MOVE 1H24 Trading Update

Company Announcement
22 December 2023

MOVE 1H24 TRADING UPDATE
Transport and logistics group, MOVE Logistics Group Limited (NZX/ASX: MOV), has provided a
trading update for the six months ending 31 December 2023 (1H24).
In summary:
• Economic and sector headwinds continue to impact on customer volumes, costs and growth
opportunities, with softer 1H24 result expected.
• Comprehensive cost out programme has been escalated, to drive efficiency and operating
excellence.
• 1H24 Normalised EBITDA is expected to be between $11.5m and $12.5m, reflecting lower
customer demand, the ongoing re-set of the Freight business, the start-up of the Oceans
service and reduced Fuels volumes. In addition, some project work undertaken by the
Specialist division has been delayed and pushed into future periods. These projects remain
ongoing.
• Second half year expected to benefit from increased new business leads and participation in
RFP processes for MOVE’s Freight and Logistics businesses, and as gains start to be realised
from Project Blueprint initiatives commenced in 1H24. MOVE will provide a further update
when it reports its half year results in February 2024.
Economic and sector headwinds continue to impact on the sector, with inflationary cost pressures
and slowing consumer spending dampening down demand and driving competitive pricing pressure,
particularly for Freight and Warehousing. Retail and construction have been particularly hard hit,
both of which are important customer sectors for MOVE.
MOVE is continuing to execute on Project Blueprint, a dual pathway of short and long term
initiatives to reshape and strengthen the business, and drive growth. Given economic recovery is
taking longer than anticipated, a comprehensive cost out programme has been escalated to drive
efficiency and operating excellence.
As previously advised, the re-set of the Freight business is ongoing with a short-term reduction in
earnings as it transitions towards a more efficient, higher margin business model. The business is
being right sized to create a leaner, more efficient structure which can be scaled as the growth
strategy takes hold. The priority is on rebuilding activity, with a restructured sales team led by a
new National Sales Manager generating increased new business leads and participation in RFP
processes for MOVE’s Freight and Logistics businesses.
The pilot of MOVE’s new trans-Tasman shipping offer this year has been faced with challenges but
has demonstrated there is good potential customer demand. A number of costs associated with the
pilot programme will be recognised in the FY24 results. The trans-Tasman service and opportunities
are being assessed to ensure value is maximised as the company focuses on core business and
following MOVE’s withdrawal from a proposed coastal shipping service.

CEO Craig Evans said: “Our initial focus is to recover to prior performance levels, and then longer
term, to exceed and outperform. Frustratingly, the speed at which we have been able to execute on
our growth strategy has been hampered by headwinds affecting the logistics sector, which have
been longer and tougher than anticipated. We continue to tightly manage all areas within our
control and are positioning ourselves to take advantage of increasing demand as economic
conditions improve.
“Despite current trading conditions, we continue to see real growth opportunities for our business
and are moving at pace to take advantage of these. MOVE’s key commercial stakeholders remain
supportive of the company’s strategy and ongoing execution of Project Blueprint. We are positive
about the future for MOVE and our teams remain committed to delivering solutions that meet and
exceed our customers’ expectations in these challenging conditions.”
ENDS

For further information, please contact:

Craig Evans
Chief Executive Officer
Phone: +64 274 353 897
Email: craig.evans@movelogistics.com
Lee Banks
Chief Financial Officer
Phone: +64 27 525 2876
Email: Lee.Banks@movelogistics.com

For media assistance, please contact: Jackie Ellis t: + 64 27 246 2505 e: jackie@ellisandco.co.nz

About MOVE Logistics Group Limited (MOV)
MOVE is one of the largest domestic freight and logistics businesses in New Zealand, with a
nationwide network of branches, depots and warehouses.