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  • WiseTech Global (WTC) has reported a 23 per cent increase in revenue from $348.3 million in FY19 to $429.4 million in FY20
  • Additionally, WiseTech has seen a 17 per cent increase in EBITDA from $108.1 million in FY19 to $126.7 million in FY20
  • The ASX 200-lister attributes the growth to its CargoWise platform and its strategic acquisitions
  • WiseTech has secured more than 40 acquisitions in recent years which has helped to expand its global logistics platform
  • The company saw an increase usage of the platform due to the demand for digitalisation in the COVID-19 period
  • WiseTech closed off the 2020 financial year with $223.7 million in cash and $190 million of undrawn debt
  • Company shares are up a healthy 29 per cent and are trading for $26.84

WiseTech Global (WTC) has reported a 23 per cent increase in revenue from $348.3 million in FY19 to $429.4 million in FY20.

Additionally, the software solutions company has reported a 17 per cent increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) from $108.1 million in FY19 to $126.7 million in FY20.

This includes a one-time EBITDA benefit of $6.4 million from implementing the AASB 16 Leases which was offset in depreciation and finance costs.

WiseTech also announced a 197 per cent increase in statutory net profit after tax (NPAT) from $54.1 million in FY19 to $160.8 million in FY20.

However, underlying NPAT excludes the non-cash, non-taxed fair value gain of $110 million and $2.9 million net of tax. This resulted in the underlying NPAT for FY20 coming in at $52.6 million – the same as FY19.

Furthermore, the ASX 200-lister reported another increase in net profit after tax and amortisation (NPATA). NPATA increased by a slight three per cent to $64.6 million. This reflects increased depreciation and amortisation expenses in FY20 due to WiseTech investing more in research and development and new products.

“Notwithstanding the unprecedented challenges of COVID-19, our business has remained resilient, delivering solid revenue and EBITDA growth in FY20, in line with our guidance,” Founder and CEO Richard White said.

The total revenue growth of 23 per cent reflects the growth of WiseTech’s CargoWise platform and its strategic acquisitions.

In recent years, WiseTech has completed over 40 acquisitions which have complimented and optimised the company’s technology pipeline and its global footprint.

The company will use the acquired technologies to expand its CargoWise platform.

CargoWise delivered revenue growth of 20 per cent in FY20 due to gaining new customers and increased usage by existing customers such as DHL Global Forwarding and Denmark-based DSV.

New customers include Aramex, Seafrigo Group and top-25 global forwarder Hellmann Worldwide Logistics.

CargoWise is a global logistics platform that makes trade easy. It helps logistics companies manage changes in global trade, such as increasing tariffs, regulation and taxes, to surging eCommerce volumes and margin pressures.

COVID-19 reportedly provided the company with a long-term tailwind for growing its market share. This can be attributed to the demand for digitalisation across the global logistics market. Therefore, the demand for a platform like CargoWise increases.

Interestingly, the global logistics market experienced a slow down with lower transaction volumes in January and February due to the COVID-19 impact in China. This continued in March through to May due to COVID-19 making its way into Europe, the Middle East, Africa and the Americas.

By June however, moderate recovery began and momentum continued through to July. By the end of July, CargoWise user numbers were close to pre-pandemic levels.

Cash as of June 30 was $223.7 million. Additionally, the company has an undrawn debt facility of $190 million coupled with a $200 million accordion facility.

WiseTech assures it has significant financial headroom and flexibility and doesn’t plan on raising additional capital or debt.

Company shares are up a healthy 29 per cent and are trading for $26.84 each at 12:46 pm AEST.

WTC by the numbers
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