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- Goodman Group (GMG) has upgraded its earnings guidance for the 2021 financial year as online shopping drives demand for logistics and warehousing
- The industrial property giant today revealed an operating profit of $614.9 million for the six months to the end of 2020 — a 16 per cent improvement on the prior corresponding period
- Total revenue for the first half of the 2021 financial year was just under $1.9 billion
- Goodman Group said the strong financial results were driven by high demand for logistics in warehousing in light of increased online shopping globally
- As such, the company has upgraded its profit guidance for the 2021 financial year by 12 per cent to $1.2 billion
- Goodman has also flagged carbon-neutral operations by June 2021 — well ahead of the planned 2025 target
- Shares in the ASX 200-lister gained 1.35 per cent today to close at $17.22 per share
Goodman Group (GMG) has upgraded its earnings guidance for the 2021 financial year as online shopping drives demand for logistics and warehousing.
The industrial property giant bolstered operating profit to $614.9 million for the six months to the end of 2020 — an improvement of 16 per cent compared to the same time the year before.
Earnings per share jumped 15 per cent compared to the same time period in 2019, coming in at 33.1 cents in 2020.
Total revenue for the half-year was $1.89 billion.
While Goodman has certainly faced some challenges in light of the coronavirus pandemic, it seems the company has emerged as an unlikely winner from the global shift to self-isolation.
Company CEO Greg Goodman said an increase in global online sales was largely responsible for the stellar half-year performance.
“The logistics and warehousing sectors are playing a significant role globally in providing essential infrastructure to the digital economy,” Greg said.
“On average, global online sales increased by 30 per cent in 2020 and are expected to show strong growth over the next five years,” he said.
“We are experiencing strong demand from customers as they meet increasing consumer requirements and higher utilisation of properties.”
What’s next?
In light of the strong half-yearly results, Goodman Group has upgraded its profit guidance for the 2021 financial year by 12 per cent to $1.2 billion.
“Our business is performing strongly. The continuing shift in use and requirements from our customers, driven by the long-term trends in the digital economy, is supporting continued demand for our properties,” Greg explained.
Company management added that GMG is on track for carbon-neutral operations by June 2021 — well before the company’s 2025 target.
This shift to environmentally-sound operations comes from an increased target for solar power on rooftops from 100 megawatts to 400 megawatts by 2025, which will cost roughly $400 million.
“We view our approach to sustainability as one that leads to positive economic, environmental and social outcomes for our business, stakeholders and the planet,” Greg explained.
“Customer demand for strategically-located spaces close to consumers, that make a positive contribution towards a more sustainable world, has never been more important,” he said.
Shares in the ASX 200-lister gained 1.35 per cent today to close at $17.22 per share.
