Industry News

Lindsay Australia achieves spectacular revenue growth

Multi-modal refrigerated transport, logistics and rural supplies company Lindsay Australia has reported Earnings Before Interest, Taxes, Depreciation and Amortisation of $45.3 million, up 12.1 per cent year‐on‐year, for the financial year (FY) ended 30 June 2021.

In a recent statement, the company said its record revenue of $435.2 million had been driven by its rail diversification strategy and increased competitiveness as a fully integrated logistics provider.

The company’s Rural division has reportedly delivered record revenue of $137.9 million as investments in its store network and sales organisation boost results.

Rail expansion has lifted Transport division revenue to a record $297.3 million with 110 new refrigerated rail containers added to capacity in FY21, the company stated.

Operating cash of $51.7 million, up 35 percent year‐on‐year, with cash balance of $27.6 million at FY21 year end, allowed the Board to declare a final unfranked dividend of 0.5 cents per share, bringing total FY21 dividends to 1.7 cents per share.

Lindsay’s Transport and Rural divisions both contributed to the solid underlying earnings result following record revenue for the two operating segments.

At a Group level, FY21 revenue of $435.2 million was 5.7 per cent above the prior year’s record.

The cost discipline achieved during the period of growth delivered underlying profit before tax (PBT) of $13.8 million – a 24 percent increase on FY20.

A reconciliation of underlying to statutory results is provided in the Operating and Financial Review of the 2021 Annual Report. Lindsay also delivered a material lift in net operating cash flows, which rose 35 percent on the prior year to $51.7 million in the period.

Lindsay continued to invest in organic growth opportunities in rail, including capital expenditure of $12 million for the addition of 110 new refrigerated rail containers and associated equipment in FY21.

Across the company’s road fleet, $12.4 million was invested in fleet renewal, safety technology, trailer fleet expansion and other projects.

“FY21 has seen us deliver a strong result despite the challenges presented by what has been a highly fluid environment,” said Lindsay Australia CEO, Kim Lindsay.

“The outcome is testament to our employees who have remained committed to Lindsay as the company ensures Australia’s food supply chains remain unimpeded by the disruption of COVID‐19.”

Lindsay said the ongoing drive to diversify the company’s services and deliver new and innovative solutions had helped it mitigate the challenges and take advantage of opportunities that presented during the fast‐changing conditions seen over the year.

“We continue to see strong demand for both our road and rail services and will further expand our operational capacity in FY22 to meet these needs,” said Lindsay.

“The year demonstrated Lindsay’s disciplined approach to costs while growing our businesses. We will continue to drive organic growth forward in FY22 while maintaining a watching brief on any transaction‐led opportunities that may arise,” he said.

  1. Australian Truck Radio Listen Live
Send this to a friend