SILK Logistics has reported revenue of $276.5 million for the first half of the financial year, representing a 9% increase on the prior corresponding period (PCP). 

It was underpinned by $23.6 million in (annualised) new business wins and an increase in trading customers from 569 to 594, excluding Secon Freight Logistics. 

Silk, a provider of integrated port-to-door landside logistics services, drove operational efficiencies, won new customers, and captured a greater share of existing customers spend.  

Underlying Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was $47.7 million, increasing 7.9% compared to the PCP.  

Underlying Earnings Before Interest, Tax, (EBIT) was $18.2 million, decreasing 7.6% compared to the PCP and underlying Net Profits After Tax (NPAT) was $7.6 million which was a reduction of 22.4% against the PCP. 

That was primarily driven by additional right-of-use (property lease) depreciation expense.  

The company says it remained resilient and was able to maintain underlying EBITDA margins because of its variable cost business model.  

Silk managing director and CEO Brendan Boyd said first half trading conditions were mixed and were “characterised by strong export volumes, improved warehouse handling and distribution margins, and new Secon customers onboarded”.  

“These positives were balanced with an extended inventory adjustment period, subdued import container volumes and sustained cost pressures,” Mr Boyd said.  

“Our ability to deliver on revenue and maintain our underlying EBITDA margin highlights the strength and agility of our business model.  

“We will continue integrating Secon and extending capability to other states which has already delivered cross-sell opportunities and new business wins.  

“We anticipate further recent Secon customer wins will onboard from the commencement of FY25.” 

Silk says it expects to deliver revenue and underlying EBITDA growth in FY24, subject to no further adverse changes in economic conditions and the assumptions underpinning its FY24 forecasts.  

Trading conditions are expected to remain challenging for the remainder of FY24.