MOVE LOGISTICS GROUP LIMITED
FY24 RESULTS
29 August 2024
FY24 RESULTS SNAPSHOT
Results below aspirations; significant improvement targeted in FY25
INCOME | EBITDA | EBT | NLAT2 |
Normalised1 | Normalised1 |
$301.7m | $ 27.6m | $(25.7)m | $(48.1)m |
FY23: $347.7m | FY23: $47.4m | FY23: $(5.8)m | FY23: $(7.2)m |
LTIFR | CAPEX | GEARING | FREE |
15.82 | $1.8m | 38.4% | CASHFLOW |
$2.0m | |||
FY23: 14.72 | FY23 $19.5m | FY23: 17.2% | |
FY23: $0.7m | |||
- 2H24 Normalised EBITDA ahead of 1H24, in line with guidance
- Disappointing result reflecting underperformance exacerbated by recessionary environment
- Higher cost base due to inflation and investment into business in anticipation of economic recovery
- Slow to react to market changes and reduce costs
1. Normalised EBITDA and Normalised EBT exclude non-controlling interest and non-trading adjustments of $19.7m pre-tax related to asset impairment, settlement & restructuring cost (FY23: $1.7m). Including these, FY24 EBITDA and EBT was $7.9m and $(45.3)m respectively.
2. Attributable to owners of the company | FY24 Results Presentation | 2 |
Approx. 70% of MOVE's top 20 clients are in the Retail sector
Retail exposure includes:
Grocery, packaging, liquor, fuel
Other sectors include:
- Building products
- Aquaculture
- Infrastructure
FY24 Results Presentation
Depressed economic activity impacting revenue
Retail Sales Trend | Retail Fuel Spend |
June 19 | June 20 | June 21 | June 22 | June 23 | June 24 | Mar-19 | Mar-20 | Mar-21 | Mar-22 | Mar-23 | Mar-24 |
Residential building consents | Infrastructure pipeline |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | Jan-19 | Jan-20 | Jan-21 | Jan-22 | Jan-23 | Jan-24 |
Sources: Statistics NZ, Infometrics | 3 |
RESPONDING TO MARKET & BUSINESS CHALLENGES
Slow to react; accelerated change plan in place from 1 July 2025
HEADWINDS STRONGER FOR LONGER
- Recessionary environment with significant reduction in demand and customer losses
- Inefficient network structure and underperformance
- Inflation increasing cost to serve and putting pressure on margins
1H24: Customer activity continued to fall with significant reduction in demand across most sectors. Increased cost as investment was made in fleet, people and technology ahead of economic recovery.
4Q24: Identified priority need to move at pace to rightsize organisation and improve performance. Appointed independent advisors to validate assumptions and support development of change plan (replacing Project Blueprint).
1Q25: Moving at pace to accelerate change programme. Priority is cashflow generation and revenue recovery. Led by refreshed board and new executive team.
Remain confident in MOVE's inherent value, experienced team and strong customer offer
FY24 Results Presentation | 4 |
ACCELERATED CHANGE PLAN
Goals to improve financial performance, build positive cashflow and deliver value to shareholders, while continuing to provide great service to MOVE customers
• Maximise performance, productivity and utilisation | ||
RECALIBRATE THE | • | Network, fleet and team optimisation - retain ability to flex with |
BUSINESS | demand, while delivering quality customer service | |
• Strict cost controls and reduction | ||
• Continue to invest in sales capabilities | ||
PROFITABLE REVENUE | • | Accelerate profitable revenue opportunities |
GROWTH | • | Considered customer acquisition and diversification |
• | Dynamic pricing disciplines | |
BALANCE SHEET | • | Priority focus on cashflow generation |
RESILIENCE | • | Meticulous financial management |
FY24 Results Presentation | 5 |
STRATEGY FOR GROWTH
Our Vision: To be the preferred freight and logistics provider in Australasia
Our Mission: To keep our customers moving
Our Mantra: Customer,
Safety, Team
FY24 Results Presentation | 6 |
GOOD PROGRESS ON FUNDAMENTALS
END TO END SUPPLY CHAIN | INCREASINGLY MULTI-MODAL | STEP CHANGE IN CULTURE |
Strengthening our supply chain | Lowering cost to serve, providing | Moving from silo to group focus |
offering. Addition of Oceans trans- | optionality for customers and | across the organisation. Increased |
Tasman shipping service, | offering carbon reduction | collaboration to deliver end to |
enhanced metro services | opportunities | end supply chain solutions |
STRONG BRAND AND NATIONAL | INNOVATIVE SERVICES | INDUSTRY COLLABORATION |
NETWORK | ||
Seen as a strong contender by | Encouraging customer response to | Assessing opportunities for |
customers, supported by an | pilot of the trans-Tasman shipping | increased collaboration across the |
expanded sales team. Regional | service. Moving ahead with new | industry |
and metro network remains a key | time-charter vessel | |
strength for MOVE |
FY24 Results Presentation | 7 |
BUSINESS DIVISION
PERFORMANCE
FREIGHT
Disappointing result despite onboarding of new customers; Freight reset further hampered by adverse trading conditions
- Short term cost impact from investment into owner-drivers and fleet leases ahead of anticipated growth
- 4Q24: Commenced right sizing of business (cost base) to create a leaner, more efficient structure and improve operating leverage
- Restructure of business into clear LCL and FTL services, with focus on higher margin LCL business
- Priority on building revenue - positive sales activity delivering new customer wins in 2H
- Network offer (regional plus metro) is a key attraction for customers
- Bolstering trucking business with other modes of transport
- Improving returns expected as changes are bedded in and when trading conditions improve
FY24 Results Presentation
Revenue: $120.7m
Normalised EBT: $(18.6)m
Revenue | |||||
200 | 180.9 | ||||
146.0 | |||||
150 | 120.7 | ||||
NZ$m | |||||
100 | |||||
50 | |||||
0 | |||||
FY22 | FY23 | FY24 | |||
Normalised EBT | |||||
0 | |||||
-0.8 | |||||
NZ$m | -5 | ||||
-10 | -9.4 | ||||
-15 | |||||
-20 | -18.6 | ||||
FY22 | FY23 | FY24 | |||
9
CONTRACT LOGISTICS
Warehousing hard hit by reduced demand; Fuel and Tankers remains stable
Warehousing:
- Softer demand, increasing competition and customers insourcing - impacting on results, capacity below desired levels
- Non-cashgoodwill impairment of $12.7m
- Priority to fill available occupancy - number of new customer contracts now in place
- Customer diversification away from traditional reliance on large customer groups
- Well positioned to deliver quality, cost effective solution with national network and integrated freight offer
Fuel/Tankers:
- Stable performance despite continuing reduced light traffic activity (motorbikes, cars, vans) and corresponding spending on fuel
- Continue to look for opportunities to build on expertise and expand Tankers service offer
FY24 Results Presentation
Revenue: $137.0m
Normalised EBT: $0.6m
Revenue | |||||
180 | 154.2 | 159.4 | 137.0 | ||
150 | |||||
NZ$m | |||||
120 | |||||
90 | |||||
60 | |||||
30 | |||||
0 | |||||
FY22 | FY23 | FY24 | |||
Normalised EBT
10 | 7.8 | |||
8 | ||||
NZ$m | 5.4 | |||
6 | ||||
4 | ||||
2 | 0.6 | |||
0 | ||||
FY22 | FY23 | FY24 | ||
Excludes non-cash goodwill impairment of $12.7m
10