Toll Group posts solid results

Transport and logistics giant Toll Group has released details of its performance for the first half of the 2013/14 financial year

It’s ‘steady as she goes’ at Toll Group, whose six-month results to December 31, 2013, underline the company’s stable financial footing.

The results outlined in the company’s recent report were in line with those of the previous corresponding period, with total revenue dropping only marginally (down 0.5 per cent) from $4.546 billion to $4.523 billion.

Net profit after tax (before non-recurring items) was up 1.4 per cent to $175.9 million, while net profit after tax (after non-recurring items) fell by 10 per cent, to $175.9 million. Interim dividends per share rose by 0.5 per cent, to 13 cents.

Within the broader Toll Group figures Toll Global Logistics emerged as a particularly strong performer, posting a 5.5 per cent increase in sales revenue ($681 million) and an 11.9 per cent rise of earnings before interest, tax, depreciation and amortization ($69.6 million).

According to a Toll Group statement, the growth came from a number of areas.

“Toll Global Logistics grew both earnings and revenue with improved performances from businesses in Asia and from new customer wins in Customised Solutions and Contract Logistics in Australia,” states the release.

Toll Group Managing Director, Brian Kluger, said the firm was in good shape to meet the challenges of today’s market.

“This result has been well supported by progress in improving productivity and reducing costs,” he said.

“While we have continued to do well retaining key customers and winning new contracts, the competitive environment has maintained pressure on margins. We remain disciplined in the returns we require when bidding for new work and this has limited revenue growth in some markets.

“We remain committed to ensuring we build on our position as Australia’s leading transport and logistics provider through continuing our targeted capital expenditure and investing through the economic cycle to position ourselves for future recovery in market conditions.”

Kluger said Toll Group was on track for future earnings growth.

“Overall, assuming no material change in the external environment, we continue to expect underlying earnings before interest and tax for the 2014 financial year to be ahead of the prior year,” he said.

Toll Group posts solid results

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