Full Year Results to 30 June 2025 and Final Dividend
Reporting for the period ending 30 June 2025
FY25 Results
Presenters:
Mark TroughearStephan DeschampsAaron StubbingNeil Wilson
Chief Executive OfficerChief Financial OfficerGeneral Manager, EPGeneral Manager, FRW
Read this presentation with the financial statements: The financial results in this presentation should be read in conjunction with the financial statements for the year
ended 30 June 2025, which can be found in the Freightways full year results announcement available on the NZX and ASX platforms.
No offer or investment advice: This presentation is for information purposes only. It is not a product disclosure statement, prospectus or investment statement.
Nothing in it constitutes an invitation to subscribe for shares, securities or financial products in Freightways, or financial product, legal, financial, investment, tax or any
other advice or a recommendation. Any investor should consult their own professional advisors and conduct their own independent investigation of Freightways and the
information contained in this presentation, including any statements relating to the future performance of Freightways. The information in this presentation is given in
good faith and has been obtained from sources believed to be reliable and accurate at the date of this presentation.
Our non-GAAP information: Certain items of financial information included in this presentation are "non-GAAP" financial measures. These non-GAAP financial
measures do not have a standardised meaning prescribed by New Zealand Accounting Standards and so may not be comparable to similarly named measures
presented by other entities. Freightways believes that these measures provide useful information in measuring the financial position and performance of the
Freightways business.However, undue reliance should not be placed on non-GAAP financial measures included in this presentation.
Forward looking statements: This presentation may include forward‐looking statements regarding future events and the future financial performance of Freightways.
Such forward‐looking statements are based on current expectations and involve risks and uncertainties. Freightways cautions investors not to place undue reliance on
these forward-looking statements, which reflect Freightways’ views only as of the date of this presentation. Actual results may be materially different from those stated
in any forward‐looking statements.Freightways gives no warranty or representation as to its future financial performance or any future matter. The information in this
presentation is current at the date of this presentation, unless otherwise stated. Freightways is not under any obligation to update this presentation after its release,
whether as a result of new information, future events or otherwise.
Disclaimer: None of Freightways, its affiliates, or their respective advisers or representatives, give any warranty or representation as to the accuracy or completeness of
the information contained in this presentation, and exclude their liability to the maximum extent permitted by law.
Disclaimer
Presenters and Agenda
MARK TROUGHEAR
Chief Executive Officer
Overview, Divisional
Performance,
and Outlook
Financial Summary and
Capital Management
Divisional Strategy
(Information Management)
Divisional Strategy
(Express Package)
STEPHAN DESCHAMPS
Chief Financial Officer
AARON STUBBING
General Manager – EP
NEIL WILSON
General Manager - FRW
Freightways FY25 Results
3
>Solid result in a tough economic environment
>Our diversified business model provides resilience
>There are organic opportunities in all lines of business,
across 3 horizons
>Well-positioned balance sheet to mitigate risk and take
advantage of current market conditions
>Proven track record of capital allocation – Australia is a
foundation for growth
>We expect to grow revenue and earnings in FY26
Overview
Freightways FY25 Results
4
Revenue
6.6%
to $1.3b
*EBITA growth
6.3%
to $158.4m
NPAT grow th
12.9%
to $80.1m
*EBITA margin
12.3%
(same as FY24)
Capex/Revenue
2.3%
From 2.6% FY24
Net Debt
(6.4%)
Dividend (FY)
8.1%
To 40c ( 37c in FY24)
* Non-GAAP (Generally Accepted Accounting Principles)
Financial Highlights
Cash generated from
operations
7.9%
Freightways FY25 Results
5
Temperature Controlled
NZ EP Item Growth
0.4%
for FY25
3PL utilisation
Auckland 100%
Ruakura 83%*
Christchurch 93%
* at peak in FY25
Same customer
transport volume
(5.0)%
For FY25
Express Package
32% Digital growth
(AU)
6.5 million boxes in
storage
(NZ + AU)
Information Management
Tonnes of paper
collected and
recycled
56,800
Waste Renewal
FY25 Operating Metrics
AU EP Item Growth
11.6%
for FY25
Freightways FY25 Results
6
>New Zealand GDP has reportedly lifted from its recent
recessionary lows:
•EP Volumes in NZ starting to recover in the second half,
although the pace remains slow
•Mixed performance by sector with primary industries an
outperformer (FRW has less primary exposure)
•Regional disparity with the North Island underperforming
the South Island
>Australia GDP remaining subdued:
•EP Volumes saw solid growth in FY25, expanding in second
half, despite continued subdued conditions
•Expectations for slowing GDP in near-future driven by trade
tensions and slow rate cycle
>Labour Market in NZ now at 5.2% unemployment. Australia
unemployment steady at 4.2%
Market Backdrop
Freightways FY25 Results
7
Financial Summary
& Capital Management
Stephan Deschamps
Chief Financial Officer
Freightways FY25 Results
8
Our revenue has increased 8.9% per annum since listing
Freightways Group Revenue increased more than 5x from FY05 to FY25
0
200
400
600
800
1,000
1,200
1,400
FY05FY06FY07FY08FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
$M
Revenue
REVENUE (FY2005 - FY2025)
CAGR: +15.4%
CAGR: +7.0%
Freightways FY25 Results
9
Positive bottom line trend in difficult environment
Notes
FY25
$m
FY24
$m
Change
%
Operating Revenue
1,289.61,209.26.6
EBITA (non-GAAP)1
158.4149.06.3
EBITA margin
12.3%12.3%
NPAT2
80.170.912.9
NPAT margin
6.2%5.9%
Basic Earnings Per Share (cents)
44.739.812.3
Notes:
•Results in this table after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16
1.Operating profit before interest, tax and amortisation
2.Net profit after tax
FY25 Performance Overview:
•Economic environment still difficult in NZ, Australia
more buoyant
•NZ same-customers weakness mitigated by new
business and price increases
•Cost base under less inflationary pressure than
previous two years
•Net debt reducing, allowing for faster increase of NPAT
Freightways FY25 Results
10
FRW EBITA margin stable with improvement of EP businesses
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
*FY20*FY21*FY22FY23FY24FY25
$000
Earning Before Interest, Tax & Amortisation
EBITAEBITA Margin
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
*FY20*FY21*FY22FY23FY24FY25
$000
Net Profit After Tax
NPATNPAT Margin
Note:
* For consistent comparison, EBITA and NPAT for FY20, FY21 and FY22 on this page
exclude net non-recurring expenses of approximately $9m, $23m and $4m,
respectively. The non-recurring expenses include items such as change in fair value of
contingent considerations (earn-out accruals), impairment of intangible assets and
inventory write-down.
Margin performance:
•Group margin stable following a period of heightened
inflation, but different trends impacting
•Most EP businesses have seen margin improvements,
supported by price increases above labour inflation
•Larger Australian business, with lower margins,
impacting average
•BCD margin better but still below where we want it
•IM division impacted by TIMG NZ (Census in FY24) and
Shred-X. Significant work is going into improving Shred-X
(LHS)(RHS)
(LHS)(RHS)
Freightways FY25 Results
11
Strong Cash Flows generation supported debt reduction
35,653
243,111
(34,703)
(34,761)
(28,973)
(4,813)
1,600
(68,098)
(5,092)
400
(57,698)
(3,365)
43,261
$000
-
50,000
100,000
150,000
200,000
250,000
300,000
Cash Movements
IncreaseDecreaseTotal
Freightways FY25 Results
12
Leverage below the mid-point of our target range
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
FY20FY21FY22FY23FY24FY25
Number of times
NZD’000
Capex & Net Debt to EBITDA
Capex (including software)Net debt to EBITDA
(LHS)(RHS)
Freightways FY25 Results
13
2025
2.4x
2024
2.7x
post IFRS16
* cps = Cents Per Share - Final dividend of 21cps, fully imputed in NZ, 46% franked in Australia
FY25 Dividend on the Rise
0
10
20
30
40
50
200520062007200820092010201120122013201420152016201720182019202020212022202320242025
Dividend (cps)
FY25 Dividend
40cps
FY24 Dividend
37cps
Freightways FY25 Results
14
Divisional Performance
Mark Troughear
Chief Executive Officer
Express Package & Business Mail
Freightways FY25 Results
15
Notes
FY25
$m
FY24
$m
Change
%
Operating Revenue
1,061.0999.16.2
EBITA (non-GAAP)1
143.3128.411.6
EBITA margin
13.5%12.9%
NPAT2
86.776.613.2
Notes:
•Results in this table are after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16
1.Operating profit before interest, tax and amortisation
2.Net profit after tax
FY25 Performance Overview:
>New customer wins helped to achieve revenue growth in
all businesses
>Same customer volume was flat in a tough NZ
environment
>Pleasing uplift in margin despite soft same-customer
trading
>Allied achieved strong market share growth and leverage
through the cost base to improve margins
>Big Chill earnings improved, noting:
‒Transport volumes were soft,
‒Demand for 3PL services has been strong
>DX Mail produced a strong result with record volumes in
FY25, expanding their network off the back of market
share gains
FY25 Express Package & Business Mail Result
Freightways FY25 Results
16
635,448
689,230
911,144
999,093
1,059,012
16.5%
15.0%
13.3%
12.1%
12.6%
10%
12%
14%
16%
18%
20%
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
FY21FY22FY23FY24FY25
RevenueEBITAEBITA margin %
Note: All numbers are on a pre-IFRS16 basis.
NZD’000
Express Package & Business Mail Reversing the Margin Trend
(LHS)(RHS)(LHS)
Freightways FY25 Results
17
New Zealand:
>Item growth of 2.5% from
market share helped offset
previous Temu volumes.
>Strong growth from global
eCommerce.
>Oversize courier freight
achievedits $10m revenue
target.
>Well executed GRI netting
3.6% and incremental PFE
for outer area local
deliveries.
H2 VolumesFY25 Volumes
H1 Volumes
1.5%1.9%
0.4%
Temu contributed to 1.6% of FY24
volume (all in H1)
FY25 NZ Express Package Volume (excl BCD)
Freightways FY25 Results
18
202020212022202320242025
NZ Express Package - Items
H1H2
FY20FY21
FY22FY23
FY24FY25
H2 VolumesFY25 Volumes
H1 Volumes
8.5%15.2%
11.6%
Australia:
>Allied has performed well
over FY25. With a new
management team, the
business has further
improved service quality,
re-signed key customers
and secured meaningful
new business wins
>Improvement in operating
margins achieved through
volume, pricing and a
focus on operating
efficiency
FY25 AU Express Package Volume
FY20FY21FY22FY23FY24FY25
AU Express Package - Items
H1H2
Freightways FY25 Results
19
Benefits:
•Allows Allied to accept all customer volumes available
(automation volumes were previously capped at peak)
•Improved sort accuracy – misdirects reduced by 25% since
implementation
•Better revenue capture - $2m extra margin generated in FY25 by
having accurate item sizes
•As volumes increase, labour cost/per item decreases
Overview:
•Over the last two financial years Allied Express has added new
automated sortation systems to meet demand at their largest
depots in NSW and VIC
Initial Set Up Costs:
•NSW A$11m, operational in October 2023
•VIC A$10m, operational in July 2024
Freightways FY25 Results
20
Allied Express Automation | Case Study
Benefits:
•Ruakura doubled Big Chill’s nationwide cold-storage capacity
•Provided more efficient storage and delivery solutions to customers
both via inland port and direct into “golden triangle” delivery points
•Generated incremental transport revenues
•New site has relieved pressure of existing operational sites at
Putaruru and Auckland
•Strong demand for further 3PL expansion from customers, currently
assessing best locations for future expansion
•Additional storage capacity helps mitigate risks in the event of
network disruptions
Overview:
In October 2023 Big Chill opened their new 3PL superhub at
Ruakura. The 21,200m2 facility holds up to 16,500 pallets of
chilled and frozen food, ready for distribution to retail and the
QSR market via their fleet of 180 temperature controlled trucks
and trailers
High level Financial Performance:
Site achieved break even in first year of operation,9 months
earlier than originally planned. Payback for overall investment
expected in 3 years
Big Chill 3PL Strategy | Case Study
Freightways FY25 Results
21
•Airwork, our JV partner in Parcelair, was placed into receivership in July 2025. The receivers are currently operating the business as a going
concern
•Freightways has developed a number of contingency plans that can be activated at short notice if required to ensure continuity of the air
network
•Our preference remains transitioning to a 3 x 737-800 network as lease commitments expire
•737-800s have higher carrying capacity and are more fuel efficient
Airfleet Strategy Update
Freightways FY25 Results
22
Horizon 1. Extend And Defend | National Delivery
•Pursue market share opportunities leveragingnewinfrastructure, technology and improved
service performance
•Implementation of Big Chill Connect (new Transport Management System) has delivered
improved visibility across the network. Phase 2 to support efficiencies is near completion
Horizon 2. Grow Scale | 3PL
•Demand for Ruakura 3PL services has exceed expectations (profitable from Q1 FY25), aim
to scale to 90%+ utilisation by the end of Q1 FY26.
•Modelling future 3PL facilities to determine whether either (or both) provide required ROIC.
Strong customer demand in both locations
Horizon 3. Establish new lines of business |
Same Day (ProducePronto)
•Continue to win new customers and leverage existing capability within the Big Chill network
where appropriate
•Ensure that step change costs associated with strong growth are managed and new
business secured supports any additional infrastructure costs
•Expand offering into the quick service restaurant and convenience retail sectors
Overview:
Refrigerated national transport
Temperature controlled 3PL
Same day refrigerated delivery
Temperature Controlled Brands:
3 Horizons of Growth | Temperature Controlled
Freightways FY25 Results
23
Overview:
B2B - overnight national network delivery -courier and mail
B2C - overnight and economy delivery - courier and mail
Oversize parcels
Express Package Brands:
Horizon 1. Extend And Defend | B2B
•Focus on profitable market share gains
•Continue to ensure service is a differentiator for customers in NZ
•Project Evolve expenditure to be $5m in FY26
•South Island hub expansion targeted for mid-2027
Horizon 2. Grow Scale | B2C
•Maintain high levels of service to be able to commanda premium for B2C
deliveries
•Continue Pricing for Effort Strategies
Horizon 3. Establish New Lines of Business | Oversize (25kg+)
•Scale Oversize revenue in NZ and AU
•Continue to extend the reach of our EP services in NZ and AU
•Assess bolt-on M&A opportunities in AU
3 Horizons of Growth | Express Package & Business Mail
Freightways FY25 Results
24
Mark Troughear
Chief Executive Officer
Divisional Performance
Information Management & Waste Renewal
Neil Wilson
General Manager, Freightways
Freightways FY25 Results
25
Notes
FY25
$m
FY24
$m
Change
%
Operating Revenue
233.6214.49.0
EBITA (non-GAAP)1
31.332.3(3.1)
EBITA margin
13.4%15.1%
NPAT2
17.317.7(2.3)
Notes:
•Results in this table are after adjustments for NZ IFRS16 (Leases)
•Refer to appendices for reconciliation to results before NZ IFRS16
1.Operating profit before interest, tax and amortisation
2.Net profit after tax
FY25 Performance Overview:
>Solid performance by TIMG but earnings impacted by
Waste Renewal performance
>Revenue growth driven primarily from digitisation and
waste renewal
‒Digitisation grew 16%
‒Medical waste grew 16%
>Storage was resilient with 3% revenue growth in the
year
>Margins were impacted by the performance of the
Waste Renewal business with a number of one off
costs ($2.2m) exacerbating a year where revenue grew
strongly but at margins that were too low in some
product lines
FY25 Information Management & Waste Renewal Result
Freightways FY25 Results
26
Horizon 1. Extend And Defend | Storage
Archive revenues and margins assisted through FY25 through pricing and new business.New
customer growthexpected to be stronger in AU assisted by health and government verticals
Focus on filling AU spare warehouse capacity particularly in NSW
Paper destruction volumes increased in NZ with more workers back in office
Overview:
Document Destruction
Digitalisation
E-Commerce 3PL
Information Management Brands:
Horizon 2. Grow Scale | Digitisation
Digital revenues in AU grew by 32% during the year. Digital revenues are now TIMG AU’s largest
activity providing 30% of total revenue
Pipeline of digital growth opportunities across government and health sectors in AU continue to
deliver strong growth
Successful projects completed to date are helping TIMG’s digital credentials. Implementing
largersalesteams to further capitalise on this opportunity
Horizon 3. Establish new lines of business | eCommerce 3PL
Utilise spare records storage capacity to grow our SME targeted eCommerce fulfilment offer
Still small, but scaling, with revenues from Stocka and secure 3PL passing $5m in FY25
3 Horizons of Growth | Information Management
Freightways FY25 Results
27
Horizon 1. Extend And Defend | Secure Destruction
•Implementing new pricing strategies to restore margin in locations where the density of
collections have changed
•Restructure of the network to improve service and efficiency – we expect to make a meaningful
improvement to earnings in FY26
Horizon 2. Grow Scale | Medical Waste
•Build scale through the new VIC facility – currently at circa 25% utilisation
•Improve sales coverage to drive double digit revenue growth in FY26
Horizon 3. Establish new lines of business | High Value Waste
•Reassess pricing and margins for each line of business with a view to performing only profitable
collections
•Consolidate processing to specialist sites to avoid duplication of resource across the network
Overview:
•Document Destruction
•Medical Waste
•High-Value Waste Recycling
Waste Renewal Brands:
3 Horizons of Growth | Waste Renewal
* 38.5% owned by Freightways
Freightways FY25 Results
28
Acquisition Strategy and Investment Criteria
>Well defined target characteristics: either complementary, or synergistic
with existing operations
>Acquisitions aligned with strategy and operating culture
>Disciplined approach to acting on opportunities
Progress to date
>Assessed a large number express package targets in FY25
>Pipeline has a meaningful number of active and future potential
opportunities mostly in the AU EP segment
>Size ranges: Revenue of $50m to $500m / B2B and B2C focussed
>Nature of the market means operators typically service a niche (geo, size,
service standard, industry vertical)
Disciplined Approach to M&A | AU Opportunity
Freightways FY25 Results
29
Outlook
Mark Troughear
Chief Executive Officer
Freightways FY25 Results
30
>Whilst NZ’s long waited recovery has been delayed for longer than
anticipated, we have seen a modest improvement in volume over the
last 6 months and would expect this to build some momentum in FY26
>Any positive economic momentum, along with our efficiency and
pricing initiatives, would assist to expand margins slightly in the year
ahead
>Our focus is on demonstrating and improving our service quality to
retain, and attract, new customers for each of our niche-facing brands
>There are a range of organic and inorganic opportunities that we will
continue to pursue in FY26
Focus on
restoring
margins
Volumes expected to
benefit as the
economy begins to
grow.
