Rising Costs Challenge Wiseway Despite Strong Revenue Growth
Wiseway Group has reported a striking 60% revenue increase to $148 million for the ten months ended April 2025, driven by strategic growth in inbound eCommerce and expanding international freight operations.
- 60% revenue growth to $148 million in ten months
- Strong gains in inbound eCommerce and Imports
- Expansion and scaling of USA operations post-KWT integration
- Shift from export air freight to sea freight to reduce costs
- Full-year revenue growth forecast between 53% and 63%
Robust Revenue Growth Amid Strategic Shifts
Wiseway Group Limited (ASX: WWG) has delivered a compelling trading update, reporting a 60% increase in revenue to $148 million for the ten months ended 30 April 2025. This growth builds on the momentum established in the first half of the financial year and underscores the success of Wiseway’s strategic repositioning efforts.
The company’s focus on inbound eCommerce has been a significant driver, alongside expanding international freight flows between Asia, Australia, and the United States. These initiatives have been complemented by a growing sales team and enhanced operational capabilities, positioning Wiseway as a formidable player in integrated freight and logistics.
Operational Highlights and Market Dynamics
Imports have shown particularly strong performance, buoyed by large account wins and the surge in inbound eCommerce. Wiseway’s USA operations continue to scale effectively following the successful integration of KWT, a move that has broadened its footprint and service offerings in a key market.
Interestingly, the company is witnessing a shift in freight volumes from export air freight to sea freight, reflecting clients’ efforts to manage and reduce international freight costs. Additionally, Wiseway’s perishables segment is gaining market share, benefiting from a compelling value proposition that resonates well with customers.
Profitability and Forward Outlook
While the company’s fixed cost base has grown faster than revenue, Wiseway expects profitability to improve due to operational leverage and efficiency gains. The management anticipates that EBITDA and profit will grow at a higher rate than revenue, signaling disciplined cost management and scalable operations.
Looking ahead, Wiseway projects full-year revenue growth in the range of 53% to 63% compared to FY24’s $112 million. This optimistic outlook is anchored in continued expansion across imports, eCommerce, USA operations, and perishables markets.
Chief Operating Officer and CEO designate Ken Tong emphasized the sustained momentum across divisions, highlighting that the company is on track to deliver record results with a growing and efficient revenue model.
Bottom Line?
Wiseway’s strong growth trajectory and strategic execution set the stage for a pivotal year ahead, with profitability gains closely watched by investors.
Questions in the middle?
- How will Wiseway manage the rising fixed costs to sustain profitability?
- What impact will the shift from air to sea freight have on margins and service levels?
- How significant will the USA market expansion be to Wiseway’s long-term growth?
