Toll Group, a subsidiary of Japan Post, has reported earnings before interest and tax (EBIT) of $119 million for the year ended 31 March 2018, an improvement of over 70% on financial year 2017.
Today’s result is the first time in three years that Toll reports growth in profit and revenue.
- Revenue of $8.2 billion, up $309 million compared to last year.
- Global Logistics reported an EBIT of $191 million, up 13%, off the back of strong performances in Asia and in key segments in Australia including government and defence, mining, energy and retail.
- Global Express delivered a $59 million turnaround compared to last year’s result, driven by an improved operating cost structure from transformation activities in network consolidation and productivity.
- Global Forwarding returned to profit, delivering close to a $9 million improvement to EBIT, despite a challenging market resulting in reduced margins. This was delivered through cost improvement initiatives, including exiting unprofitable countries, which have set the business up for future growth. Customer satisfaction reached record levels in FY18.
- For safety, we have seen a reduction of over 16% in total injuries in FY18 as a result of an increased focus and investment in this area, which will continue to be a priority in the coming year.
- Delivery of 1,000 new fleet and equipment, part of a six year $1.6 billion asset investment program. A further 1,500 of the latest in fleet will be added to our network this year. The incredible safety technology and fuel-efficiency of these assets will create new possibilities for our network with improved safety and maintenance costs as well as reduced emissions.
- Close to $600 million investment in capital expenditure on fleet, vessels, infrastructure and technology, which resulted an overall negative cash outflow for the year.
Toll Group Managing Director Michael Byrne said the performance marks the successful execution of the first year of Toll’s transformation strategy.
“Having successfully delivered on the first year of our overall three year transformation program, we are a leaner business, creating more value for our customers. This turnaround has been driven by the 44,000 strong Toll team who have done an outstanding job of implementing this program of rapid and significant change,” Mr Byrne said.
“While Toll is much stronger than this time last year, we remain vigilant. Our transformation continues, and our results to date show that our strategy is the right one for today’s markets and the long-term opportunities ahead.
We will continue to focus on delighting our customers, disciplined cash flow and being smarter with our costs.”