Focus on restoring
margins continues in
FY26.
Disciplined M&A
approach, with
opportunities being
explored.
FY26 Outlook
Freightways FY25 Results
31
Questions?
Presenters:
Mark TroughearStephan DeschampsAaron StubbingNeil Wilson
Chief Executive OfficerChief Financial OfficerGeneral Manager, EPGeneral Manager, FRW
Freightways FY25 Results
32
FREIGHTWAYS GROUPFY25 ($m)FY24 ($m)
Notes
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Post NZ IFRS16NZ IFRS16
adjustment
Pre NZ IFRS16
(non-GAAP)
Operating Revenue
1,289.6-1,289.61,209.2-1,209.2
EBITDA (non-GAAP)1
248.6(74.2)174.4229.1(65.9)163.2
EBITA (non-GAAP)2
158.4(12.9)145.5149.0(12.1)136.9
NPATA (non-GAAP)3
92.43.495.883.63.887.4
NPAT4
80.13.483.570.93.874.7
NOTES
1.Operating profit before interest, tax, depreciation and amortisation.
2.Operating profit before interest, tax and amortisation.
3.Net profit after tax before amortisation.
4.Net profit after tax.
Appendix – Reconciliation of Post-IFRS16 to Pre-IFRS16
Freightways FY25 Results
33
EXPRESS PACKAGE & BUSINESS MAILNotesFY25 ($m)FY24 ($m)Change (%)
Operating Revenue
1,061.0999.16.2
EBITDA (after NZ IFRS16)
1204.7181.912.5
Less: NZ IFRS16 adjustment
(51.4)(44.4)15.8
EBITDA (before NZ IFRS16)
1153.3137.511.5
EBITA (after NZ IFRS16)
2143.3128.411.6
Less: NZ IFRS16 adjustment
(8.5)(7.6)11.8
EBITA (before NZ IFRS16)
2134.8120.811.6
NOTES
1.Operating profit before interest, tax, depreciation and amortisation (non-GAAP).
2.Operating profit before interest, tax and amortisation (non-GAAP).
Appendix – Reconciliation of Post-IFRS16 to Pre-IFRS16
Freightways FY25 Results
34
INFORMATION MANAGEMENT &
WASTE RENEWAL
NotesFY25 ($m)FY24 ($m)Change (%)
Operating Revenue
233.6214.49.0
EBITDA (after NZ IFRS16)
158.557.51.7
Less: NZ IFRS16 adjustment
(22.5)(21.3)5.6
EBITDA (before NZ IFRS16)
136.036.2(0.6)
EBITA (after NZ IFRS16)
231.332.3(3.1)
Less: NZ IFRS16 adjustment
(4.4)(4.4)-
EBITA (before NZ IFRS16)
226.927.9(3.6)
NOTES
1.Operating profit before interest, tax, depreciation and amortisation (non-GAAP).
2.Operating profit before interest, tax and amortisation (non-GAAP).
Freightways FY25 Results
35
Appendix – Reconciliation of Post-IFRS16 to Pre-IFRS16
---
Results for announcement to the market
Name of issuer FREIGHTWAYS GROUP LIMITED
Reporting Period 12 months to 30 June 2025
Previous Reporting Period 12 months to 30 June 2024
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$1,289,559 6.6%
Total Revenue $1,289,559 6.6%
Net profit/(loss) from
continuing operations
$80,108 12.9%
Total net profit/(loss) $80,108 12.9%
Final Dividend
Amount per Quoted Equity
Security
$ 0.29166667
Imputed amount per Quoted
Equity Security
$0.08166667
Record Date 12 September 2025
Dividend Payment Date 1 October 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security (in
dollars and cents per
security)
$(0.79) $(0.92)
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to the attached annual report and results presentation.
Authority for this announcement
Name of person
authorised
to make this announcement
Stephan Deschamps
Contact person for this
announcement
Stephan Deschamps
Contact phone number +64 27 562 5666
Contact email address stephan.deschamps@freightways.co.nz
Date of release through MAP
18 August 2025
The information set out in this announcement is based on the audited financial statements of
the Group for the financial year ended 30 June 2025. An unqualified audit opinion was issued
by the Group’s auditors in relation to those financial statements.
---
Section 1: Issuer information
Name of issuer Freightways Group Limited
Financial product name/description Fully Paid Ordinary Shares
NZX ticker code FRW
ISIN (If unknown, check on NZX
website)
NZFREE0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 12 September 2025
Ex-Date (one business day before the
Record Date)
11 September 2025
Payment date (and allotment date for
DRP)
1 October 2025
Total monies associated with the
distribution
1
$37,546,000
Source of distribution (for example,
retained earnings)
Current earnings for the year ending 30 June 2025
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.29166667
Gross taxable amount
3
$0.29166667
Total cash distribution
4
$0.21000000
Excluded amount (applicable to listed
PIEs)
$-
Supplementary distribution amount $0.03705882
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed Fully imputed
If fully or partially imputed, please
state imputation rate as % applied
6
28%
Imputation tax credits per financial
product
$0.08166667
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Resident Withholding Tax per
financial product
$0.01458333
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP
N/A N/A
Date strike price to be announced (if
not available at this time)
N/A
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
N/A
DRP strike price per financial product
N/A
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
N/A
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Stephan Deschamps
Contact person for this
announcement
Stephan Deschamps
Contact phone number +64 27 562 5666
Contact email address stephan.deschamps@freightways.co.nz
Date of release through MAP
18 August 2025
---
FINANCIAL YEAR ENDED 30 JUNE 2025Journey On
ANNUAL REPORT 2025
We are an ambitious
organisation and
always have been.
The drive to constantly improve influences
not only how we value everyone who
works here, but also how we think
about our customers, our investors, our
communities, and the environment.
Everything we do is about moving you to
a better place.
We achieve this by attracting individuals who
share our ethos and thrive in our dynamic
environments to join our teams. We deliver
for our customers by focusing on bringing
reliability, efficiency, and added value to
how we pick up, process, and deliver. We
aim to reward our investors for the belief
they have in us by continuing to grow and
achieving appropriate and sustainable
returns. We also support our communities
through sponsorships, support, and by
employing or contracting local people.
17 FY25 operating highlights
18 Leading legacy – people
Caitlin Boyd
19 Case study | Christchurch
Express Package Hub
21 Case study | TIMG and
Infomedix
23 Leading legacy – people
Scott Hedgman
24 Case study | Big Chill
27 Leading legacy – people
James Robinson
28 Supporting community
30 Case study | Allied Express
32 Leading legacy – people
Betty Zhang
33 Focusing on ethical supply
chain practices
34 Sustainability update
40 Directors’ report
PERFORMANCE
16
03 FY25 financial highlights
04 Chair and CEO report
06 Freightways’ growth strategy
08 Our family of brands
13 Leading legacy – people
Aaron Stubbing
14 Our board
15 Our leadership
OVERVIEW
02
53 Independent Auditor’s report
59 Income statement
60 Statement of
comprehensive income
61 Statement of changes in equity
62 Balance sheet
64 Statement of cash flows
65 Notes to the
financial statements
FINANCIAL REPORT
52
113 Shareholder information
115 Corporate governance
statement
120 Directory
121 Company particulars
ADDITIONAL
DISCLOSURES
112
Contents
01Freightways Annual Report 2025
03 FY25 highlights
04 Chair and CEO report
06 Freightways’ growth strategy
08 Our family of brands
13 Leading legacy – people | Aaron Stubbing
14 Our board
15 Our leadership
OVERVIEW
02
02Freightways Annual Report 2025
FY25 financial highlights
▲
7.9%
Cash generated
from operations
2.3%
(From 2.6% FY24)
Capex/Revenue
▲
12.9%
to $80.1m
NPAT growth
▲
6.6%
to $1.3b
Revenue
▲
6.3%
to $158.4m
*EBITA growth
▲
12.3%
(same as FY24)
*EBITA margin
▼
(6.4%)
Net Debt
▲
8.1%
to 40c (37c in FY24)
Dividend (FY)
* Non-GAAP (Generally Accepted Accounting Principles)
03Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
“Even in tough economic
conditions, we’ve retained
customers and continued to
attract new ones, reflecting
our consistent service delivery.”
MARK TROUGHEAR, CEO
FREIGHTWAYS GROUP
Building strength for the
journey ahead
Following another year shaped by a constrained economic environment,
Freightways delivered a solid performance. This outcome reflects the ongoing
focus of our people to foster strong customer relationships and deliver
consistently superior service across our network.
First and foremost, we remain
deeply saddened by the sudden
and tragic loss of a member of the
Shred-X team in Victoria, Australia in
December 2024. Our thoughts and
sympathies are with the individual’s
family, friends, and colleagues. We
are cooperating fully with WorkSafe
and the police in their investigations,
and we are undertaking a thorough
review of our internal safety systems.
Business Performance
Freightways’ FY25 performance
was better than macroeconomic
indicators would suggest. While
New Zealand’s GDP contracted by
0.6% over the year to March 2025,
our total revenue increased by 6.6%
year-on-year. Over the full year
EBITA and NPAT also rose by 6.3%
and 12.9%, respectively. Our lower
debt level reduced interest costs and
contributed to improved profitability.
The EPBM division achieved revenue
growth of 6.2%, EBITA growth of
11.6%, and margin improvement of
60bps over the prior corresponding
period. Although volumes were
lower from our existing customers,
this was offset by winning
business from new customers.
The Information Management and
Waste Renewal (IMWR) division had a
mixed performance, with revenue up
9% but EBITA down by 3.1%, driven
mainly by the performance of the Waste
Renewal business in FY25. We expect
that we will improve this performance
over the coming year with a range of
cost and price optimisation initiatives.
Across the group, despite sector
wide declines, Freightways increased
market share and maintained pricing
that reflected our increases in costs,
including wage increases for all of
our staff. We have also positioned our
brands as either #1 or a fast growing
#2 in each niche in which we compete.
CHAIR AND CEO REPORT
6.6%
INCREASE IN GROUP REVENUE
YEAR-ON-YEAR
04Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
“As the labour market
resettles, we’re positioned to
improve margin and focus
on growth.”
MARK TROUGHEAR,
CEO FREIGHTWAYS GROUP
Mark Cairns
CHAIRMAN
Mark Troughear
CHIEF EXECUTIVE OFFICER
Labour and
Cost Management
Over the two years post-Covid, we
experienced significant labour cost
increases. As an example, truck driver
wages rose by approximately 20%,
minimum wage increases peaked at
25% over a 4-year period in NZ, and
paid sick leave doubled. Our strategy
over FY25 and FY26 is to reclaim
this lost margin through efficiency
gains and pricing adjustments.
Recruitment conditions have improved.
We’re now seeing strong interest from
prospective employees, including in
roles that were previously difficult to fill.
Dividends and
Capital Management
The Directors have declared a final
dividend of 21cps, making the total
dividend for the year 40cps, fully imputed
at the New Zealand company tax rate
of 28%. This is an increase of more
than 8% since last year. The dividend
will be paid on 1 October 2025, with a
record date of 12 September 2025.
We remain focused on disciplined
financial management. Margin
improvements are expected to
continue through efficiency and
pricing discipline, and in FY26 we
expect some same customer growth
across most of our operations.
Strategy and
Operational Resilience
Freightways continues to diversify
across geographies and service
lines. Over a third of our revenue and
profits now come from Australia. The
2022 acquisition of Allied Express
marked a major step into that market,
with further investment planned.
The Group’s four activities offer
Freightways a diversified logistics
portfolio which balances risk and
opportunity. While some activities
are more sensitive to the economic
cycle, others provide reliable,
recurring revenue streams.
Several businesses lead or outperform
their respective markets. Local
management teams are empowered
to act with autonomy, which supports
responsiveness and innovation.
Recent examples include:
• TIMG’s digital medical records
partnership with InfoMedix
• Allied Express’s investment in
automated sortation, improving
throughput to meet a 12% lift
in demand
• Kiwi Oversize is growing a new
revenue stream to $10m per
annum, over 2 years, with minimal
capital investment.
Systems and Technology
Project Evolve is underway to upgrade
our billing and payments infrastructure.
Phase one will offer customers more
flexible payment options. Phase two
will introduce automated pricing and
remuneration systems linked to item
weight, size, and destination. Given
the scale of our operations (processing
over 100 million items per year), these
changes are expected to improve margin.
Outlook
In the near term, we are focused on
margin improvement while maintaining
and improving service quality. Our
Horizon one and two revenue streams
are well established as either market
leaders or fast-growing challengers.
These businesses will benefit from
a modest level of same customer
organic growth and we expect will
continue to win market share from
strong service propositions.
Over the longer term, growth will
come from emerging areas such as
oversized freight, chilled deliveries,
high-value waste services, and third-
party logistics for eCommerce.
Freightways has demonstrated resilience
through recent years of disruption.
Our focus remains on operational
efficiency, prudent capital management,
and delivering value to customers,
employees, and shareholders.
05Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Freightways’ growth strategy
OUR PURPOSE
What we do
Freightways is a business that is always on the
move. Across the Group, we pick-up, process and
deliver physical and digital items providing a reliable
and efficient service for our customers. We look to
develop our people through career opportunities.
We seek appropriate and sustainable returns
for our investors. And we look to move the dial
for communities through the causes we support
and employing or contracting local people.
OUR PRINCIPLES & CAPABILITIES
How we work
Three principles guide how our teams
and our partners deliver:
• We take ownership and responsibility at every level
for what we do and what we can improve.
• We think commercially about the deals we make
so that they make sense for our customers, our
contractors, our business and our shareholders.
• We work as a family by supporting people, by
prioritising their safety and wellbeing and by doing
our best to ensure they get home safe each day.
We depend on our capabilities to deliver what our
customers, investors and communities expect.
We’re efficient. This critical capability enables
us to move around 100 million items through our
various businesses every year. We are reliable. We
target flawless execution, which enables us to shift
multiple items through multiple touchpoints in our
network, across two nations, every day. We act like
entrepreneurs. We recognise and execute on high-value
opportunities. We always look forward and up. We love
our customers, both internal and external because
we know they’re crucial to our commercial success.
OUR VISION
Why we do this
Better outcomes won’t just happen. It takes
a conscious effort from our team to move
things forward for our customers, our team,
our shareholders and our communities.
Our “why” is to move you to a better place.
Transition Plan
In the Reporting Period, Freightways identified
strategic focus areas to inform its first Group-
wide Transition Plan, replacing the former
Environmental Statement. The strategic focus
areas in the Transition Plan, were approved
by the Board in July 2025 and form part of
the Freightways Growth Strategy. The focus
areas of the Transition Plan outline the actions
Freightways expects to take to transition towards
a low-emissions, climate resilient future across
its Group Controlled Businesses. The focus areas
are intended to guide decision-making, in line
with the Group’s broader strategic and financial
goals. In implementing the Freightways’ strategy,
it will have regard to the strategic objectives of
the Transition Plan. Formalising the governance
structure for the Transition Plan at the Board and
Management level and setting carbon reduction
targets to support the execution of the Transition
Plan are focus areas for the next reporting period.
The strategic focus areas of the Transition
Plan will be disclosed in Freightways’ Climate
Statement in September. Once released,
it will be available on the Company’s
website at http://www.freightways.co.nz/
investor-relations/annual-reports/
06Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
VISIONPRINCIPLESCAPABILITIESACTIVITIES
EXPRESS PACK AGE
AND BUSINESS MAIL
TEMPERATURE
CONTROLLED
INFORMATION
MANAGEMENT
WASTE
RENEWAL
We move
you to
a better
place
Pick-up,
Process and
Deliver
Take ownership
Think commercially
Work as a family
Strive for efficiency
Deliver reliably
Love our customers
Act like an
entrepreneur
07Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Our family of brands
Our market-leading
brands combine shared
infrastructure within
New Zealand and
Australia respectively,
with specialist knowledge
in each niche. We work
across a range of business
sectors, achieving high
levels of quality and
efficiency, through our
focus on adding value
to how we pick-up,
process and deliver.
Our strong culture and commitment
unifies our people and feeds
our deep team spirit.
We draw on all of that to continue to
evolve our businesses to meet the
changing needs of our customers.
Express Package and Business Mail
Our multi-brand strategy in the Australasian courier and New Zealand
business mail markets caters to a range of customer needs and delivery
timeframes. It enables us to win a niche with a specialist focus – but also
leverage the combined infrastructure across each segment.
Our New Zealand Express Package operations share branch networks,
air and road linehaul, and IT. These brands include New Zealand Couriers,
Post Haste, Castle Parcels, NOW Couriers, SUB60, Security Express, Kiwi
Express, STUCK, Kiwi Oversize, Freightways Global, and Pass the Parcel.
We also offer airfreight capability for our overnight Express Package
delivery service through our joint venture airline, Parcelair, and our
linehaul partner, Parceline.
Our national Australian network is operated by Allied Express and includes a
range of specialist express services including express B2B and big and bulky
B2C deliveries.
