LOGISTICS software giant WiseTech Global reported typically big gains in its first-half results for the 2021 financial year.
The company’s total revenue was $238 million, an increase of 16% on the same period last year, and its earnings before interest, taxes, depreciation and amortisation (EBITDA) was $89.2 million, up 43%.
WiseTech founder and CEO Richard White said, “Notwithstanding the subsequent waves of COVID-19 in major markets, our business has continued to deliver solid revenue and EBITDA growth in 1H21.
“Our strategic focus on product, penetration and profitability has enabled us to continue to expand the CargoWise ecosystem, increase our market penetration, with eight new global customer roll-outs signed since 1 January 2020 and deliver 61% growth in Underlying NPAT, demonstrating the step change in operating leverage that we are achieving by extracting acquisition synergies and implementing organisation-wide efficiencies.”
The company said it saw volatility in global logistics markets during the early stages of the pandemic, with a marked slowdown in the movement of goods across all modes of transport. By mid-2020 however, the company started to see a recovery, with momentum improving and resulting in 1H21 CargoWise shipment transaction numbers up 19% on 1H20.
Mr White said there is evidence of a goods-led recovery in global trade with consumer spending switching form services to physical goods in response to COVID-19 mobility restrictions.
“This has had the effect of boosting demand for manufactured goods and global trade, driving an acceleration in logistics providers looking to replace legacy systems with integrated global technology such as CargoWise,” he said.
“This enables them to better plan, visualise and control their global operations, mitigate risk and more efficiently manage cross-border regulatory compliance.”
Mr White said the pandemic provided the impetus for an acceleration in the longer-term structural shift towards consolidation, integration and digitisation of global logistics and supply chains.
“The recently announced proposed takeover of Kerry Logistics by SF Holdings and DSV’s public comments about its increased appetite for M&A following its successful UTi and Panalpina acquisitions are evidence of this trend,” he said.
