WiseTech Global (ASX:WTC) reports total 1H23 revenue of $378.2 million is 35% higher than the previous corresponding period as the company’s acquisitive growth strategy extends its reach into new markets.
The multi-national firm, which provides logistics and software solutions to a range of sectors including mining and natural resources, has announced its financial results for the 6 months ending 31 December 2022 (1H23).
The company reported total revenue of $378.2 million, up 35% on 1H22. Its 1H23 statutory net profit after tax (NPAT) of $109 million was up 41% and Underlying NPAT of $108.5 million was 40% higher, delivering underlying earnings per share (EPS) of $0.332 per share.
In its FY23 guidance for recent M&A activity, WiseTech Global anticipates FY23 revenue of between $790 million and $822 million (representing revenue growth of 26%–30%) and EBITDA excluding M&A costs of between $380 million and $412 million (representing EBITDA growth of 19%–29%).
WiseTech is a developer and provider of software solutions to the logistics execution industry globally. The firm’s spatial (or geospatial) technology is widely adopted in many industries, particularly in mining. Spatial technology refers to software or hardware that assists with mapping of the earth through the study of position, area, and size of locations.
Addressing the results, WiseTech founder and CEO Richard White says: “Our strong first half performance highlights the continued resilience of our business model and progress of our 3P strategy (product; penetration; and profitability). Our ability to deliver strong growth in revenue, earnings, and free cash flow, in a softening global macroeconomic climate, is the result of a tremendous effort by our teams around the world and we’re immensely proud of the progress we are making towards our vision of being the operating system for global logistics.
We continue to see strong demand for our products from the world’s largest freight forwarders, having secured four new global rollouts and three organic global rollouts since July last year. CargoWise is rapidly becoming the industry standard. Importantly, in January this year, we also secured our first global customs rollout with Kuehne+Nagel, the world’s largest global freight forwarder.
“This is a testament to the success of our foothold acquisition strategy and our customs product development”
This is a testament to the success of our foothold acquisition strategy and our customs product development, as we build out a global customs engine. We now have 47 large global rollouts in place, including 11 of the Top 25 Global Freight Forwarders, with a significant pipeline of new customers and the opportunity to deepen our penetration with existing customers.”
The CEO adds that to supplement the company’s organic growth, it uses targeted acquisitions to accelerate the development of the CargoWise product and give the firm further reach in the global logistics ecosystem.
Meanwhile, WiseTech notes 2 further tuck-in acquisitions in the first half in Bolero and Shipamax, and recently announced the strategic acquisitions of Envase Technologies and Blume Global, both leading landside logistics businesses, which together extend and strengthen the company’s position in 1 of its 6 key development priority areas.
The company reports CargoWise revenue in 1H23 grew by $96.1 million, or 50% on 1H22, to $289.2 million. Organically, CargoWise revenue grew by $88.3 million or 46%, reflecting growth from existing and new customers.
WiseTech says cash at hand as of 31 December 2022 was $489.9 million, demonstrating the highly cash generative nature of the business and strength of its underlying operating model. 1H23 operating cash flow of $203.4 million was up 51% on 1H22 and free cash flow of $137.8 million was up 53% on 1H22.
The firm’s customers include more than 18,000 of the world’s logistics companies across 173 countries, including 43 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders worldwide.
White concludes: “WiseTech is a business that continues to grow and create value. Our CargoWise offering, which we expand and enhance through our own product development and our acquisition program, is enabling us to drive considerable momentum. This is underpinned by our global rollouts, stemming from an investment of over $775 million in research and development over the last 5 years.”
Write to Adam Orlando at Mining.com.au
Images: WiseTech Global Ltd & iStock