DX Mail is New Zealand’s only dedicated business mail specialist offering
time-sensitive physical postal services. It leverages the Express Package
network ensuring it can operate in a lean manner.
Dataprint offers mailhouse-print services and digital mail presentation
platforms across New Zealand. Our technology
and solutions transform data into effective
communications for customers.
Freightways’ flagship brand is
positioned as the premier provider
of network courier services to New
Zealand businesses. Specialising
in express parcel delivery, service
standards range from 2.5 hours for local
deliveries, to overnight by 9.30am for
nationwide deliveries. New Zealand
Couriers sits at the premium service/
premium price end of Freightways’
multi-brand strategy. New Zealand
Couriers is Freightways’ largest brand
by revenue and operating earnings.
LOCATION: New Zealand
WWW.NZCOURIERS.CO.NZ
08Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Millions of kilometres per year, through
300 towns and cities in New Zealand
keeps this brand an integral part of
our business to business, network
courier infrastructure. Positioned in the
lucrative mid-market segment ensures
Freightways customers have choice in
terms of service levels and price point.
25+ years of experience firmly
establishes this brand in the larger parcel
distribution market. With two branches
in Auckland, one each in Wellington and
Christchurch, Castle Parcels is perfectly
located to serve the non-document
needs of businesses around New
Zealand. Their same island next day and
inter island 2 day nation-wide services
ensure all urgent parcel needs are met.
A Freightways acquisition in 2008, NOW
Couriers complements our Express
Package division with New Zealand
Couriers, Post Haste and Castle Parcels.
Specifically NOW Couriers specialises
in responsive, friendly service for
Auckland businesses with national
courier needs. NOW Couriers is backed
by Freightways’ 50 years of experience
in the hub and spoke courier industry.
SUB60 was formed in 1982 and is
the largest nationwide time sensitive
courier company in New Zealand. Based
in three main centres – Auckland,
Wellington and Christchurch, SUB60
is perfectly positioned to serve
the point-to-point courier needs of
other nationwide businesses.
Developed to service your more unusual,
hard-to-solve freight requirements
in a one-stop logistical shop. Stuck
uses the expertise and horsepower
of the Freightways group to plan and
move oversized, uncommon items
anywhere in New Zealand and the
world. It’s the place you go to when
the competition says ‘they can’t’.
This 2005 addition to the Express
Package division strengthened
Freightways’ position in the time-
sensitive courier sector. Kiwi Express
offers a strong national courier network
characterised by responsiveness,
investment in up-to-the-minute
technology and knowledgeable people.
Pass The Parcel is a simple online
courier solution designed with Kiwi
online traders in mind. Developed
and backed by Freightways courier
powerhouse, Post Haste, Pass The
Parcel keeps the courier engagement
process simple, fast and hassle-free
– and it even syncs with Trade Me.
LOCATION: AustraliaLOCATION: New ZealandLOCATION: New ZealandLOCATION: New Zealand
LOCATION: New ZealandLOCATION: New ZealandLOCATION: New ZealandLOCATION: New Zealand
WWW.ALLIEDEXPRESS.COM.AUWWW.POSTHASTE.CO.NZWWW.CASTLEPARCELS.CO.NZWWW.NOWCOURIERS.CO.NZ
WWW.SUB60.CO.NZWWW.STUCK.CO.NZWWW.KIWIEXPRESS.CO.NZWWW.PASSTHEPARCEL.CO.NZ
Allied Express is a niche leading courier
and express freight company in Australia
with offices in major cities and a fleet
of over 600 vehicles. Allied provides
a range of fast and efficient B2B and
B2C express services and go beyond
just delivering products to operate as
a transport partner. Allied mirrors their
clients’ service and commitment to their
customers ensuring their reputation as a
consistent and reliable supplier is upheld.
09Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
DX Mail began in New Zealand in
the 1970s as an interchange system
for lawyers exchanging documents
between practices, and through hard
work, passion and commitment, DX
Mail have grown to become leaders
in business mail communication.
Dataprint works to revolutionise the
traditional mail house sector, offering a
combination of conventional and digital
mail house solutions, from creation,
management to archive. Dataprint is a
perfect fit for enterprise companies that
process large volumes of transactional
electronic communications.
Stocka is a third-party logistics (3PL)
company that specialises in online
fulfilment services for parcel-sized
items across a variety of industries.
Whether it’s for growing e-commerce
brands or large global companies,
Stocka ensures that your goods
are securely stored and orders are
dispatched efficiently and accurately,
thanks to our Freightways network.
Fieldair Holdings Limited’s primary
purpose is to support the operation
of a fleet of Boeing 737-400 freight
aircraft under the Parcelair joint venture
arrangement, which operate nightly
dedicated air linehaul services between
the North and South Islands. It provides
crewing and support services for these
aircraft and for external customers
including The Life Flight Trust.
Freightways Information Services (FIS)
is an internal shared services provider
of information technology and advisory
services to the Freightways businesses.
It is responsible for managing
Freightways’ overall information
technology infrastructure and maintains
relationships with selected external
information technology suppliers.
An integral part of the Freightways
infrastructure, Parceline Express
operates our line-haul on all the arterial
roads in New Zealand. A vital connector,
Parceline Express’ big trucks provide our
brand family with a dedicated daily multi-
link to main airports and links between
our main centres and the provinces.
Importing or Exporting we’ve got this!
Here at Freightways Global we specialise
in international e-Commerce freight
logistics- inbound into New Zealand and
export freight. Our highly experienced
international team are experts in the
key trade -lanes delivering worldwide
freight forwarding solutions-via sea or air,
integrated with the final mile networks
of our Express Package divisions.
LOCATION: New ZealandLOCATION: New ZealandLOCATION: New ZealandLOCATION: New Zealand
LOCATION: New ZealandLOCATION: New ZealandLOCATION: New ZealandLOCATION: New Zealand
WWW.SECURITYEXPRESS.CO.NZWWW.DXMAIL.CO.NZWWW.DATAPRINT.CO.NZWWW.STOCKA.CO.NZ
WWW.FIELDAIR.CO.NZWWW.FREIGHTWAYS.CO.NZ/OUR-BRANDS/WWW.TO BE CONFIRMEDWWW.FREIGHTWAYSGLOBAL.CO.NZ
Security Express is the secure-logistics
arm of Freightways, serving the
security needs of Auckland, Wellington
and Christchurch businesses and
beyond. A complete, capable secure
service, from call to consignment
delivery ensures Security Express is
positioned as the nimble, hardworking
brand in direct competition to
the large security companies.
10Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Big Chill is a New Zealand market leader
in temperature-controlled transport,
specialising in fast moving consumer
goods (FMCG) and time critical parcel
freight, both chilled and frozen. Big
Chill operates a fleet of over 200
temperature-controlled trucks and
trailers through its nationwide network
of depots and purpose-built cool stores.
With nearly 40 years of experience,
TIMG helps New Zealand businesses
manage their information securely
across the entire lifecycle – from
document and data storage to
intelligent document processing, online
backup, and certified destruction of
documents, data, and e-waste. Every
service is built on a foundation of
security, privacy, and compliance.
We are recognised as effective
Information Management problem
solvers, offering innovative and cost-
effective solutions. Our people are
our most valuable asset, equipped
with the expertise and solutions
to deliver effective products.
ProducePronto started life working
with companies in Auckland and
around New Zealand to ensure staff
are healthy and motivated with our
of fice fruit basket deliveries since 2011.
We have more recently expanded into
delivering chilled, frozen and ambient
products to service stations the length
and breadth of NZ, 365 days a year.
LOCATION: New Zealand
LOCATION: New Zealand
LOCATION: New Zealand
LOCATION: Australia
WWW.BIGCHILL.CO.NZ
WWW.TIMG.CO.NZ
WWW.PRODUCEPRONTO.CO.NZ
WWW.TIMG.COM
Temperature
Controlled
Big Chill Distribution and
ProducePronto make up
our national temperature-
controlled business, together
servicing the chilled logistics
needs of Kiwi businesses.
Combining our chilled national
linehaul with an urban, chilled
van network allows us to offer
national delivery, same day
delivery, 3PL and 4PL under one
responsive umbrella utilising
the Big Chill depots nationwide.
Information
Management
The Information Management
Group (TIMG) helps businesses
in New Zealand and Australia
protect and add value to the
data they entrust us with. It
offers physical storage and
information management
services, as well as digital
information processing services
such as digitalisation, business
process outsourcing, online
back-up and eDiscovery
services. Last year we
increased the utilisation of our
New Zealand storage facilities
by starting an eCommerce
3PL service called Stocka.
11Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Shred-X is a nationally recognised
secure destruction provider with
top industry accreditations. It offers
a Privacy Act compliant service for
collecting, transporting, and destroying
sensitive data, with extensive direct
service coverage. The services include
document, e-waste, media, hard drive,
archive box, purge, textile, and product
destruction. Shred-X leads in ethical and
sustainable recycling, providing paper,
printer waste, and e-waste recycling.
Med-X Healthcare Solutions provide
products and services for the safe and
secure handling, treatment and disposal
of clinical waste and related services
including sharps, washroom and hygiene
services and chemical waste and
pharmaceutical disposal in Australia.
Med-X are committed to exceptional
customer service and the development
of innovative and sustainable practices.
LOCATION: Australia
LOCATION: Australia
WWW.SHRED-X.COM.AU
WWW.MED-XSOLUTIONS.COM.AU
Waste Renewal
Shred-X offers document
destruction, eDestruction and
product destruction services
in Australia. We also provide
medical waste collection
and processing services
under the Med-X brand.
We continue to assess
new ways of collecting and
processing waste streams
for diversion from landfill.
12Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Throughout Aaron
Stubbing’s diverse
career, he describes his
approach as “relentless”.
He’s not afraid to push
boundaries, have
tough conversations,
and find ways to
make things better.
Aaron explains that his current role
as General Manager at Express
Package feels like a real high point.
“The role feels like my All Blacks jersey.
I’m very proud to be here, very proud
to be part of the Freightways family.”
FROM GRADUATE TO GENERAL MANAGER
Aaron first joined New Zealand Couriers’
Finance Team in 1995, managing the
NZC property portfolio. Two years in the
operations team gave him invaluable
hands-on experience before becoming
the first Branch Manager for Auckland’s
North Harbour. There, he oversaw the
transition from a satellite to a fully-
fledged branch. Shifting to Christchurch,
Aaron Stubbing
GENERAL MANAGER
WORKPLACE: Express Package
YEARS: Joined 1995
LEADING LEGACY | PEOPLE
Resilience, relationships and relentless positivity
he progressed from another Branch
Manager role to become Southern
Regional Manager. He learnt quickly
about adaptability and resilience (and
found that becoming a Crusaders fan
was a non-negotiable). In 2008, Aaron
moved back to Auckland as the General
Manager of Messenger Services (MSL),
a move that coincided with a global
financial crisis and a shift to digitisation.
“My business disintegrated in many
ways, overnight. Our response was
to climb into Woolworths’ online
shopping opportunity and we grew the
fleet from half a dozen runs in Auckland
to over 100 nationally,” explains Aaron.
MORE ROLES, MORE CHALLENGES
After overseeing MSL’s transformation,
a ‘Freightways shuffle’ saw Aaron
taking the role of General Manager
at Post Haste.
“Post Haste is very much in the
economy space, the opposite end of
what I’d come from,” explains Aaron.
And then, COVID-19 hit with lockdowns,
business limitations and skyrocketing
deliveries. Although it was a tough
time for many, Aaron remembers
the positives.
“We were just so unified. And I’ll
never forget that experience, the highs
and lows with the team,” he says.
Four years on, Aaron stepped into the
role of General Manager of Express
Package, then covered the General
Manager role at New Zealand Couriers.
This makes him one of only a few who
have managed all three core Freightways
Express Package Businesses. It’s the
perfect illustration of Aaron’s approach
to his career – he’s always willing to
get involved where he’s needed.
RELATIONSHIP BUILDING
AND RESILIENCE
Reflecting on his 30 years with
Freightways, he talks most about
the value of relationships in his work
and his personal life. He has known
many of the Freightways team for so
long that they’re like a family. He also
credits his wife Siobhán – affectionately
called ‘Mrs S’ by the Freightways
crew – for her unwavering support.
“We grew the fleet from half
a dozen runs in Auckland to
over 100 nationally.”
For Aaron, it comes back to a
drive to do his best in everything.
This is what he tells his team:
“You know, we didn’t make the All
Blacks, we didn’t make the NBA, we
didn’t become ballerinas or artists.
But this is our profession, and this is
where we want to play at our best.”
13Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Our board
Mark Cairns
CHAIR
Fiona Oliver
DIRECTOR
Abby Foote
DIRECTOR
Grant Devonport
DIRECTOR
David Gibson
DIRECTOR
Peter Kean
DIRECTOR
14Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
Our leadership
Mark Troughear
CHIEF EXECUTIVE OFFICER
Matthew Cocker
CHIEF INFORMATION OFFICER
Neil Wilson
GENERAL MANAGER FREIGHTWAYS
Stephan Deschamps
CHIEF FINANCIAL OFFICER
Nicola Silke
GENERAL COUNSEL AND
COMPANY SECRETARY
Aaron Stubbing
GENERAL MANAGER EXPRESS PACKAGE
Ami van Gils
HEAD OF PEOPLE AND CULTURE
Michael Claydon
GENERAL MANAGER SAFETY
15Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
PERFORMANCE
16
17 FY25 operating highlights
18 Leading legacy – people | Caitlin Boyd
19 Case study | Christchurch Express Package Hub
21 Case study | TIMG and Infomedix
23 Leading legacy – people | Scott Hedgman
24 Case study | Big Chill
27 Leading legacy – people | James Robinson
28 Supporting community
30 Case study | Allied Express
32 Leading legacy – people | Betty Zhang
33 Focusing on ethical supply chain practices
34 Sustainability update
40 Directors’ report
16Freightways Annual Report 2025
FY25 operating highlights
0.4%
NZ EP Item Growth
11.6%
AU EP Item Growth
Express
Package and
Business Mail
Temperature
Controlled
Auckland 100%
Ruakura 83%*
Christchurch 93%
3PL utilisation
* at peak in FY25
(5.0)%
Same customer
transport volume
32%
Digital growth (AU)
Information
Management
6.5m
Boxes in storage
(NZ + AU)
56,800
Tonnes of paper
collected and
recycled
Waste
Renewal
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17Freightways Annual Report 2025
For Caitlin Boyd, a career crisis was
a good thing – it led to her current
role on NZ Courier’s Data Integration
team. After joining NZ Couriers as a
temporary driver in 2021, she’s worked
her way through multiple departments
and roles, building her understanding
of the business and drawing on
experience from her previous career.
Now, she’s working in a challenging,
variable role where no two days are the
same – and she couldn’t be happier.
“I’ve learned that I’m quite good with
chaos. I’m quite good with things
not being consistent all the time.”
AN UNEXPECTED CAREER SHIFT
After qualifying as an accountant and
working in the sector for several years,
Caitlin realised that accounting wasn’t
for her during the COVID-19 lockdowns.
She retrained as an HR professional
and aimed to move into that industry,
but took a temporary role as a courier
driver while she was job hunting.
Thanks to COVID, it was an incredibly
busy time for NZ Couriers – the business
was dealing with freight volumes
of around three times the typical
numbers. Despite the urgency and
Caitlin Boyd
DATA INTEGR AT ION
WORKPLACE: NZ Couriers
YEARS: Joined 2021
LEADING LEGACY | PEOPLE
Finding a new path in freight
stress, Caitlin remembers it as a time
of team spirit and positivity, and she
found that she thrived under pressure.
“It was a chaotic time, really, but as
someone who had worked from home
as an accountant for such a long
period, I really enjoyed the out-and-
about of freight. Every day is quite
different, getting to meet different
people and feeling like I am helping
people by delivering important items
like medication. It really felt like I was
making a difference,” she explains.
As it turned out, the role wasn’t as
temporary as she expected – Caitlin
ended up working as a driver for almost
six months. From there, she moved into
a trainer role, which saw her travelling all
over Auckland to show recruits the ropes.
ANOTHER STEP FORWARD
After a year as a trainer, Caitlin was
tapped for another new job as the admin
team lead for the Auckland office. This
was her third role in just a year and a half,
and a chance to combine her accounting
experience and her on-the-road
knowledge of the NZ Couriers business.
“I was able to use my understanding
of how it all worked on the road to
help the admin team,” she explains.
After leading the admin team for a year,
she left for an outside opportunity,
but returned when a role on the Data
Integration team opened up. With
Freightways going through a major
shift to digitisation, the business
needed all hands on deck to support
customers through the process.
Caitlin’s combination of admin, on-the-
road experience, and her accounting
background made her the perfect fit.
“The data team is not something that I
had any experience in,” she admits. “But
I can see how it works out on the road,
the delivering of the parcels, what good
quality output should be. And with the
administration background, I understood
how the billing side of it works.”
PROBLEM-SOLVING AND
CUSTOMER SERVICE
Caitlin describes herself as ‘a person who
likes to know things,’ and that trait serves
her well in her current role. As part of
the Data Integration team, she’s always
problem-solving – depending on the
day, she might be working on a ticketing
issue, setting up a new customer
account, or troubleshooting a problem
for a sales rep. Using her knowledge
and skillset to help people is one of the
most satisfying aspects of the job.
“It’s that ability to help others,”
she explains. “Being able to resolve
people’s issues there and then to
get them where they need to be.”
After the rollercoaster of the last few
years, Caitlin is looking forward to
settling into her new role and applying all
the knowledge she gained along the way.
“My knowledge from prior to being
in the seat has made it exponentially
easier,” she says. “Just an understanding
of the language and the jargon, like
in any big business, those are the
hardest things to wrap your head
around. So I’m lucky, I think, that
I’ve had such a strange journey.”
