Freightways reports 9.5% profit drop, optimistic outlook

Freightways has reported a 9.5% decline in net profit after tax for the half-year, due to higher interest costs and higher amortisation.

The company's half-year result was also impacted by continued lower same-customer volumes in the express package division.

However, it saw positive market share gains and a marginal increase in volumes.

Top-line revenue growth for the half-year was driven by Allied Express in Australia, which contributed to a 12.4% increase.

Freightways' directors have declared an interim dividend of 18 cents per share, in line with the previous corresponding period.

Looking ahead, the company expects the current financial year to reflect higher-than-average labour cost increases.

It is confident in its ability to take advantage of opportunities with loyal customers and high-performing businesses.