One of the top integrated logistics providers in the Asia Pacific region, Wiseway Group Limited (Wiseway) announced their results for the six months to 31 December 2020 (1H21), symbolising a historic bounceback for the company.
Wiseway reported a 1H21 Net Profit After Tax (NPAT) of $3.4 million compared with a loss of $4.9 million in the previous corresponding period (pcp). Their Gross profit of $18.1 million was up 60%, and an uplift in gross margin by 100 basis points to 26% .
Capitalising on the high demand of logistics services during the COVID-19 pandemic has seen Wiseway’s inbound and outbound air freight increase its trading revenue by 25% to $45.4 million (pcp: $36.2 million) and its new business divisions more than doubling revenue to $24.0 million (pcp: $8.5 million).
In the new business divisions, there was strong growth from:
● Perishables up by 363% to $11.1 million
● Imports and distribution up by 139% to $4.3 million
● Sea freight up by 107% to $2.7 million
● Road freight up by 64% to $1.8 million
Chief Executive Officer, Mr Roger Tong, said the significant growth in revenue reflects their investment in team members, infrastructure and expanding their operating platform to deliver multiple and integrated logistics services to customers.
“The results are a turning point for Wiseway which, since the IPO, has successfully implemented its strategy of diversifying our business and our income streams. At IPO, only 5% of our trading revenue was from new business divisions. These divisions are now responsible for 34% of our trading revenue”, he said.
Wiseway has been improving operations through enhanced standard operating procedures and increasing investment in staff across the new divisions and imports [from] China and New Zealand – to meet demand for logistics services”, he said.
The investment in infrastructure and operating platforms includes bonded warehouses, accreditation for perishable operations and obtaining operational licences across Australia and New Zealand.
Commenting on the impact of COVID, Mr Tong said that its Australian and Asian customers had turned to Wiseway for help in finding solutions to the challenges of importing and exporting between Australia and Asia.
“We did this by leveraging our relationships with airlines, with shipping lines and our local trucking fleet and partners to ensure customers’ cargo got in and out of Australian markets through alternative routes. We also secured cargo space by chartering flights. This has significantly increased Wiseway’s capability to continue servicing demand for air freight”, he said.