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18Freightways Annual Report 2025
Future focused
When Freightways commissioned its
freight hub (TFH) in 2017, it didn’t
foresee a major expansion just eight
years down the line. However, as
a result of increasing demand, the
Christchurch facility is now in the
process of expanding its network
freight and sort capacity to handle more
packages and larger courier fleets.
John Charles, Project Manager for
the development, explains that
the ‘dual functionality’ project
will help Freightways enhance on-
time delivery performance across
its network. Completion date is
projected to be May 2027.
One facility,
multiple functions
TFH doesn’t just serve Christchurch
– it’s the network hub for the entire
South Island. This means it processes
freight to and from regional branches,
as well as deliveries headed to and
from the North Island via air. As John
Charles explains, the facility also
sorts individual packages for the
Christchurch courier fleet and handles
the road linehaul interchange of freight
containers heading to other regions.
It’s a major undertaking. Currently,
the facility sorts roughly 35,000 items
each night and houses around 80
contractors. While the existing space
is far from small, it’s showing signs
of strain – with the Post Haste fleet
moving to a neighbouring building in
the last two years, and the impact of
volume growth on local services with
local delivery timelines. The expansion
project will resolve these challenges.
More space, more
automation, more capacity
The expansion is extensive and multi-
faceted. The project will be run by
Christchurch Internaional Airport
Ltd (CIAL), who owns the land the
Christchurch facility sits on.
“The project will cater for our growth in volume and allow
us to simultaneously sort to the local courier fleet in
Christchurch as well as connect intercity freight travelling
to and from each Island.”
JOHN CHARLES, PROJECT LEAD, CHRISTCHURCH EXPRESS
The Christchurch Express Package Hub development
is a significant step forward for freight logistics in the
South Island.
CASE STUDY | CHRISTCHURCH EXPRESS PACKAGE HUB
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
19Freightways Annual Report 2025
“We get more freight passing
through the same window,
so we need to handle it.
Additional warehouse space
and automation help us
manage growth and meet
KPIs. That’s our primary
focus, making sure we can
have on-time delivery to the
final destination.”
JOHN CHARLES, PROJECT LEAD,
CHRISTCHURCH EXPRESS
Key elements of the project include:
• Extending the automated
cross-belt sorter
• Doubling the warehouse space to
20,000 m
2
• Tripling the covered road linehaul
interchange
• Extending the air apron that links
to Christchurch Airport
These changes will let the facility handle
higher volumes and significantly increase
the space available for undercover
truck loading and unloading. Extending
the air apron, where the Parceline
team loads aircraft directly from the
hub, will allow for more planes to
come in and out each day, including
larger aircraft. Increasing the internal
space will also mean that Post Haste,
who had to relocate, elsewhere will
be able to return to the main hub.
In short, it’s about expanding the
capacity of the hub so it can move
more freight within the same delivery
window. As John explains, the time
frame the facility has to sort freight
never changes, but freight volume
does – so boosting capacity is the
only lever the business can pull.
Sorting future growth
While the hub development won’t
be completed until May 2027, John
and the TFH team have a clear
understanding of the eventual benefits.
The new facility will have:
• Double the sortation capacity to
70,000 items per night
• Increased aircraft rotations from
3-4 to 5-6 each day
• Space for 105 courier contractors
and 240 staff
• Increased loading capacity for
regional linehaul vehicles to 25
each night
Flexible, tech-forward and designed
with an eye on the future, the Freight
Hub development is a prime example
of the Freightways approach.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
20Freightways Annual Report 2025
Partners in innovation
Healthcare, like many other industries, has been
comparatively slow to move from paper-based files to
more efficient digitised records. However, change is
now happening – and at the centre is TIMG Australia,
thanks to its partnership with Infomedix.
A cloud-based document platform for
medical records, Infomedix’s offering
perfectly complements TIMG’s physical
scanning and storage infrastructure.
The result is end-to-end digitisation
services delivered to Australia’s largest
private hospital operator. In just 18
months, TIMG has collected, digitised,
and returned 335,000 patient records.
Eight more hospitals are now sending
all new records to TIMG, and three have
fully transitioned their legacy records.
Horizon 2
TIMG had long been considering its
position in the digital world, as more
customers shifted away from paper.
What was missing was a platform
to manage digital hospital records
– because complex healthcare
organisations require more than
basic scanning.
Infomedix proved to be that final
piece. The technology has been in
Australia for 25 years, headquartered
in Melbourne, with a strong presence
across both public and private healthcare
organisations. The company’s latest
platform upgrade allows hospitals to
manage patient files live online, from
anywhere. Traditionally, hospitals
would continue working on paper, then
scan each updated patient record for
storage. Live document updates now
enable faster, more effective patient
care and unlock greater efficiencies
and revenue opportunities.
It was one client, Australia’s largest
private Hospital Group that made the
connection. Already using TIMG in
Western Australia and Queensland,
it wanted Infomedix as its record
management system and needed
the two companies to join forces.
CASE STUDY | TIMG AND INFOMEDIX
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21Freightways Annual Report 2025
Values alignment
With innovation and self-reliance
part of our DNA, we usually build
from scratch. However, the alignment
between Infomedix and TIMG was
undeniable. Guided by shared values,
both companies work with flexibility and
trust to minimise bureaucratic drag.
With the partnership comes another
unique selling point: a full service,
with a single point of contact.
Substantial
business impact
The impact on TIMG’s business has
been significant. What began as a
Horizon 2 initiative has quickly become
a flywheel for our core operations.
Customer expansion
With a new service offering, TIMG has
grown its presence across Australia and
added more hospitals to its client base.
Where once TIMG worked only with
hospitals in Queensland and Western
Australia, we are now engaged with sites
across Victoria and New South Wales.
By becoming deeply embedded as a
records digitisation supplier, TIMG’s
wider service offering is exposed to
more hospitals. This has expanded the
scope of existing contracts to include
additional services such as disaster
recovery and wet record remediation.
With this expanded footprint and
deeper integration of TIMG’s services,
the partnership has already delivered
significant revenue in just 18 months.
Unlocking future growth
The rollout continues, with more private
hospitals scheduled for onboarding
and a growing pipeline of interest from
other major healthcare networks.
And this is just the beginning.
The success of the partnership in the
healthcare industry could be readily
Driving
Horizon 2
Growth
replicated for other sectors where
secure, scalable records management
is just as critical. Infomedix’s digital
file structure can be readily adapted
to industries like legal, finance and
government, guided by TIMG’s
on-the-ground experience.
It’s a model that has proven its value
– and now offers a clear path for
future growth.
Digitisation is the future, and with this
partnership, TIMG is already there.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
22Freightways Annual Report 2025
Scott Hedgman was
just 17 when he started
working as a relief courier
driver at Freightways. Just
over thirty years later,
he’s leading teams all over
the country as General
Manager of NZ Couriers.
He credits his success to
the family atmosphere at
Freightways and support
from mentors and leaders
over the years.
BUILDING COMMUNITY AS
A COURIER DRIVER
The teenage Scott saw relief driving as
a good way to earn some extra cash
while he finished school and started
university. But it became much more
than that. He loved the job so much,
he skipped university and took on a
permanent contract with NZ Couriers.
“I loved building a business, being part
of the small community out in Waiuku,”
Scott Hedgman
GENERAL MANAGER
WORKPLACE: New Zealand Couriers
YEARS: Joined 1992
LEADING LEGACY | PEOPLE
Leadership grounded in experience
he explains. “You’re part of everyone’s
business – have a chat, have a coffee.
Then you’re part of this big beast, NZ
Couriers, working with all your courier
colleagues. Heck of a lot of fun.”
After six years as a contractor,
Scott took a role on the sales team,
building skills he took with him on
his OE. He spent time in sales for
FedEx in London, before returning to
New Zealand – and NZ Couriers.
LEANING INTO NEW OPPORTUNITIES
Back in New Zealand, Scott joined
the executive team as National Sales
Manager, a chance to use his experience
on the roads and on the sales team.
The following decade saw Scott working
hard to develop the NZ Couriers sales
team and capability, working with his
fellow executives to implement strategies
that delivered sustainable growth. He
went from National Sales Manager
of New Zealand Couriers to General
Manager of Sales for Freightways.
He launched projects now known as
Pricing for Effort, Kiwi Express Oversize,
and was there when Freightways
Global formed.
Then the challenges of COVID further
confirmed to him that he was in the
right place.
“Seeing the way we all mucked in to
do our part, the CEO sorting freight
every day, here doing the mahi –that
was the difference between us and
the other guys,” he explains.
DOWN-TO-EARTH LEADERSHIP
AND LEGACY
After thirty years working with
Freightways, Scott understands
the business better than most. His
main takeaway? It’s the people
who make the difference.
“It really is the people – down-
to-earth, gritty family leadership.
You’re all in it together.”
Now, as he steps into the role of GM
“It’s been lots of different jobs within jobs, but one thing
that’s been constant is the mentorship.”
at NZ Couriers, he’s committed to
continuing this legacy in his new role,
particularly as old hands retire.
“You feel a sense of responsibility to
uphold the spirit of the business. That
started with six men in ties driving
Morris Minors – they worked bloody
hard, not cutting corners, pushing
harder every single day. It’s important
we remember how we got to this point.
It’s our job to leave it in a better place.”
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23Freightways Annual Report 2025
Electric chill
The trailer that cools as it rolls
Across Big Chill’s fleet and within
the industry, refrigerated trailers
are usually kept cool using a diesel-
powered motor. Depending on the trailer
temperature, the diesel consumed
in the trailer can be between 3 and 6
litres an hour. The new electric trailer
removes the need for diesel and is
instead powered by a fuel cell, which
is charged by the kinetic energy of the
axles turning. The action of towing the
trailer produces the power required to
ensure controlled temperature integrity.
The standalone refrigeration operation
means the trailer continues to cool
even when the truck’s engine is off
or during loading and unloading.
Called the Fairfax ZE, the electric
trailer’s technology is the result
of collaboration between Fairfax
Industries, Transcold, and SAF-Holland.
Big Chill worked closely with the TR
Group, Transcold, and the New Zealand
Energy Efficiency & Conservation
Authority to access the electric trailer
in a commercially viable manner.
Operational emissions
reductions expected
Reviewing the results of the only
other temperature-controlled electric
trailer in New Zealand, Big Chill is
excited to learn about the potentially
positive environmental impact
the electric trailer will return.
The other electric trailer operating
on roads in New Zealand, delivered
diesel savings of around 2,800
litres over a 12 month period.
CASE STUDY | BIG CHILL
For Big Chill, the opening of its state-of-the-art
facility in Ruakura was a major milestone. Now it’s
celebrating another, albeit smaller, milestone – its first
fully electric refrigeration trailer, and only the second
of its kind in New Zealand.
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24Freightways Annual Report 2025
The extensive Big Chill network means
the electric trailer is expected to carry
more regular and heavier loads over
longer distances, potentially increasing
the opportunity to reduce emissions.
Micro benefits add up
The benefits of the electric trailer
go beyond fuel saving and reduced
emissions. Traditional diesel fridge
motors generate a constant drone
that can be testing for drivers,
especially the linehaul teams. The
quieter electric trailer creates a more
comfortable driving environment.
The quieter motor assists with
driver wellbeing and reduces the
noise in urban locations, where
restrictions can be a challenge.
There are also subtle operational
gains: the trailer’s regenerative
system reduces the need for braking,
which will deliver incremental
savings in wear and tear over time.
“Every linehaul driver is keen
to find out how it works –
and have a go a towing it.”
PHIL CLARKE, GENERAL MANAGER, BIG CHILL
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25Freightways Annual Report 2025
“We understand the responsibility as a leading provider in temperature-controlled transport
to get involved as early as we can, when it’s available to us.”
PHIL CLARKE, GENERAL MANAGER, BIG CHILL
A great addition to a
wider solution
While the electric trailer is an exciting
investment for Big Chill, the emissions
reduction enabled by this electric
trailer will be nominal compared to the
operational emissions generated by
the Big Chill vehicle fleet. The electric
trailer will help the team understand
the technology and build capability.
Big Chill is well positioned to support
further vehicle innovations where
they are suitable for the operational
requirements of its network and can
be integrated in a commercially viable
manner. New facilities like the 4 Green
Star rated Ruakura hub, have been
designed to incorporate electric chargers
for when the network requires it.
Supporting Industry
Innovation
The decarbonisation of refrigerated
transport remains a complex challenge,
requiring coordinated effort across
the industry and its value chain.
Industry-wide collaboration is essential
to accelerate the development and
deployment of viable low-emissions
technologies that meet the operational
demands of refrigerated freight
and logistics in New Zealand.
Big Chill is proud to play a role in
testing this innovative new technology
on its commercial network.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
26Freightways Annual Report 2025
James Robinson
OPERATIONS MANAGER
WORKPLACE: Fieldair Engineering
YEARS: Joined March 2017
Before stepping into
the world of aviation
logistics, James Robinson
was flying around in a
different way – racing
motocross professionally
across Europe and
Southeast Asia.
These days, he stays put at the
helm of one of Freightways’
most specialised and dynamic
businesses, Fieldair Engineering.
As Operations Manager, he’s across
everything from aircraft crewing and
civil aviation compliance to parts supply,
fuel logistics and bulk fuel servicing.
“It’s not your average operations role,”
James laughs. “But that’s the best
part. No two days are the same.”
James’ journey into aviation began
overseas, where he worked with
international carriers and around
Boeing fleets. Moving from motocross
to aviation may not seem like your
typical career path, but it reflects the
diversity of talent (and opportunity)
in the Freightways Group.
LEADING LEGACY | PEOPLE
From motocross tracks to flight paths
“I started with Parcelair. From there, I
worked in four roles across seven years
– each one expanding what I knew and
what I was responsible for,” he says.
James credits much of his professional
growth to Freightways’ support of
personal development. Not long after
joining Fieldair, he was nominated for
our leadership programme, (LEAD).
He says completing the course was a
significant turning point in his career.
“It opened up my mind a lot to how
you can build your capabilities across
different areas of this business,
instead of having tunnel vision on what
you can do. That was big for me.”
Over the years, that perspective has
proved invaluable. Under James’
watch, the team has taken on new
responsibilities, from expanding
support for the NZ Defence Force
to improving turnaround times for
parcel freight at regional airports.
“We’ve been able to scale up while
keeping our standards high,” James
says. “That’s only possible when you’ve
got a team that’s committed and a
business that backs new ideas.”
“It opened up my mind a lot to how you can build your
capabilities across different areas of this business,
instead of having tunnel vision on what you can do.
That was big for me.”
While James still coaches motocross
on weekends, it’s aviation that
fuels his weekdays, and Fieldair
provides him with the platform to
continue learning and growing, both
personally and professionally.
“There’s just so much capability in
this part of the business. It’s a really
exciting space to be in, and there’s
always something new on the horizon.”
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27Freightways Annual Report 2025
Supporting community
At Freightways, we recognise
the importance of being actively
involved in and supporting the
communities in which we work.
Across the Group, we support some 18 charitable
organisations and not-for- profits at a national
level, and many more at a local or regional level.
Our businesses are all encouraged to support causes
that resonate with their people and customer base,
be they national initiatives like the NZRSA, or more
grassroots support like local sports teams, school or
community projects. We are very proud of our people
who take time out to support others. Opposite is a list
of the organisations and causes we formally support.
Beanies for Babies
Cancer Society NZ
Child Cancer Foundation
Clontarf Foundation
I am hope
Keep NZ Beautiful
Kidscan
Life Flight
NZ Breast Cancer Foundation
NZRSA
On Being Bold
Ronald Donald House
Rotary Club Newmarket
RSPCA Queensland
Loud Shirt Day
Westpac Rescue Helicopter
Duffy Books
The Kidney Society
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28Freightways Annual Report 2025
On Being Bold
Dreaming Big is an event designed to empower Year
13 female students to be bold in seeking opportunities
and stepping into their future with confidence.
Schools are invited to select two students to attend
at no cost to either the school or the participants.
Throughout the event, students engage with an
inspiring line-up of speakers who share stories,
insights, and practical tips to help encourage
the students to set goals and dream big!
NZ Couriers were proud to support this meaningful
initiative by providing packaging and complimentary
courier services. Their reliable delivery ensured that
all participants received the materials they needed
ahead of the event helping to create a smooth
and positive experience for everyone involved.
By supporting Dreaming Big, NZ Couriers are backing
a cause that encourages young women to believe in
themselves and make a difference in the world.
www.onbeingbold.co.nz
Kidscan
Freightways are proud to be a principal charity partner
with Kidscan.
• More than 920 schools and 200 early childhood
centres are supported by KidsCan
• 300 more ECEs supplied food through
government funding
• 50,000 jackets and 40,000 pairs of shoes and
gumboots were distributed in 2024
• More than 5 million food items delivered to fuel
days of learning
KidsCan is our principal charity partner, working to
ensure Kiwi kids have the essentials they need to be
ready to learn. With a belief that education equals
opportunity, KidsCan’s mission is to give every child
a fair chance at a brighter future. Freightways is
incredibly proud to financially support their work
and help improve the lives of our next generation.
Each school term, KidsCan distributes food to its
partner schools. In Term 4 last year, a dozen of our
staff volunteered their time and energy to help pack
and dispatch this food from their Auckland warehouse.
We also got hands-on in the community, helping
at Onehunga Primary School’s Year 5 and 6 camp
fundraiser. Our team fired up the barbecue and served
hotdogs, with the funds raised going towards the
school’s trip.
www.kidscan.org.nz
18
CHARITABLE ORGANISATIONS AND
NOT-FOR-PROFITS SUPPORTED
RSPCA Queensland
TIMG Australia is a proud supporter and sponsor of
RSPCA Queensland and is honoured to support an
organisation whose comprehensive services deliver
measurable impact across the state. Through their
network of centres, RSPCA Queensland rescues,
rehabilitates, and rehomes thousands of animals
annually. Their commitment extends to wildlife care,
disaster response, lost animal recovery, and community
engagement, including educational programs that
promote long-term animal welfare awareness. With
professional dog training services and a dedicated team
of long-serving staff, RSPCA Queensland exemplifies
operational excellence and compassion. We are proud
to align with their mission and contribute to meaningful
outcomes for animals and communities alike.
www.rspcaqld.org.au
NZ Breast Cancer Foundation
This year’s Pink Ribbon Breakfast is Breast Cancer
Foundation NZ’s biggest yet, raising $3.6 million for breast
cancer research, early detection and patient support.
