NZ Post cuts are big gain for Freightways drivers
Freightways expects NZ Post’s move to three-day a week mail delivery to boost its market share.
The NZX-listed courier firm made a $43.3 million net profit for the year to June 30, up 4 per cent.
Declining mail volumes forced NZ Post to cut its delivery of standard mail to three days a week last month, leaving many posties out of a job.
But Freightways managing director Dean Bracewell said the DX Mail business had increased its postie delivery fleet. That was due to increased demand for overnight delivery of standard-priced letters, a trend which was expected to continue.
‘‘Some customers have anticipated the impact [of the NZ Post changes] and have moved to us earlier,’’ Bracewell said. ‘‘Most of it will occur over the next period.’’
Bracewell said the business was offsetting the decline in traditional mail volumes by increasing market share.
‘‘We’re growing the number of customers, albeit each customer is doing more by email than they did in the previous year.’’
The DX Mail service is a small part of the Freightways group, which also includes brands such as New Zealand
Some customers have anticipated the impact and have moved to us earlier. Dean Bracewell Freightways managing director
Couriers, Post Haste, Castle Parcels, and Pass The Parcel.
Bracewell said all businesses in every region had improved their performance, through both organic growth and the benefit of recent acquisitions.
The information management division, which includes online security and document shredding, contributed $122m of revenue, up 18 per cent on the prior period. Freightways has earmarked $20m for capital expenditure ahead.
Acquisitions during the year were funded by a mix of operating cash flows and borrowings from existing debt facilities.
The group would continue to seek out complementary acquisitions and alliances, Bracewell said.
The company declared a final dividend of 12.5 cents a share, an increase from 11.25c in the prior period.
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