WiseTech Global founder Richard White is back at the helm as exec chair after a four-month hiatus, as the logistics business released a cracker of a first half of FY25, with revenue up 17% and net profit up a whopping 34% year-on-year.
An impressive rise in H1 revenue of 17% to US$381m for WiseTech (ASX : WTC) was largely driven by its CargoWise logistics product development that saw an increase in its customer base.
The numbers are:
- Net profit was up 34% to US$112.1 million
- Revenue was up 17% to US$381 million
- Operating cash flow was up 24% to US$202.7 million
- EBITDA was up 28% to US$192.3 million
- The interim dividend is up 31% to 6.7 US cents per share
Interim chief executive Andrew Cartledge said revenue and EBITDA results were driven by its 3P strategy.
“CargoWise's strong momentum continued with a Top 25 LGFF win [at] Nippon Express as well as strong growth from existing customers,” Cartledge said.
"Our next generation platform, CargoWise Next, has launched with a systematic phased rollout expected to start in 2H25.
"ComplianceWise is being used by customers with product development continuing to drive uptake into the future, and development of our third breakthrough product Container Transport Optimisation continues and we now expect an initial launch in the second half of FY25 in Australia.
“We continue to make strategic tuck-in acquisitions with BSM completed and ImpexDocs signed, both of which add to our capabilities in digital documentation, one of our six key development areas.”
White drives WiseTech back from the red
As COVID hit in 2019, supply chain logistics providers faced increasing pressures to improve visibility and cross-border execution, reduce costs, risks, and errors that decimated their margins.
Since then, improvements have been made and its stock has grown five-fold to trade above $125 per share as it cements itself as a global powerhouse in supply chain solutions. However, personal issues hit White and the company's share price.
White, the founder and biggest shareholder of the logistics software maker, stepped down as CEO and transitioned into a long-term consulting role with the newly created title of ‘founder and founding chief executive’ when scandal after scandal hit last year, sending the share price plummeting below the $100 mark.
White will oversee succession planning, including finding a permanent CEO and appointing more board members after four board members resigned earlier this week due to "differing views about Richard White’s role".
“I wanted to let you know that I am fully engaged and here for the long haul with invigorated vision, passion and a trove of new ideas to continue to build the company,” White said in an earnings call today.
"You have my absolute commitment to do everything within my power and ability to accelerate the business you have invested in and that has been so successful over the almost nine years since listing.
“It is also important to remember that WiseTech is a globally successful product-led company with over 30 years' experience."
With a market capitalisation of $32 billion, WiseTech Global was trading at $96.16, up 1.7% at the time of writing.