Ah-Leen Rayner, chief executive of Breast Cancer
Foundation NZ, said “We are immensely grateful to
Post Haste for generously donating their time and
resources to deliver 5,000 Pink Ribbon Breakfast host
kits all around the country. The kits are an essential
resource for our hosts, containing tips and sponsor
goodies to get them started with their fundraisers. We
wouldn’t be able to send these out without Post Haste,
who have been an invaluable partner for the past four
years. Thank you, Post Haste, for helping to make
Pink Ribbon Breakfast such a massive success!”
www.breastcancerfoundation.org.nz
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
29Freightways Annual Report 2025
Growth through efficiency
For Allied Express, the priority was
– and still is – delivering reliable
service to customers. Faced with
increases in the pre-Christmas peak
season, the company had previously
capped customer volumes, ensuring
it was only accepting business it was
sure could be handled effectively.
With a recent change in senior leadership
also came a mindset shift. What if,
instead of fearing the volume increase,
Allied Express people were empowered
to take on the challenge? After all,
a volume cap wasn’t just unhelpful
for customers, it also meant the
company was turning business away.
The right people,
mindset and tech
Underpinning this new approach
was some impressive technology.
Newly-installed sortation systems in
the Melbourne and Sydney locations
promised to uplift the company’s
handling capability, with automation,
accuracy and speed. But as Head of
“Volume isn’t the problem —
poor planning is. With the
right mindset and systems,
we proved we could thrive at
peak, not just survive it.”
ALAN COURT, HEAD OF
OPERATIONS, ALLIED EXPRESS
Operations Alan Court says, it needed the
right team and processes built around it.
Alan’s focus on ‘seeing around
corners’ meant that Allied Express
was better able to predict and
prepare for the oncoming freight
increase, particularly around the
Black Friday/Cyber Monday period.
“I call that the peak of peak,” says Alan.
The company implemented earlier
collection and processing to reduce
congestion at depots, and worked
with delivery teams to go the extra
mile as volumes increased.
CASE STUDY | ALLIED EXPRESS
Allied Express’ peak performance over peak season:
automation and empowered people.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
30Freightways Annual Report 2025
+ 9% volume
increase vs
Q4 2023
Decrease in
labour cost as
a % of revenue
0.12% pre-automation to 0.09% post-automation
MISDIRECT RATE IMPROVEMENT
Daily catch-ups allowed for incremental
improvements in delivery times,
accuracy and the always-essential
health and safety. With the team working
hard, the sortation systems were too.
Together, at their peak, the Sydney and
Melbourne sortation systems were
processing 4,500 parcels per hour.
Minimising manual handling didn’t
just save time and reduce errors, it
also made the operations safer.
Maintaining accuracy
and service levels
Allied Express customers were the real
winners, though. 2024’s peak volumes
were the highest ever, with no caps for
the first time since the COVID pandemic.
Allied Express was performing so well
that those experiencing delays with
other suppliers shifted to Allied.
The numbers tell their own story, too.
While volumes increased by 27% (vs
Q4, 2022) and by 9% (vs Q4 2023),
customer enquiries only increased by
6.7% (vs Q4 2023). Meanwhile, the
misdirect rate dropped from 0.12%
to 0.09% of the total volume.
Reclaiming customers
That volume increase can be attributed
to some organic growth, but also
includes freight from customers who’d
had to use other suppliers when faced
with Allied’s previous restrictions.
Cost savings across
the board
Greater accuracy and efficiency nearly
always translate into cost savings –
Peak ‘24 was no different, with average
handling costs decreasing from 12.4%
to 11.66% of revenue. Average cost per
item also dropped. Added up, Allied has
seen a revenue gain from Sydney and
Melbourne sortation of $3.2m to date,
with more than $2m of that just in FY25.
Passing the
peak-of-peak test
During November and December 2024,
and following the Black Friday sales,
volume increased by 27% compared
with the Q4 2022, and were up 9% on
Q4 2023. Customer enquiries naturally
lift alongside volume increases, but
these grew at a lower rate of 6.7%
through this period, indicating that
service levels remained strong.
Set for even bigger things
With proven performance through
the biggest peak period in its history,
Allied Express leadership has a
newfound confidence. Alan says
that with the team’s anything-is-
possible mindset, this is just the
start. The ongoing search for greater
efficiencies and a leadership team
empowered to make quick decisions
means Allied Express will continue
optimising outcomes for customers –
and business results along with it.
(Pre
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31Freightways Annual Report 2025
In an industry where
leadership has long
been defined by age,
gender and tradition,
Betty Zhang is rewriting
the playbook. Young,
Chinese-Australian and
female, Betty doesn’t
just lead Allied Express
– she’s redefining what
leadership looks like.
And the results speak
for themselves.
Under her guidance, Allied has
become Freightways’ most
successful operation in Australia.
But Betty’s impact goes far beyond
performance metrics. She’s changing
the culture of the business from the
inside out – elevating her people,
sharpening focus, and creating a
workplace where both staff and
customers genuinely come first.
“I never set out to be a GM,” she says.
“I started as a financial accountant,
Betty Zhang GM ALLIED EXPRESS
WORKPLACE: Allied Express YEARS: Joined 2018
LEADING LEGACY | PEOPLE
The quiet force behind Allied’s big leap forward
obsessed with numbers. But I got curious
about the stories behind the data.”
Over the past seven years, Betty
has worked in finance, operations,
business analysis, IT and customer
relationship management. One of
her proudest achievements is Allied’s
transition from manual freight handling
to a fully integrated sortation system
– a move that increased efficiency,
reduced error rates, and unlocked new
growth opportunities. But technology
wasn’t the real breakthrough.
“It wasn’t just about implementing
new technology,” Betty says. “It was
about rethinking how we manage
freight flow, reduce manual handling,
and enhance service delivery.”
She’s cultivated a culture where trust is
high, learning is constant, and everyone,
from depot staff to senior managers,
feels part of something bigger. She
regularly encourages her people to
step outside their comfort zones.
“Explore different areas of the business
– the more you understand how each
function connects, the more valuable
you become,” Betty explains.
When Betty joined Allied Express in
2018, she was on maternity leave and
looking for a way to stay connected
professionally. What she found
wasn’t just a job, but a purpose.
“The longer I work in logistics, the
more I realise how deeply rooted
I’ve become in the industry. I find
logistics absolutely fascinating – it’s
like solving jigsaw puzzles every day.”
With Betty at the helm, Allied Express
isn’t just moving freight – it’s also moving
forward, faster and better than ever.
“It’s been a learning curve, but I’ve
always felt supported. The Freightways
Group has backed me to lead, to grow,
and to challenge the status quo – and
that support means everything.”
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32Freightways Annual Report 2025
Focusing on ethical supply
chain practices
What we’re doing to tackle
modern slavery risks
When Freightways listed on the
Australian Securities Exchange (ASX),
it was a significant milestone that
also came with new legal obligations.
Although our Australian businesses
were already required to report on
how they were working to identify and
address modern slavery risks in their
operations and supply chains under
Australia’s Modern Slavery Act, our
new dual-listed status meant this now
extended to addressing the same in
the operations and supply chains of
our New Zealand businesses as well.
We are now 18 months on, and while
there’s still more work to be done, we’ve
taken real, practical steps to improve
and lead responsibly by introducing
a programme addressing modern
slavery risk that now extends across
the entire Freightways Group. We are
watching the New Zealand legislative
landscape with interest to see when
our New Zealand competitors will
become subject to similar obligations.
Getting the basics right
It has taken time to review key aspects
of our New Zealand businesses,
examining how we hire people and
manage contractors, and how different
teams operate. From that work, we
have identified areas of risk and are
developing plans to address those risks.
We also took a close look at the first
tier of our supply chain, assessing over
5,000 suppliers across more than 30
countries to identify those that might
carry a higher risk based on their location
and the industries in which they operate
and have developed a Supplier Code of
Conduct which we asking our existing
high risk and high spend suppliers to
sign up to. We intend to extend our risk
mitigation efforts further in FY26.
Lifting awareness
across teams
Policy only goes so far, so providing
training, especially for those involved in
buying goods and services, has been a
big focus. This training helps our teams
understand what modern slavery looks
like, where risks may appear, and what
to do if they suspect something. The
response has been encouraging, and
for many of our people, it’s been an
eye-opening experience, highlighting
how global supply chain risks can
ripple all the way to our shores.
More than box-ticking
This work isn’t happening in isolation
– it’s part of a broader shift in how
we do things at Freightways. From
sustainability and climate reporting
to risk management and business
governance, we’re picking apart our
processes and building stronger
foundations where needed. Tackling
modern slavery and embedding ethical
supply chain practices are part of that.
More importantly, our people are
proud of the direction we’re heading.
Compliance may have been the catalyst,
but the motivation runs deeper.
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33Freightways Annual Report 2025
Sustainability update
Assessing our
material issues
We recently re-assessed our material
issues to check the relevance of our
environmental, social and governance
(ESG) activities. This materiality
assessment identified the issues
that continue to impact and are most
important to our business success
and that internal and external
stakeholders most engage with.
Materiality assessment
The materiality assessment involved
an external party engaging with
internal and external stakeholders,
including board members, staff,
executives, contractors, suppliers,
and investors to obtain their views.
A “double materiality” assessment
approach was used considering both
“outside in” financial materiality
(how sustainability matters could
impact our financial performance)
and “inside out” impact materiality
(how our activities could impact
society and the environment).
Through this process, we identified
four of the United Nation’s Sustainable
Development Goals (SDGs) as most
relevant to our operations, value chain,
and strategic objectives. These goals
will guide our sustainability efforts
and our non-financial reporting.
Critical
Critical
Significant
Significant
Important
Important
Informative
Waste
renewal and
management
SDG13
Business
resilience
SDG9
Contractor
engagement
SDG8
Good health
and wellbeing
SDG3
Customer satisfaction
SDG8
GHG emissions
SDG13
Employee
engagement
SDG8
Innovation
SDG9
Informative
Minimal
Minimal
BUSINESS IMPACT
IMPORTANCE TO STAKEHOLDERS
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
34Freightways Annual Report 2025
OUR PRIORITIES
The four priority SDGs are:
SDG 3
Good health
and wellbeing
Our activities impact the health
and wellbeing of our workforce,
contractors, and the communities in
which we operate. We are focused on
promoting safe working environments
and reducing health-related risks
associated with our operations.
SDG 8
Decent work and
economic growth
We are focused on enabling decent
and sustainable livelihoods across
our workforce and value chain. This
includes providing contract drivers
with sustainable earning opportunities
and supporting the development of our
employees. We are taking steps to better
understand, manage and mitigate the risk
of modern slavery in our supply chain.
SDG 9
Industry, innovation
and infrastructure
We are focused on increased resource-
use efficiency in our company-
controlled heavy vehicle fleet and
operations. We are supporting
domestic technology development
and innovation in our network where
it makes operational sense.
SDG 13
Climate
action
We acknowledge the growing physical
and transition risks posed by climate
change to our operations and value chain.
We are focused on understanding our
impact, how climate change may impact
our operations and transition planning.
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35Freightways Annual Report 2025
Our activities impact
the health and wellbeing
of our workforce,
contractors, and the
communities in which we
operate. We are focused
on promoting safe
working environments
and reducing health-
related risks associated
with our operations.
SDG 3
Good health and wellbeing
WORKPLACE SAFETY AND
SKILLS TRAINING
Across the Group, our essential health
and safety training programmes
run to keep our people safe and our
workplaces efficient. Training includes
Dangerous Goods Awareness and
Handling, Manual Handling, Workplace
Health and Safety, Fire Safety, First
Aid Training, Forklift Operation and
specialist equipment training.
LEVERAGING TECHNOLOGY
FOR SAFER OUTCOMES
We are trialling the use of AI
technology footage on some of our
operational sites. This technology
analyses our CCTV footage and detects
instances where there may not be a
safe distance between forklifts and
people. It then alerts our managers
so they can use the captured images
of these events as a learning tool
with our teams, to help reduce the
risk of potential future incidents.
FORKLIFT SAFETY
Forklifts are used across the Group
and continue to be a focus.
• Geofencing speed technology is
being explored to automatically
control the speed of the
forklifts in different areas.
• Forklifts are being equipped with
a minimum standard of safety
features, including seatbelt alarms,
halo warning lights, impact alert
software and all forklifts will
be speed limited to a maximum
of 10kph. Our aim is to have all
forklifts in the Group, meeting
or exceed the minimum safety
specifications, by the end of FY26.
• We employed a dedicated forklift
training manager to oversee
the forklift simulator training
programme in Auckland and to
further explore the application of
simulators in more locations on
both in New Zealand and Australia.
CRITICAL RISK ASSURANCE
We continue to expand our critical risk
identification and assurance processes
involving front-line teams, subject
matter experts, key influencers and
decision makers in identifying risks and
inspecting risks to provide assurance
that work is being done as imagined.
EAP
We offer access to confidential external
counselling for those suffering from
physical and mental issues. The service,
provided at no cost to our people, also
covers financial and partner counselling.
LOST TIME INJURY FREQUENCY
RATE (LTIFR)
16.6
Basis for calculation:
Total number of Lost Time Injuries x 1,000,000
Total Exposure Hours
TOTAL RECORDABLE INJURY
FREQUENCY RATE (TRIFR)
14.4
Basis for calculation:
Total number of injuries requiring medical
attention (No Lost Time) x 200,000
Total Exposure Hours
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36Freightways Annual Report 2025
We are focused on enabling
decent and sustainable
livelihoods across our
workforce and value
chain. This includes
providing contract
drivers with sustainable
earning opportunities and
supporting the development
of our employees. We
are taking steps to better
understand, manage and
mitigate the risk of modern
slavery in our supply chain.
SDG 8
Decent work and economic growth
SUSTAINABLE CONTRACTOR
EARNINGS
A large portion of our business uses a
contract driver model, where contractors
manage their own businesses and are
directly rewarded for their productivity
and customer engagement. This model
provides mutual benefit: it enables
Freightways to respond flexibly
to changes in volume and market
conditions, while offering contractors
the opportunity to earn sustainable
returns. Initiatives such as Pricing
for Effort (PFE) have ensured that
customer pricing reflects the resources
and effort invested by contractors
in each delivery. Our contractors
are supported by dedicated teams
across account management, sales,
customer service, and administration,
allowing them to focus on delivery.
DEVELOPING OUR PEOPLE
We are focused on helping our
employees gain knowledge and
experience. Our learning programmes
further develop our people, which in
turn builds our internal capabilities.
We offer workplace training and
leadership courses across Freightways,
from induction to business
fundamentals and people leadership.
SUPPLY CHAIN TRANSPARENCY
We are continuing to take steps to better
understand, manage and mitigate the
risk of modern slavery in our supply
chain. You can read more about the
steps we have taken across the Group to
manage modern slavery risks on page 33.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
37Freightways Annual Report 2025
We are focused on
increased fuel efficiency
in our company-controlled
heavy vehicle fleet and
operations generally. We
are supporting domestic
technology development
and innovation in our
network where it makes
operational sense.
SDG 9
Industry, innovation and
infrastructure
MODERN AND FUEL-EFFICIENT FLEETS
Across the Group, efficient fuel use and
improved vehicle utilisation continues
to be an operational focus. This is
apparent in some of the steps taken
in the Big Chill business in the year.
Big Chill continued its focus on
maintaining a modern, fuel-efficient
vehicle fleet. Nine new Euro 6-compliant
metro trucks were added to the
fleet, improving fleet fuel efficiency.
Orders were placed for five new Euro
6-compliant tractor units to replace
older Euro 5 models. The Euro 6
standard offers improved resource-
use efficiency compared to the
vehicles being replaced, contributing
to resource efficiency objectives.
SUPPORTING DOMESTIC INNOVATION
Big Chill partnered with vehicle lessor
TR Group, the Energy Efficiency &
Conservation Authority and Transcold to
introduce an electric refrigerated trailer
into its network. You can read more
about the electric trailer on page 24.
NETWORK OPTIMISATION
Across the Group, we continue to
review our network to understand
where changes can be introduced to
reduce fleet requirements, reduce
overall kilometres travelled, optimise
loads and streamline operations in
congested areas.
A new Big Chill facility in New Plymouth
became operational in August 2025
and is expected to deliver network
optimisation benefits.
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38Freightways Annual Report 2025
We acknowledge the
growing physical and
transition risks posed
by climate change to our
operations and value
chain. We are focused
on understanding our
impact, how climate
change may impact
our operations and
transition planning.
SDG 13
Climate action
FIRST CLIMATE STATEMENT
In October 2024 we published our
first Climate Statement, as required
by the Aotearoa New Zealand Climate
Standards (NZ CS). The Climate
Statement provides information about
the risks and opportunities that climate
change presents for Freightways,
how these risks and opportunities
are governed, our risk management
processes, how climate change impacts
Freightways today and how it may
impact Freightways in the future.
TRANSITION PLANNING
AND MEASUREMENT
Freightways has focused on developing
the transition plan aspects of its strategy.
The transition plan aspects of its strategy
replaces the former Environmental
Statement and will be reported in
Freightways’ second Climate Statement.
Freightways has continued to progress
the measurement of greenhouse
gas emissions across all scopes.
These disclosures will be included
in its second Climate Statement.
