Wiseway Group reports to be well-placed to weather the uncertainty of global supply chain disruption and is confident in its lean business model and integrated operations to secure further competitive advantage.
The business recently unveiled its financial results for the six months ended 31 December 2021.
Revenue for 1H22 was up 11.8 per cent to $77.9 million compared to the previous corresponding period due to expansion in operations across both the perishables division and an increase in imports driven by e-commerce.
“This strong revenue growth reflects the ongoing success in building a high-growth integrated logistics business which has remained profitable amid a challenging market environment,” said Wiseway Managing Director, Florence Tong.
“Our expanded operations in Singapore and the United States are beginning to generate solid revenues, with organic growth driving a $2.5 million contribution across these channels, while Wiseway’s international footprint presents new growth opportunities, increased supply chain efficiencies and revenue synergies.
“The foundations are in place to capitalise on emerging opportunities within APAC’s fastest growing economies – while the expansion within the US addressable market is creating the potential for strong and consistent higher-margin revenue openings.
“Our focus on business divisions outside traditional dry outbound air freight services has seen a 55 per cent growth within the perishables segment, driven primarily by seafood, fruits and vegetables, meat and dairy product exports.”
Commenting on the continuing impact of Covid-19, Tong said that established strategic partnerships and a track record of innovation had allowed the Company to navigate the emerging vulnerabilities across the sector created by the pandemic.
“Wiseway is proud of its reputation across the industry as a resilient, collaborative and networked operator, with customers and partners turning to us to keep essential supply chains open through the provision of safe, reliable, and high-quality integrated logistics solutions.”
As Wiseway’s expansion efforts continue to build momentum, the company is focused on taking advantage of emerging opportunities and delivering immediate value to its customers and long-term value to shareholders.
The completion of Wiseway’s first cross-border acquisition in 1Q22 – that of Singapore-based air freight company TAF E-Logistics (Asia) Pte Ltd (TAF) – paves the way for increasing engagement within fast-growing markets including Malaysia, Indonesia, Philippines, Thailand and Vietnam, from its newly established hub within Singapore Changi Airport’s Airfreight Centre.
A program of recruitment and upskilling in North America is underway, following the opening of Wiseway’s first branch in the region at the end of 2H21. New hires have been added to an already high-calibre team of local expertise in Los Angeles and China to drive new organic business growth and extend our network across a market eager for solutions to the supply chain crisis which dominated so much of the 1H21 period.
“We are proud of our measured approach to these expansion efforts, creating on- the-ground teams – perfectly aligned with Wiseway’s culture and values – which are already delivering impressive revenues,” said Tong.
“These efforts are boosting the benefits of choice and value offered to our existing customers, while also engaging new markets to offer the holistic logistics solutions for which Wiseway is so associated.”
A mark of this industry recognition comes from the awarding of Wiseway Group’s 10th International Air Transport Association (IATA) licence across the Asia Pacific region – with Wiseway Shanghai International Logistics Company Limited’s new certification strengthening the Company’s network of strategic industry relationships and empowering it to deal directly with leading global airlines.
To support the company’s growth ambitions, two new non-executive directors have been elected to the Board over the period. Brandon Teo, former CEO of TAF, will focus on supporting the company’s global expansion strategy, while Robert McNutt has been elected as Chair of the Audit and Risk Committee and will provide guidance on the development of a scalable internal finance infrastructure.
Tong also elaborated on the outlook of Wiseway.
“Over the next three to five years, we believe Wiseway’s business model will provide the perfect platform from which to expand across the US and the Asia Pacific, from where we expect the majority of growth in the global freight industry will come,” she said.
“It is through the development of a network of interconnected business divisions, all united under Wiseway’s values and strategic vision, that we believe we will be best able to maximise the potential of these opportunities.
“Wiseway remains fully focused on continuing to provide services that are agile, dynamic and dependable to our customers, as their trusted partner within the supply chain of the future.”