarded integrated freight and logistics offerings.
“Wiseway’s strategic investment program has also enabled the Group to reap the benefits associated with shifts in consumer preferences and the ongoing rise of the e-commerce industry.
“Our proprietary technology is the foundation of an ongoing integration of our operations with those of our business partners and other entities across the supply chain.”