SECOND CLIMATE STATEMENT
Freightways will report its second
Climate Statement in September.
Once released it will be available on
the Company’s website at h t tp s://
www.freightways.co.nz/investor-
relations/annual-reports/
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39Freightways Annual Report 2025
Directors Report
The Directors of Freightways Group Limited
(Freightways) resolved to submit the following report
with respect to the financial position of the Group
as at 30 June 2025 and its financial performance
and cash flows for the year ended on that date.
DIRECTORS
The names and profiles of the Directors of the
Company in office at the date of this report are:
Mark Cairns | BE(Hons), BBS, MMGT, FEngNZ, CF Inst D
Mark was appointed a Director in April 2021. He was
Chief Executive of Port of Tauranga, New Zealand’s
largest and most successful port, from 2005 until
his retirement in June 2021 to pursue a full-time
governance career. Mark was previously Chief
Executive of Toll Owens Limited and Owens Cargo
Company Limited. Mark has extensive experience in
logistics, infrastructure, contracting and significant
exposure to capital markets. Mark is also a director
of Auckland International Airport Limited.
Grant Devonport | BBus, GDipBA
Grant was appointed a Director in November 2024. He
was appointed a Non-Executive Director of Auckland
International Airport in October 2024 after finishing his
executive career as Chief Financial Officer of Australian
Pacific Airports Corporation (APAC), owner of both
Melbourne and Launceston Airports.
Previously Grant worked at Toll Holdings from 2006-
2015 where he was CFO of both NZ (2006- 2008) and
Group CFO (2011- 2015) up to the time of the sale of
the business to Japan Post in 2015. Grant’s portfolio
with Toll included finance, Treasury, investor relations,
procurement, property, safety and technology.
Abby Foote | LLB (Hons), BCA, CF Inst D, INFINZ (cert)
Abby was appointed a Director in June 2018. She is a
professional director with over 15 years governance
experience, with qualifications in both law and
accounting. Abby has experience in a range of senior
management, finance and legal roles, with a focus
on corporate finance and commercial transactions.
Abby is currently a director of KMD Brands Limited.
David Gibson | B.Com, LLB (Hons)
David was appointed to the Board in April 2022.
David is a professional director and has a strong
background in strategy and finance with over 20 years
investment banking experience, including as Co-Head
of Investment Banking in New Zealand for Deutsche
Bank and Deutsche Craigs. During his finance career
David has advised on many of New Zealand’s largest
capital market transactions. David is also a director
of Contact Energy Limited, and Goodman NZ.
Peter Kean | PMD Harvard
Peter was appointed a Director in July 2016. He
brings to Freightways many years of senior executive
experience with the Lion group of companies in both
New Zealand and Australia. Peter's last executive
roles were as Managing Director of Lion Nathan
New Zealand and Managing Director of Lion Dairy
and Drinks, based in Melbourne. Peter retired from
Lion in 2014 and has since developed his career in
governance. Peter is involved in a number of private
companies both in New Zealand and in Australia.
Fiona Oliver | LLB, BA, CF Inst D
Fiona was appointed a Director in July 2021. She is a
professional director, holding governance roles across
a range of business sectors including infrastructure,
retirement villages, technology, and financial
services. She is a board member of the New Zealand
Superannuation Fund, a director of Summerset Group
Limited, Gentrack Group Limited, Clarus (previously
the First Gas Group), Listed Investment Vehicles
Marlin Global, Barramundi and Kingfish and Wynyard
Group Limited (in liquidation). Fiona’s executive
career was in financial services in New Zealand and
overseas, managing BT Funds Management, Westpac’s
investment arm, and AMP’s Wealth Management
division in New Zealand. In Sydney and London, Fiona
managed the Risk and Operations function of AMP’s
global private capital division. Fiona has also practised
as a senior corporate solicitor in New Zealand and
overseas, specialising in mergers and acquisitions.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
40Freightways Annual Report 2025
Independence of the Board
The Board has determined for the purposes of the NZX
Listing Rules that, as at 30 June 2025, Mark Cairns,
Grant Devonport, Abby Foote, David Gibson, Peter
Kean and Fiona Oliver are independent Directors.
The Board assessed each Director's independence
with regard to the NZX Listing Rules, the interests and
relationships of each Director and by considering each
of the factors set out in Table 2.4 of the NZX Corporate
Governance Code. The Board is satisfied that none of the
factors set out in Table 2.4 apply to any of the Directors.
Board skills matrix
The Board focuses on governance, strategy and
the oversight of the performance of the different
Freightways businesses and brands. The Directors
bring both proven experience in governance and
a strong background in business to their decision
making. Together, they provide the wide-ranging
skills needed to ensure the Board has the expertise
to set and approve strategic direction, make senior
management appointments, monitor performance,
manage risk and oversee our many stakeholder
relationships. The Board Skills Matrix below sets
out the skills of the Directors against the range
of expertise Freightways requires to succeed.
Skills & Experience: AreaSkills & Experience: Description
GovernanceUnderstanding of legal and regulatory frameworks
underpinning corporate governance principles
51
New Zealand & Australian
Listed Markets
Experience as a Non-Executive Director
of a listed entity (NZ or Australian)
51
Audit and RiskExperience in identifying, assessing and
monitoring systemic, existing and emerging
financial and non-financial risks
33
Business Operations
at Scale
Experience operating a large and/or
complex company or group of companies in
multiple countries over a period of time
42
International Transport,
Logistics, & Sector
Aligned Expertise
Experience and expertise in the international
transport, logistics, freight or associated sectors
213
Marketing, Brand, & SalesExperience in brand development, customer
relationships and supply chain
222
IT Platforms and
Digital Innovation
Experience in technology and innovation
and the impact on business operations
and customer experience
42
Australian MarketExperience and understanding of the
Australian market, including the macro-
political and economic environments
132
Health & SafetyExperience with the development and oversight
of frameworks focused on the identification,
assessment and assurance of operational
workplace, health and safety risks
51
Sustainability and
Climate Change
Understanding and experience in managing
the impact of the Group on the environment
and community, as well as the impact of
climate change on Group operations
141
EntrepreneurialExperience in starting, managing and scaling
new businesses and innovations
312
H = High competency, knowledge and experience P = Practised/direct experience A = Awareness
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
41Freightways Annual Report 2025
Principal activities
The principal activities of the Group during the year
ended 30 June 2025 were the operation of express
package & business mail services and information
management services.
Consolidated result for the year
2025
$000
2024
$000
Operating revenue1,289,5591,209,151
Operating profit before interest and income tax146,089136,358
Net interest and finance costs(34,056)(35,062)
Profit before income tax112,033101,296
Income tax(31,925)(30,370)
Profit for the year80,10870,926
Directors holding office during
the year were:
PA R E N T:
Mark Cairns (Chairman)
Grant Devonport (appointed 25 November 2024)
Abby Foote
David Gibson
Peter Kean
Fiona Oliver
Mark Rushworth (retired 23 October 2024)
SUBSIDIARIES:
Mark Troughear
Stephan Deschamps
Stephen Micallef (Australian subsidiaries only)
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
42Freightways Annual Report 2025
Approved remuneration of Directors
(effective 1 November 2023):
Director remuneration is paid from the total director
fee pool that was last approved by shareholders at the
Annual Shareholders Meeting on 26 October 2023.
Group Fees (per annum)
Position
2025
$
2024
$
Board of DirectorsChair185,000185,000
Board of DirectorsMember100,000100,000
Audit & Risk CommitteeChair23,00023,000
Audit & Risk CommitteeMember14,00014,000
People & Safety CommitteeChair19,00019,000
People & Safety CommitteeMember10,00010,000
Committee work pool (if required)42,14542,145
Total annual fee pool limit965,000965,000
Remuneration received by Directors
Directors of the Company’s subsidiaries do not
receive any remuneration or other benefits in their
capacity as a director of those companies, except
indemnity and insurance referred to in the Directors’
and Officers’ Liability Insurance section on page 51.
Directors of Freightways (Parent company)
2025
$
2024
$
Mark Cairns209,000199,333
Grant Devonport (appointed 25 November 2024) 81,510-
Abby Foote123,000122,000
David Gibson114,000109,333
Peter Kean119,0001 17, 6 67
Fiona Oliver110,000106,667
Mark Rushworth (retired 23 October 2024)36,667106,667
Total non-executive Directors793,177761,667
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43Freightways Annual Report 2025
Chief Executive’s remuneration total achieved (vested)
* To be determined after vesting date.
FY25FY24FY23FY22
Fixed annual remuneration (FAR) ($000)$1,048$1,013$945$900
STI ($000 and % of FAR)$47245%$46045%$40343%$39644%
LTI ($000 and % of FAR)**$788%$26728%$29833%
Chief Executive’s remuneration
Financial YearFixed RemunerationShort Term Incentive (STI)Long Term Incentive (LTI)Total
Base Salary
Other Benefits
(including
statutory
benefits)Earned
Amount
Earned as a %
of maximum
Award
Total cash
– based
remuneration
Earned
Number of
Shares Vested
% of Maximum
Awarded for
the relevant
performance period
Market Price at
Vesting Date
(Fixed
remuneration
+ STI + LTI
Vested)
$000$000$000%$000%$ per share$000
20251,0129846083788,418389.251,648
20249771104037726732,554918.201,757
Chief Executive’s remuneration maximum total potential (award)
FY25FY24FY23FY22
Fixed annual remuneration (FAR) ($000)$1,048$1,013$945$900
STI ($000 and % of FAR)$57755%$55755%$52055%$49555%
LTI ($000 and % of FAR)$52450%$50750%$47350%$45050%
The remuneration of the CEO in the remuneration tables above includes the STI and LTI incentive payments made during the year ended 30 June 2025 in respect of the
2024 financial year performance. No amount is included above in respect of incentive payments for the 2025 financial year, as these were paid in August 2025.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
44Freightways Annual Report 2025
Five-year summary – Chief Executive’s remuneration
Financial yearCEO
Total remuneration
$000
Percentage STI against
maximum
%
Percentage vested LTI
against maximum
%
Span of LTI performance
period
%
2025Mark Troughear1,6488338FY22-FY24
2024Mark Troughear1,7577791FY21-FY23
2023Mark Troughear1,7939084FY20-FY22
2022Mark Troughear1,668100100N/A
2021Mark Troughear97088-N/A
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
45Freightways Annual Report 2025
Breakdown of Chief Executive’s
pay for performance (related to
FY25 objectives)
DescriptionPerformance measuresAchieved (%)
STI55% of base salary. Based
on a combination of
financial and non-financial
performance measures.
70% weighting on achievement of Board
approved earnings before interest,
tax and amortisation (EBITA).
100%
30% weighting on individual performance
comprising strategy development & delivery, health
& safety and carbon emissions reduction strategy.
33%
LT IConditional awards of shares
under long-term incentive
scheme with a vesting period of
3 years ending 30 June 2025.
Relative TSR (rTSR) – Based on Freightways’
TSR compared to that of the constituents of the
NZX50 Index over the vesting period. 50% of the
rTSR Share Rights eligible for vesting will vest
if Freightways outperforms the NZX50 Index
median, pro-rated up to 100% for achieving
the 75th quartile of the Index constituents.
94% achieved and
will be exercised in
the first half of FY26
Absolute TSR (aTSR) – Up to 50% of Share
Rights will vest based on net operating
profit after tax (NOPAT) exceeding a cost of
capital hurdle over the vesting period.
33% achieved and
will be exercised in
the first half of FY26
Chief Executive’s STI Structure
ObjectiveMaximum % potential% of objective achieved
EBI TA70%100%
Health and Safety (TRIFR)5%0%
Health and Safety (audit)5%100%
Strategic objective15%0%
Climate5%100%
Total100%82%
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
46Freightways Annual Report 2025
Three-year summary
– TSR performance
75th Percentile
Freightways Group Limited
50th Percentile
S&P NZX 50 Index
Chief Executive’s LTI summary
Awarded during the reporting periodShares Vested during the reporting period
Shares issued/transferred
during the reporting period
Share
Rights
Award
Date
Vesting
Date
Balance
of share
rights at
30 June
2024
Share
rights
awarded
Market
Price at
Award ($)
Share rights
lapsed
during the
reporting
period
Shares
Vested
Market Price
at Vesting
Date
Vesting
Date
Shares
issued /
transferred
Market price
at issue /
transfer date
Issue /
transfer
date
Balance
of share
rights at
30 June
2025
22 October
2024
August
2027
-54,3989.75--To be
determined on
transfer date
August
2027
-To be
determined
on transfer
date
N/A54,398
25 October
2023
August
2026
59,259-8.05--To be
determined on
transfer date
August
2026
-To be
determined
on transfer
date
N/A59,259
24
November
2022
August
2025
46,462-9.99--To be
determined on
transfer date
August
2025
-To be
determined
on transfer
date
N/A46,462
28 October
2021
August
2024
22,448-12.7114,0308,4189.25August
2024
8,4189.2521 August
2024
-
1 . 0 7. 2 0 2 2
0%
20%
40%
60%
80%
100%
120%
140%
160%
TSR%
1.10.20221.01.20231.04.20231 . 0 7. 2 0 2 31.10.20231.04.20241 . 0 7. 2 0 2 41.10.20241.01.20251.04.2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
47Freightways Annual Report 2025
Chief Executive’s remuneration
performance pay for FY25
400
200
0
600
800
1,000
1,200
1,400
1,600
1,800
2,000
$000
FixedOn-planMaximum
Base Salary & Benefits
Annual variable
LTI vested during the year
Remuneration of other officers
Fixed remuneration of other officers, not being Directors of the Company, representing
a range from 78.5% to 80.5% of their total remuneration, is benchmarked to
market and consists of base salary and matched KiwiSaver contributions up to a
maximum of 3%. The officers participate in an at-risk short-term incentive (STI)
scheme, representing a range from 19.5% to 21.5% of their total remuneration,
that reflects the achievement of predetermined company profit levels and
individual performance objectives aligned to business strategy and goals. In
addition, the officers receive a range from 1% to 2% of earnings before interest,
tax and amortisation (EBITA) over a Board approved EBITA target. The officers
also participate in the Freightways Senior Executive Performance Share Plan
(the ‘Plan’) described in Note 22 of the Financial Statements by way of an annual
allocation of Performance Share Rights (PSRs). The PSRs have a 3-year vesting
period and are subject to the achievement of financial hurdles, as described in
Note 22. Both the STI scheme and Senior Executive Performance Share Plan are
variable, performance-based incentives and are only awarded if specific financial
and non-financial performance hurdles are met, and at the discretion of the Board.
Remuneration framework
The remuneration framework of the Company is detailed in the Company’s
Remuneration Policy (which can be found at https://www.freightways.co.nz/
about/corporate-governance/) and is overseen by the People & Safety Committee.
Further information on the Remuneration Policy and the People & Safety
Committee is set out within the Corporate Governance Statement on page 117.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
48Freightways Annual Report 2025
Remuneration of employees
The following table notes the number of employees or
former employees, not being Directors of the Company,
within the Group who, during the reporting period,
received remuneration and any other benefits in their
capacity as employees, the value of which was or
exceeded $100,000 per annum, in brackets of $10,000:
Group
20252024
$100,000 – $109,999211168
$110,000 – $119,999105112
$120,000 – $129,9999598
$130,000 – $139,9997167
$140,000 – $149,9995922
$150,000 – $159,9993227
$160,000 – $169,9993031
$170,000 – $179,9992723
$180,000 – $189,9992015
$190,000 – $199,9991619
$200,000 – $209,9991416
$210,000 – $219,9991617
$220,000 – $229,9991211
$230,000 – $239,99994
$240,000 – $249,99957
$250,000 – $259,99977
$260,000 – $269,99995
$270,000 – $279,99925
$280,000 – $289,99952
$290,000 – $299,99912
$300,000 – $309,99944
$310,000 – $319,99971
$320,000 – $329,99942
Group
20252024
$330,000 – $339,99943
$340,000 – $349,999-4
$350,000 – $359,9991-
$360,000 – $369,99912
$370,000 – $379,999-2
$380,000 – $389,99912
$390,000 – $399,99921
$400,000 – $409,999-2
$410,000 – $419,999-1
$430,000 – $439,9992-
$440,000 – $449,9991-
$450,000 – $459,999-1
$470,000 – $479,999-1
$510,000 – $519,9991-
$560,000 – $569,999 -1
$580,000 – $589,9991-
$600,000 – $609,999-1
$610,000 – $619,9992-
$640,000 – $649,999-1
$790,000 – $799,9991-
$840,000 – $849,999-1
$1,600,000 – $1,699,9991-
$1,750,000 – $1,759,999-1
Total Employees779689
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
49Freightways Annual Report 2025
Entries in the
Register of Directors’ interests
The Register of Directors’ Interests records that
the following Directors of Freightways Group
Limited have an equity interest in the Company.
DirectorFully-paid ordinary shares
Mark Cairns50,000
Grant Devonport 12,000
Abby Foote14,665
David Gibson20,812
Peter Kean51,500
Fiona Oliver4,359
The following table shows transactions recorded in respect of securities acquired or disposed
of by Directors of Freightways Group Limited during the year ended 30 June 2025:
Directors are not required to hold any equity securities in the Company although it is encouraged.
Number Acquired
/ (Disposed)
Consideration
per share
Grant Devonport
Initial disclosure of ordinary shares on 28 November 20245,000n/a
On-market purchase of ordinary shares on 25 February 20254,000$10.6822
On-market purchase of ordinary shares on 7 May 20253,000$10.15
Fiona Oliver
On-market purchase of ordinary shares on 10 September 20241,000$9.42
On-market purchase of ordinary shares on 10 September 2024500$9.4 4
FREIGHTWAYS GROUP LIMITED SHARES
At 30 June 2025 Directors of Freightways Group Limited held the following number of equity
securities in the Company:
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
50Freightways Annual Report 2025
Other interests
Listed below are details of the entries made in the Interests Register of the
Company during the year, together with the existing entries as at 30 June 2025.
