Despite the delay in its commercial launch of Container Transport Optimization, this stock has held firm on the price pattern.
WiseTech Global Limited (ASX: WTC)
WiseTech Global delivered a strong performance in FY24, further cementing its position as a leader in logistics execution technology. The company reported a 28% year-on-year revenue increase to A$1.04 billion, driven by exceptional growth in its CargoWise platform, which achieved a 33% rise in revenue (19% organic) to A$880.3 million. Statutory NPAT grew 24% to A$262.8 million, while Underlying NPAT rose 15% to A$283.5 million. These results were underpinned by WiseTech’s 97% recurring revenue base and an industry-leading customer retention rate with attrition consistently below 1% for 12 years. Shareholders benefited from these robust results, with the total FY24 dividend increasing 10% to 16.9 cents per share, representing a payout ratio of 20% of Underlying NPAT. Total Shareholder Returns (TSR) for the year reached 25.9%, reflecting operational excellence and strategic growth.
WiseTech continues to execute its 3P strategy—Product, Penetration, and Profitability—with several key achievements. In FY24, the company secured five additional Large Global Freight Forwarder rollouts, including Sinotrans, the largest in China, and Nippon Express, the largest in Japan. This expands CargoWise’s adoption among the Top 25 Global Freight Forwarders to over 50%, with 52 rollouts either completed or in progress. Research and development (R&D) investment surged 41% to A$368.2 million, equating to 35% of revenue, enabling 1,135 product enhancements and the launch of three significant products: CargoWise Next, Container Transport Optimization, and ComplianceWise. Strategic acquisitions, including MatchBox Exchange, Sistemas Casa, and Aktiv Data, expanded WiseTech’s capabilities in container transport optimization and customs coverage, with its global customs platform now addressing over 75% of global manufactured trade flows. Operational efficiency also improved, with the company delivering A$40 million in annualized savings through its efficiency program, which has been expanded for FY25 with a new target of A$50 million. Looking ahead, WiseTech has provided FY25 guidance, forecasting revenue between A$1,200 million and A$1,300 million, representing 15%–25% year-on-year growth. EBITDA is expected to increase by 21%–33% to A$600 million–A$660 million, with margins projected at 50%–51%. The company’s strong pipeline of opportunities, particularly in the Asian region, supports this optimistic outlook. However, delays in the commercial launch of Container Transport Optimization, now expected in 2H FY25, may temporarily defer revenue. Despite this, management is implementing mitigating initiatives expected to generate long-term value for both customers and shareholders.
WiseTech’s strategic focus on the Top 25 Global Freight Forwarders and top 200 global logistics providers ensures it is well-positioned for sustained growth. As customer adoption deepens, incremental revenue streams from customs and warehouse implementations are anticipated. The company’s disciplined R&D investments and breakthrough products enhance its competitive advantage, ensuring it remains a leader in revolutionizing logistics technology. The December 2024 Investor Day will provide updates on product launches and strategic initiatives. Despite near-term challenges, WiseTech’s strong financial performance, robust market position, and clear growth trajectory support its status as an attractive investment in the logistics technology sector. Shares have appreciated in response to these developments, reflecting market confidence in the company’s long-term potential.
Source: Company’s Report
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