Qube Holdings reported a 55 per cent fall in annual profit to $87.5 million in its full-year results. The company credited its diversified logistics operations and its agreement with Woolworths as factors that helped to mitigate the impact of the coronavirus pandemic.
On Tuesday 25 August, Qube Holdings (Qube) reported its full-year results for the year ended 30 June 2020 (FY20).
Despite the group’ s 55 per cent fall in annual profit to $87.5 million, its logistics revenue climbed 15.7 per cent to $823.2 million.
The remaining non-operating revenue came from its Patrick distributions as well as its infrastructure & other segments, including property.
The group highlighted Woolworths’ commitment to Moorebank Logistics Park (MLP) with agreements to develop highly automated regional and national distribution centres as a win for FY20.
A major milestone in the period was the announcement in June 2020 that Qube has exchanged two agreements for lease and development management agreements with Woolworths to develop new major warehouses across 26 hectares at MLP.
Both leases, comprising a 40,700 sqm national distribution centre (NDC) and a 34,600 sqm regional distribution centre (RDC) are on initial 20-year terms with 6 x 5-year options.
This will enable Woolworths to consolidate operations into unique purpose-built high bay facilities, leveraging world-leading advancements in retail, supply chain and semi-automated and automated technology.
According to Qube, MLP is expected to be the catalyst for increased tenant interest at MLP and reinforces the substantial value of this unique site. MLP is subject to NSW Government planning approvals.
Qube’s Board of Directors stated that the FY20 financial year was unprecedented in terms of the unexpected challenges and headwinds that impacted the Australian and global economies and the consequential impact on Qube’s markets and customers.
Qube presently expects that the generally weaker conditions it experienced in the second half of FY20 will continue in FY21 until the impact of COVID-19 subsides.
“Qube will continue to invest to support long-term earnings growth with total capital expenditure in FY21 currently expected to be around $500 million (excluding any potential acquisitions). The major capex items include locomotives and wagons for the BlueScope contract, precinct infrastructure, IMEX rail terminal and additional warehousing at MLP, as well as investment in new facilities and equipment across the Group,” Qube’s Board of Directors stated.