NameName of company/entityNature of interest
Abby FooteKMD Brands LimitedDirector
David Gibson Goodman Property Services group companies
(including GMT Bond Issuer Limited)
Director
NZME LimitedDirector**
Rangatira Limited Director**
Contact Energy LimitedDirector*
Fiona OliverBarramundi LimitedDirector
Gentrack Group LimitedDirector
Clarus (previously First Gas group companies)Director
Kingfish LimitedDirector
Marlin Global LimitedDirector
Guardians of New Zealand SuperannuationBoard member
Summerset Group Holdings LimitedDirector
Grant DevonportAuckland International AirportDirector
Mark CairnsAuckland International AirportDirector
Ministerial Advisory Group on the
Kiwirail Interisland Ferry service
Independent
expert advisor**
Mark Rushworth
[to 23 October 2024]
UP EducationGroup Chief
Executive
Peter KeanTrojan Holdings LimitedDirector
*Entry added by notice given by the Director during the year.
**Entry removed by notice given by the Director during the year.
Directors’ and Officers’ liability insurance
Deeds of indemnity have been granted by the Company in favour of the Directors of
the Company and its subsidiaries, to the fullest extent permitted by the Companies
Act 1993. In accordance with the deeds of indemnity, the Company has insured all
its Directors and the Directors of its subsidiaries against liabilities to other parties
(except the Company or a related party of the Company) that may arise from their
positions as Directors. Freightways’ liability insurance also covers Officers of the
Group. The insurance does not cover liabilities arising from criminal actions.
For and on behalf of the Board this 18th day of August 2025.
Mark Cairns
CHAIRMAN
Abigail Foote
DIRECTOR
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
51Freightways Annual Report 2025
53 Independent Auditor’s Report
59 Income Statement
60 Statement of Comprehensive Income
61 Statement of Changes in Equity
62 Balance Sheet
64 Statement of Cash Flows
65 Notes to the Financial Statements
FINANCIAL REPORT
52
52Freightways Annual Report 2025
PricewaterhouseCoopers
PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, www.pwc.co.nz
© 2025 PricewaterhouseCoopers New Zealand. All rights reserved. ‘PwC’ and ‘PricewaterhouseCoopers’ refer to the New Zealand
member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see
www.pwc.com/structure for further details
pwc.co.nz
Independent auditor’s report
To the shareholders of Freightways Group Limited
Our opinion
In our opinion, the accompanying consolidated financial statements (the financial statements) of Freightways Group Limited (the Company), including its subsidiaries
(the Group), present fairly, in all material respects, the financial position of the Group as at 30 June 2025, its financial performance, and its cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and International Financial Reporting Standards Accounting
Standards (IFRS Accounting Standards).
What we have audited
The Group's financial statements comprise:
• the balance sheet as at 30 June 2025;
• the income statement for the year then ended;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs (NZ)) and International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
53
PwC
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including
International Independence Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards Board and the International Code of Ethics
for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code),
and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In our capacity as auditor and assurance practitioner, our firm also provides review and other assurance services. Subsequent to reporting date, our firm has also been
engaged to carry out an assignment in the area of executive long term incentives market practice benchmarking. In addition, certain partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business. The firm has no other relationship with, or interests in, the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current year.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters.
Description of the key audit matter How our audit addressed the key audit matter
Revenue recognition
The Group’s operating revenue of $1,290 million for the current year
primarily consisted of express package, refrigerated transport
and storage, postal, storage and handling, destruction activities and
digital services, as disclosed in Note 3 of the financial statements.
Revenue recognition under NZ IFRS 15 Revenue from Contracts with
Customers (NZ IFRS 15) is a key audit matter due to the number
of revenue streams and the information systems used to record revenue.
We obtained an understanding and evaluated the Group’s processes and controls relating
to revenue recognition for each material revenue stream.
Our audit procedures in relation to revenue recognition for each material revenue stream
included:
• challenging the material judgements made by management in applying the standard,
including assessing a sample of individual contracts against the requirements of NZ IFRS
15, particularly the determination of performance obligations;
• performing tests of certain controls to ensure the controls in place are effective to prevent
and detect material misstatement at a transactional level;
• performing substantive analytical procedures to ensure the accuracy of revenue for
specific revenue streams, including considering the reliability of the data used in the
analytics;
• testing a sample of revenue transactions to assess the completion of performance
obligations;
• testing a sample of revenue transactions to assess the accuracy of pricing to supporting
documentation;
• for a sample of transactions within accounts receivable during the year we obtained
either confirmation of the amount owing from the customer, or evidence of the amount
owing from alternative procedures including testing of subsequent receipts or shipping
documentation; and
• assessing the disclosures made against the requirements of the accounting standards.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
54Freightways Annual Report 2025
PwC
Description of the key audit matter How our audit addressed the key audit matter
Impairment assessment of goodwill and indefinite lived brand
names
As disclosed in Note 14, the Group has goodwill and brand names
with carrying values of $408.1 million and $156.6 million respectively
(30 June 2024: $411.1 million and $157.4 million).
Goodwill and brand names are allocated to cash-generating units
(CGUs) for the purpose of impairment testing.
Management performed an annual impairment assessment using value
in use (VIU) models to determine whether the carrying value of assets
held by each CGU is recoverable.
The carrying value of goodwill and indefinite lived brand names
is an area of focus for the audit and a key audit matter as it is
a significant amount on the balance sheet and involves estimation
and judgement about future business performance, which includes
certain key assumptions such as revenue growth, earnings before
Interest, tax, depreciation and amortisation (EBITDA) margin, terminal
growth rate and the pre-tax discount rate.
For each CGU, the recoverable amount based on the value in use
calculation was higher than the carrying value of the CGU and as
a result, no impairment charge was recognised.
Based on the level of headroom and the sensitivity to impairment of each CGU, our audit
procedures relating to the estimates and judgments in the VIU models included the following:
• gaining an understanding of the business process and controls applied by management
in preparing the impairment assessments;
• considering the appropriateness of the determination of CGUs and recalculating
the carrying amounts of net assets;
• evaluating whether corporate costs have been appropriately considered;
• testing the mathematical accuracy of the models used to determine the VIU;
• reviewing historical years actual revenue and EBITDA against the original budgeted
performance to determine the reliability of the budgeting process and considering
the impact on forecast performance;
• obtaining an understanding of the current and forecast outlook for the business and
management’s basis for determining the key assumptions in preparing the forecast cash
flows. This included management's assessment of the likely impact of climate change;
• agreeing forecast future performance included in the impairment assessments to
the budgets approved by the Board of Directors, based on the three-year forecasts with
a growth rate applied for the future periods;
• with the assistance of our auditor’s valuation expert, assessing the appropriateness
of the terminal growth and discount rates and assessing these against industry trends
and external market forecasts; and
• performing a sensitivity analysis over key assumptions to determine whether reasonably
possible changes would result in impairment of goodwill.
We also reviewed the financial statements for appropriate identification and disclosure
of key assumptions, including the impact of reasonably possible changes which would result
in an impairment.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
55Freightways Annual Report 2025
PwC
Our audit approach
Overview
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that
are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters, consideration
of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance about whether the financial statements
are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall Group materiality for the financial statements
as a whole as set out above. These, together with qualitative considerations, helped us to determine the scope of our audit, the nature, timing and extent of our audit
procedures, and to evaluate the effect of misstatements, both individually and in the aggregate, on the financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the
structure of the Group, the accounting processes and controls, and the industries in which the Group operates.
Overall group materiality: $5.6 million, which represents approximately 5% of profit before tax.
We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most
commonly measured by users and is a generally accepted benchmark.
The scope of our audit and the nature, timing and extent of audit procedures performed were determined by our risk assessment, the financial
significance of components and other qualitative factors (including history of misstatement through fraud or error).
We performed audit procedures over components considered financially significant in the context of the Group (full scope audit) or in the context of
individual primary statement account balances (audit of specific account balances). We performed other procedures including analytical review
procedures to address the risk of material misstatement in the residual components.
As reported above, we have two key audit matters, being:
• Revenue recognition
• Impairment assessment of goodwill and indefinite lived brand names
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
56Freightways Annual Report 2025
PwC
Other information
The Directors are responsible for the other information. The other information comprises the information included in the Annual Report, but does not include the financial
statements and our auditor’s report thereon. Other than the Climate Statement which we will receive at a later date, we have received all the other information expected
to be included in the Annual Report.
Our opinion on the financial statements does not cover the other information and we do not and will not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material misstatement therein, we are required to communicate the matter to the
Directors and use our professional judgement to determine the appropriate action to take.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of the financial statements in accordance with NZ IFRS and IFRS
Accounting Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters
related to going concern, and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no
realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance
with ISAs (NZ) and ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-1-1/
This description forms part of our auditor’s report.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
57Freightways Annual Report 2025
PwC
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been undertaken so that we might state those matters which we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
Company and the Company’s shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Richard Day.
For and on behalf of
PricewaterhouseCoopers Auckland
18 August 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
58Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
59Freightways Annual Report 2025
Income Statement
FOR THE YEAR ENDED 30 JUNE 2025
Group
Note
2025
$000
2024
$000
(restated)
*
Operating revenue2 & 31,289,5591 ,209,151
Transport and logistics expenses(536,741)(514,640)
Employee benefits expenses(373,374)(350,517)
Occupancy expenses(12,564)(9,489)
General and administration expenses(120,046)(105,398)
Depreciation and software amortisation4(90,189)(80,121)
Amortisation of intangibles4(12,306)(12,628)
Change in fair value of contingent consideration301,750-
Operating profit before interest and income tax146,089136,358
Net interest and finance costs4(34,056)(35,062)
Profit before income tax112,033101,296
Total income tax5(31,925)(30,370)
Profit for the year 80,10870,926
Profit for the year is attributable to:
Owners of the parent79,91970,759
Non-controlling interests189167
80,10870,926
Earnings per share25
Basic earnings per share (cents)4 4.7 39.8
Diluted earnings per share (cents)44.639.7
Note: All revenue and earnings are from
continuing operations.
*Refer to Note 1 for further details on the restated balances,
which relates to the reclassification of certain expense items.The above Income Statement should be read in conjunction with the accompanying notes.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
60Freightways Annual Report 2025
Statement of
Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2025
The Board of Directors of Freightways Group Limited
authorised these financial statements for issue on
the date below.
For and on behalf of the Board this 18th day of
August 2025.
Group
Note
2025
$000
2024
$000
Profit for the year80,10870,926
Other comprehensive income
Items that may be reclassified
subsequently to profit or loss:
Exchange differences on translation
of foreign operations
21(4,379)1,862
Cash flow hedges taken directly to equity, net of tax21(1,978)(1,380)
Total other comprehensive income after income tax(6,357)482
Total comprehensive income for the year 73,75171,408
Total comprehensive income for the year is attributable to:
Owners of the parent73,56271,241
Non-controlling interests189167
73,75171,408
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
Abigail Foote
DIRECTOR
Mark Cairns
CHAIR
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
61Freightways Annual Report 2025
Statement of
Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2025
Note
Contributed
equity
$000
Retained
earnings
$000
Cash flow
hedge
reserve
$000
Foreign
currency
translation
reserve
$000
Non-
controlling
interests
$000
Total
equity
$000Group
Balance at 1 July 2023298,075185,6182,404(9,883)388476,602
Profit for the year-70,759--16770,926
Exchange differences on
translation of foreign operations
---1,862-1,862
Cash flow hedges taken
directly to equity, net of tax
--(1,380)--(1,380)
Total Comprehensive Income-70,759(1,380)1,86216771,408
Dividend payments6-(65,901)--(151)(66,052)
Shares issued2110,311----10,311
Balance at 30 June 2024308,386190,4761,024(8,021)404492,269
Profit for the year-79,919--18980,108
Exchange differences on
translation of foreign operations
---(4,379)-(4,379)
Cash flow hedges taken
directly to equity, net of tax
--(1,978)--(1,978)
Total Comprehensive Income-79,919(1,978)(4,379)18973,751
Dividend payments6-(67,932)--(166)(68,098)
Shares issued212,045----2,045
Balance at 30 June 2025310,431202,463(954)(12,400)427499,967
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
62Freightways Annual Report 2025
Balance Sheet
AS AT 30 JUNE 2025
Group
Note
2025
$000
2024
$000
(restated)
*
Current assets
Cash and cash equivalents743,26135,653
Trade and other receivables8166,320160,610
Inventories912,3589,4 47
Contract assets3,0571,473
Derivative financial instruments10-491
Total current assets224,9962 0 7, 674
Non-current assets
Other non-current assets84,2126,194
Loans to related parties180180
Property, plant and equipment12160,722160,677
Right-of-use assets13325,199336,083
Intangible assets14651,466668,941
Investments in associates and joint venture1514,02413,335
Derivative financial instruments10-938
Total non-current assets1,155,8031,186,348
Total assets1,380,7991,394,022
Current liabilities
Trade and other payables17144,840145,981
Borrowings2021,538-
Lease liabilities135 7,75 851,400
Income tax payable22,41217, 2 9 7
Provisions183,5063,145
Contract liabilities1920,50021,080
Derivative financial instruments1071-
Total current liabilities270,625238,903
*Refer to Note 1 for further details on the restated balances,
which relates to the reclassification of contract liabilities.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
63Freightways Annual Report 2025
Balance Sheet continued
AS AT 30 JUNE 2025
Group
Note
2025
$000
2024
$000
(restated)
*
Non-current liabilities
Other payables17-1,920
Borrowings20236,94 3265,674
Deferred tax liability1643,58652,192
Provisions1812,47611,397
Lease liabilities13315,931331,667
Derivative financial instruments101,271-
Total non-current liabilities610,207662,850
Total liabilities880,832901,753
NET ASSETS499,967492,269
Equity
Contributed equity21310,431308,386
Retained earnings202,463190,476
Cash flow hedge reserve10(954)1,024
Foreign currency translation reserve(12,400)(8,021)
21499,540491,865
Non-controlling interests427404
TOTAL EQUI T Y499,967492,269
The above Balance Sheet should be read in conjunction with the accompanying notes.
*Refer to Note 1 for further details on the restated balances,
which relates to the reclassification of contract liabilities.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
64Freightways Annual Report 2025
Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2025
Group
Note
2025
$000
2024
$000
Inflows
(Outflows)
Inflows
(Outflows)
Cash flows from operating activities
Receipts from customers1,284,3591,201,479
Payments to suppliers and employees(1,041,248)(976,160)
Cash generated from operations243,111225,319
Interest received1,066879
Interest and other costs of finance paid(35,769)(35,941)
Income taxes paid(34,761)(33,594)
Net cash inflows from operating activities23173,647156,663
Cash flows from investing activities
Payments for property, plant and equipment(25,907)(28,919)
Payments for software and other intangibles(3,637)(2,518)
Proceeds from disposal of property, plant and equipment571589
Payments for businesses acquired (net of cash acquired) 30(4,813)(858)
Receipts from joint ventures and associates1,6001,150
Net cash outflows from investing activities(32,186)(30,556)
Cash flows from financing activities
Dividends paid(68,098)(57,181)
Net decrease in bank borrowings(5,092)(26,993)
Proceeds from issue of ordinary shares 400601
Principal elements of lease payments(57,698)(50,204)
Net cash outflows from financing activities(130,488)(133,777)
Net increase (decrease) in cash and cash equivalents10,973( 7, 670)
Cash and cash equivalents at beginning of year35,65344,485
Exchange rate adjustments (3,365)(1,162)
Cash and cash equivalents at end of year743,26135,653
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
65Freightways Annual Report 2025
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2025
Note 1. Material Accounting
Policy Information
(A) REPORTING ENTITY AND STATUTORY BASE
Freightways Group Limited is a company registered
under the Companies Act 1993 and is an FMC reporting
entity under Part 7 of the Financial Markets Conduct Act
2013. The financial statements of the Group have been
prepared in accordance with the requirements of Part
7 of the Financial Markets Conduct Act 2013 and the
NZX Main Board Listing Rules. In accordance with the
Financial Markets Conduct Act 2013, Group financial
statements are prepared and presented for Freightways
Group Limited and its subsidiaries. Accordingly, separate
financial statements for Freightways Group Limited
are not required to be prepared and presented.
The financial statements are stated in New Zealand
dollars rounded to the nearest thousand, unless
otherwise indicated.
Basis of preparation
The financial statements of the Group have been
prepared in accordance with Generally Accepted
Accounting Practice in New Zealand (NZ GAAP).
The Group is a for-profit entity for the purposes of
complying with NZ GAAP. The financial statements
comply with New Zealand equivalents to International
Financial Reporting Standards (NZ IFRS), other New
Zealand accounting standards and authoritative notices
that are applicable to entities that apply NZ IFRS. The
financial statements comply with International Financial
Reporting Standards Accounting Standards.
The financial statements have been prepared on a
historical cost basis, except for derivative financial
instruments and acquisition earn-out payables, which
have been measured at fair value.
Going concern assumption
The Group has negative working capital of $45.6
million. This is due partly to contract liabilities for
deferred revenue (prepaid ticket liability) of $12
million and borrowings repayable within 12-months of
$21.5 million which are classified as a current liability
(2024: negative working capital of $31.2 million due to
contract liabilities). The Group has undrawn bank loan
facilities as at 30 June 2025 totalling NZD130.9 million
to meet obligations and continue for the foreseeable
future, being at least 12 months from the date of
approval of the financial statements. Accordingly,
there are no material uncertainties related to events
or conditions that may cast significant doubt upon
the Group’s ability to continue as a going concern
for the purpose of these financial statements.
Reclassification of comparatives
The Group previously presented certain employee
benefits expenses as transport & logistics expenses
in the Income Statement. The Group now considers
it is more appropriate to include the expenses in
employee benefits expenses. The comparatives for
the year ended 30 June 2024 have been restated
by reclassifying $11.8 million from transport &
logistics expenses to employee benefits expenses.
