Silk Logistics Holdings has announced its results for the financial year ending 30 June 2024 and an outlook for the years ahead.
Silk reported a revenue of $556.4 million in FY24, an increase of 13.9 per cent year-on-year (YOY) which was underpinned by $55.7 million in annualised new business wins and the acquisition of Secon Freight Logistics in September 2023 which expanded the company’s capabilities into bulk logistics.
According to Silk, it achieved this despite challenging external trading conditions.
Silk achieved underlying earnings before tax, depreciation and amortisation (EBITDA) of $95.4 million – a 11 per cent improvement over the year prior due to the ability to maintain margins through the expanded share of wallet across its diversified customer base.
Underlying EBIT was $34.8 million, a decrease of 1.4 per cent YOY.
Silk Logistics Holding Managing Director and CEO, John Sood, said the resilience and agility of the business and its operating model was highlighted in these results.
“We managed an unexpected CEO succession, successfully integrated an important strategic acquisition and delivered on revenue, EBITDA and EBIT guidance provided in February 2024 despite ongoing external challenges,” he said.
“Our long-term customer relationships with average customer tenure of approximately 7.3 years is a testament to our strong customer service ethos.
“Strategically, we believe there is significant latent demand in the bulk containerised segment and as we further integrate Secon into the business it will facilitate driving future organic growth.”
Sood said that while the sector continues to experience headwinds, he is encouraged by the momentum observed in the initial months of FY25, including a number of new customer contracts.
“Organic growth is our core focus for the upcoming year and we will continue Silk’s disciplined approach to operations whilst enhancing value through investments in our technology and integrating our recent acquisitions,” he said.
Looking ahead, Silk is now targeting $1 billion in revenue in FY30.
Sood said the target is based off of Silk’s current run rate of organic growth, and assumes no further acquisitions at this stage.
Silk also intends to invest in further growth initiatives as they arise and meet the company’s capital return requirements.
“This includes capitalising on the attractive national growth platform afforded us by the recent Secon acquisition,” Sood said.
During FY25, Silk expects to continue its track record of delivering solid revenue and EBITDA growth, subject to no significant deterioration in economic conditions.
It will focus on further organic growth through the delivery of great service to drive greater share of customer wallet and new customer contracts.
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