The Group previously presented certain transport &
logistics expenses and occupancy expenses as general
& administrative expenses in the Income Statement.
The Group now considers it is more appropriate to
include the expenses in transport & logistics expenses
and occupancy expenses. The comparatives for the
year ended 30 June 2024 have been restated by
reclassifying $5.9 million from general & administrative
expenses to transport & logistics expenses ($2.6
million) and occupancy expenses ($3.3 million).
The Group previously included revenue received in
advance in Trade and other payables. It has now been
determined that revenue received in advance should
be classified as Contract liabilities. The comparative
balance sheet as at 30 June 2024 has been restated
by moving $6.6m of revenue received in advance from
Trade and other payables to Contract liabilities.
Critical accounting estimates and judgements
The preparation of financial statements in conformity
with NZ IFRS requires the use of certain critical
accounting estimates, where necessary, and may
require management to exercise judgement in
the process of applying the Group’s accounting
policies. Specific areas of critical accounting
estimates and assumptions used are as follows:
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
66Freightways Annual Report 2025
(i) Carrying value of indefinite life intangible assets
Impairment assessments are performed by
management, annually or where there is an indicator
of impairment, to assess the carrying value of
indefinite life intangible assets, including goodwill
and brand names. The recoverable amounts of cash-
generating units have been determined based on
the greater of value-in-use and fair value less cost of
disposal calculations. These calculations require the
use of estimates. Refer to Note 14.
(ii) Customer relationships
The estimation of the useful lives of customer
relationships has been based on historical
experience. The useful lives are reviewed at least
once per year and adjustments to useful lives are
made when considered necessary. Refer Note 14.
(iii) Acquisition earn-out amounts payable
The valuation of the Group’s acquisition earn-out
amounts payable are based on the post-acquisition
performance of the acquired businesses. These
fair value measurements require, among other
things, significant estimation of post-acquisition
performance of the acquired business and
judgement on time value of money. Acquisition
earn-out amounts payable shall be remeasured at
their fair value resulting from events or factors that
emerge after the acquisition date, with any resulting
gain or loss recognised in the income statement.
Judgement is applied to determine key assumptions
(such as growth in sales and margins) adopted in
the estimate of post-acquisition performance of the
acquired business. Judgement is also applied to
determine the appropriate discount rate applied to
calculate the present value of the amount payable.
Changes to key assumptions may impact the future
payable amount. Refer to Note 30.
(iv) Purchase price allocation for acquisitions
During the year, the Group acquired businesses
as described in Note 30. All identifiable assets
and liabilities, including intangible assets, were
measured at fair value at acquisition date. In
deriving a fair value for identifiable intangibles, the
Group used a variety of valuations methods and
key assumptions to reflect what a typical market
participant would apply if they were to buy or sell
each asset on an individual basis.
(B) BASIS OF CONSOLIDATION
(i) Subsidiaries
Subsidiaries are entities that are controlled either
directly by the Company or where the substance
of the relationship between the Company and the
entity indicates the Company controls it. The results
of businesses acquired or disposed of during the
year are included in the income statement from the
date of acquisition or up to the date of disposal.
The financial statements include the Company and
its subsidiaries accounted for using the acquisition
method. The cost of an acquisition is measured
as the fair value of the assets acquired, equity
instruments issued and liabilities incurred or
assumed at the date of acquisition. Costs directly
attributable to the acquisition are expensed to the
income statement. Identifiable assets acquired,
liabilities and contingent liabilities assumed in a
business combination are measured initially at their
fair values at acquisition date. The Group recognises
any non-controlling interest in an acquired entity on
an acquisition-by-acquisition basis either at fair value
or as the non-controlling interest’s proportionate
share of the acquired entity’s net identifiable assets.
The excess of the consideration transferred over the
fair value of the Group’s share of the identifiable net
assets acquired is recorded as goodwill.
All material transactions between subsidiaries
or between the Company and subsidiaries are
eliminated on consolidation. Accounting policies of
subsidiaries are consistent with those adopted by
the Group.
Any contingent consideration to be transferred
by the Group is recognised at fair value at the
acquisition date. Subsequent changes to the
fair value of the contingent consideration that is
deemed to be an asset or liability is recognised in
accordance with NZ IFRS 9 in the income statement.
Contingent consideration that is classified as equity
is not remeasured, and its subsequent settlement is
accounted for within equity.
(ii) Joint arrangements and joint ventures
The Group applies NZ IFRS 11 to all joint
arrangements. Under NZ IFRS 11 investments in
joint arrangements are classified as either joint
operations or joint ventures depending on the
contractual rights and obligations of each investor.
The Group has assessed the nature of its joint
arrangements and determined them to be joint
ventures. Joint ventures are accounted for using the
equity method.
Under the equity method of accounting, interests
in joint ventures are initially recognised at cost
and adjusted thereafter to recognise the Group’s
share of the post-acquisition profits or losses and
movements in other comprehensive income. When
the Group’s share of losses in joint venture equals
or exceeds its interests in the joint venture (which
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
67Freightways Annual Report 2025
includes any long-term interests that, in substance,
form part of the Group’s net investment in the joint
venture), the Group does not recognise further
losses, unless it has incurred obligations or made
payments on behalf of the joint venture.
Unrealised gains on transactions between the Group
and its joint ventures are eliminated to the extent of
the Group’s interest in the joint ventures. Unrealised
losses are also eliminated unless the transaction
provides evidence of an impairment of the asset
transferred. Accounting policies of joint ventures
are changed where necessary to ensure consistency
with the policies adopted by the Group.
(C) FOREIGN CURRENCY TRANSLATION
(i) Functional and presentation currency
Items included in the financial statements of
each entity in the Group are measured using the
currency that best reflects the primary economic
environment in which the entity operates (the
“functional currency”). The financial statements
are presented in New Zealand Dollars, which is the
Company’s functional currency and the Group’s
presentation currency.
(ii) Transactions and balances
Transactions in foreign currencies are translated
into the functional currency using the foreign
exchange rate ruling at the date of the transaction.
Foreign exchange gains and losses resulting from
the settlement of such transactions and from the
translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign
currencies are recognised in the income statement,
except when deferred in equity as qualifying cash
flow hedges.
(iii) Foreign operations
The results and balance sheets of foreign operations
(none of which has the currency of a hyperinflationary
economy) that have a functional currency different
from the presentation currency are translated into
the presentation currency as follows:
- assets and liabilities for the balance sheet
presented are translated at the closing rate at the
date of the balance sheet;
- income and expenses for the income statement
are translated at average exchange rates (unless
this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the
transaction dates, in which case income and
expenses are translated at the dates of the
transactions); and
- all resulting exchange differences are recognised
as a separate component of equity.
Goodwill and fair value adjustments arising on the
acquisition of a foreign operation are treated as
assets and liabilities of the foreign operation and
translated at the closing rate.
(D) IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets that have an indefinite life are not subject to
amortisation and are tested annually for impairment.
Assets that are subject to amortisation or depreciation
are reviewed for impairment whenever events or
changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss
is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset’s fair
value, less costs of disposal, and value-in-use. For the
purposes of assessing impairment, assets are grouped
at the lowest levels for which there are separately
identifiable cash flows (cash-generating units).
(E) FINANCIAL ASSETS
(i) Classification
The Group classifies its financial assets in the
following measurement categories:
• those to be measured subsequently at fair value
either through other comprehensive income or
through the income statement; and
• those to be measured at amortised cost.
The classification depends on the Group’s business
model for managing the financial assets and the
contractual terms of the cash flows. For assets
measured at fair value, gains and losses will either
be recorded in the income statement or other
comprehensive income.
(ii) Recognition and derecognition
Regular purchases and sales of financial assets are
recognised on the trade date, i.e. the date on which
the Group commits to purchase or sell the asset.
Financial assets are derecognised when the rights
to receive cash flows from the investments have
expired or the Group has transferred substantially
all the risks and rewards of ownership.
(iii) Measurement
At initial recognition, the Group measures a
financial asset at its fair value plus, in the case of a
financial asset not at fair value through the income
statement, transaction costs that are directly
attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair
value through the income statement are expensed in
the income statement.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
68Freightways Annual Report 2025
(F) FAIR VALUE ESTIMATION
The fair value of financial assets and financial liabilities
is estimated for recognition and measurement or
for disclosure purposes. The fair value of financial
instruments that are not traded in an active market (for
example, over the counter derivatives) are determined
using accepted treasury valuation techniques, such
as estimated discounted cash flows, by an external
treasury management system provider. The carrying
value of trade receivables (less provision for doubtful
receivables) and payables approximate their fair values.
(G) GOODS AND SERVICES TAX (GST)
The income statement and statement of cash flows
have been prepared so that all components are
stated exclusive of GST. All items in the balance sheet
are stated net of GST, with the exception of trade
receivables and payables, which include GST invoiced.
(H) CHANGES IN ACCOUNTING POLICIES
The Group has applied the following standards
and amendments for the first time in the
preparation of these financial statements.
• FRS 44 amendment – Disclosure of fees for audit
firms’ services.
• IFRS Interpretations Committee agenda decision
July 2024 - Disclosure of Revenues and Expenses for
Reportable Segments (IFRS 8).
The amendments listed above did not have any impact
on the amounts recognised in the financial statements.
The accounting policies and methods of computation
are consistent with those used in the year ended
30 June 2024.
Certain comparative balances have been reclassified as
detailed in the “Basis of preparation” section in Note 1(a).
(i) New accounting standards issued but not
yet effective
Certain new accounting standards, amendments
to accounting standards and interpretations have
been published that are not mandatory for the 30
June 2025 reporting period and have not been early
adopted by the Group. Other than NZ IFRS 18, these
standards, amendments or interpretations are not
expected to have a material impact on the Group.
NZ IFRS 18 Presentation and Disclosure in Financial
Statements was issued in April 2024 as replacement
for NZ IAS 1 Presentation of Financial Statements
and becomes effective for reporting periods
beginning on or after 1 January 2027. NZ IFRS
18 introduces new requirements on presentation
within the income statement, including specified
totals and subtotals. It also requires disclosure of
management-defined performance measures and
includes new requirements for the aggregation and
disaggregation of financial information based on the
identified ‘roles’ of the primary financial statements
and the notes. The Group will disclose more
information in the future when a full assessment of
the impact of the standard has been completed.
The Group intends to adopt the new and amended
standard and interpretation, if applicable, when
they become effective.
Note 2. Segment Reporting
A segment is a component of the Group that can be
distinguished from other components of the Group by
the products or services it sells, the primary market
it operates in and the risks and returns applicable to
it. Operating segments are reported upon in a manner
consistent with the internal reporting used by the
Chief Executive Officer, as the chief operating decision
maker (CODM), and the Board for allocating resources,
assessing performance and strategic decision making.
The Group is organised into the following reportable
operating segments:
EXPRESS PACKAGE & BUSINESS MAIL
Comprises network (hub & spoke) courier,
express freight, refrigerated transport, point-
to-point courier and postal services.
INFORMATION MANAGEMENT
Comprises secure paper-based and electronic business
information management services. This segment also
comprises secure handling, treatment and disposal of
clinical waste, waste renewal and related services.
CORPORATE AND OTHER
Comprises corporate, financing and
property management services.
The Group has no individual customer that represents
more than 10% of external sales revenue.
Information regarding the operations of each reportable
operating segment is included below. Segment profit
represents the profit earned by each segment and is
extracted from the income statements of business units
within the Group. Operating profit (loss) before interest,
income tax, depreciation and software amortisation
and amortisation of intangibles, Operating profit
(loss) before interest, income tax and amortisation of
intangibles and Profit (loss) before interest and income
tax are non-GAAP measures and used by the CODM and
the Board to assess the performance of the operating
segments. These measures should not be viewed in
isolation, nor considered as substitutes for measures
reported in accordance with NZ IFRS. These non-
GAAP financial measures may not be comparable to
similarly titled amounts reported by other companies.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
69Freightways Annual Report 2025
AS AT AND FOR THE YEAR ENDED 30 JUNE 2025
Express Package
& Business Mail
$000
Information
Management
$000
Corporate
$000
Inter-
Segment
Elimination
$000
Consolidated
Operations
$000
Income statement
Sales to external customers1,056,458233,101--1,289,559
Inter-segment sales4,550 5025,141 (10,193) -
Total revenue1,061,008233,6035,141(10,193) 1,289,559
Operating profit (loss) before
interest, income tax, depreciation
and software amortisation and
amortisation of intangibles
204,71458,536(14,666)-248,584
Depreciation and
software amortisation
(61,381) (27,241) (1,567) -(90,189)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles
143,33331,295(16,233)-158,395
Amortisation of intangibles(10,655)(1,651)--(12,306)
Profit (loss) before interest
and income tax
132,67829,64 4(16,233)-146,089
Net interest and finance costs(12,296)(5,016)(16,74 4)-(34,056)
Profit (loss) before income tax120,38224,628(32,977)-112,033
Income tax(33,650)( 7, 3 1 5 )9,040-(31,925)
Profit (loss) for the year
attributable to the shareholders
86,73217, 3 1 3(23,937) -80,108
Balance sheet
Segment assets9 47, 5 39363,30069,960-1,380,799
Segment liabilities4 49,652172,777258,403-880,832
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
70Freightways Annual Report 2025
AS AT AND FOR THE YEAR ENDED 30 JUNE 2024
Express Package
& Business Mail
$000
Information
Management
$000
Corporate
$000
Inter-
Segment
Elimination
$000
Consolidated
Operations
$000
Income statement
Sales to external customers995,080214,071--1,209,151
Inter-segment sales4,016 3165,94 3 (10,275) -
Total revenue999,096214,3875,943(10,275) 1 ,209,151
Operating profit (loss) before
interest, income tax, depreciation
and software amortisation and
amortisation of intangibles
181,8615 7, 51 4(10,268)-229,107
Depreciation and
software amortisation
(53,437) (25,167) (1,517) -(80,121)
Operating profit (loss) before
interest, income tax and
amortisation of intangibles
128,42432,347(11,785)-14 8,986
Amortisation of intangibles(10,486)(2,142)--(12,628)
Profit (loss) before interest
and income tax
1 17,9 3 830,205(11,785)-136,358
Net interest and finance costs(11,680)(5,161)(18,221)-(35,062)
Profit (loss) before income tax106,25825,044(30,006)-101,296
Income tax(29,685)( 7, 32 7 )6,642-(30,370)
Profit (loss) for the year
attributable to the shareholders
76,57317,717(23,364) -70,926
Balance sheetBalance sheet
Segment assets916,854363,388113,780-1,394,022
Segment liabilities4 41,797181,396278,560-901,753
Segment assets and liabilities are disclosed
net of inter-company balances.
For the year ended 30 June 2025, external revenue from
customers in the Group’s New Zealand and Australian
operations was $822.4 million and $467.2 million,
respectively (2024: $782.9 million and $426.3 million,
respectively). As at 30 June 2025, non-current assets
in respect of the New Zealand and Australian operations
(excluding deferred tax assets and financial assets)
were $670.9 million and $485.0 million, respectively
(2024: $809.8 million and $376.5 million, respectively).
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
71Freightways Annual Report 2025
Note 3. Revenue from Contracts
with Customers
REVENUE RECOGNITION
The majority of contracts the Group entered into
with its customers contain multiple performance
obligations. The transaction price is allocated to each
performance obligation based on the stand-alone
selling prices. As the stand-alone selling prices of
all goods and services provided are observable and
there is no implicit discount offered, transaction prices
allocated to individual performance obligations usually
match with respective stand-alone selling prices.
(i) Express package & business mail – express
package, refrigerated transport & storage and
postal services
The Group operates network (hub & spoke) courier,
express freight, refrigerated transport and storage,
point-to-point courier and postal services. Revenue
from these services is recognised over the time of
delivery, being from the time of acceptance of the
goods to delivery to the final destination. Revenue
from sale of postal products is recognised at the
point the sale occurs. Income invoiced and received
in advance of a service being provided is recorded
in the balance sheet as ‘Contract Liabilities’. This
income is brought to account in the year in which
the service is provided. Revenue from refrigerated
storage is recognised over time in the reporting
period in which the service is provided.
(ii) Information management – storage & handling and
destruction activities
The Group provides archive management services
for documents and computer media, including
storage, retrieval and destruction services. The
Group also provides secure handling, treatment
and disposal of clinical waste, waste renewal and
related services. Revenue from these services is
recognised over time in the reporting period in
which the service is provided. Revenue from sale
of archive boxes, computer media and products
generated from destruction activities is recognised
when control of the products has transferred, being
when the products are delivered to the customer.
(iii) Information management – digital services
The Group provides digital information management
services, including imaging and document
capture (scanning), data extraction, customised
digital workflow solutions and application (app)
development, under fixed-price and variable-price
contracts. Revenue from providing these digital
information management services is recognised in
the period in which the services are rendered. For
fixed-price contracts, revenue is recognised based
on the actual service provided to the end of the
reporting period as a proportion of the total service
to be provided, because the service does not create
an asset with an alternative use to the Group and
the Group has an enforceable right to payment for
performance completed. This revenue is determined
based on the efforts expended relative to the total
expected effort.
Estimates of revenues, costs or extent of progress
towards completion are revised if circumstances
change. Any resulting increases or decreases
in estimated revenues or costs are reflected in
the income statement in the period in which the
circumstances that give rise to the revision become
known by management.
In the case of fixed-price contracts, the customer
pays the fixed amount based on a payment
schedule. If the services rendered by the Group
exceed the payment, a contract asset is recognised.
If the payments exceed the services rendered, a
contract liability is recognised.
If the contract includes an hourly fee, revenue is
recognised in the amount to which the Group has a
right to invoice.
(iv) Financing components
The Group does not expect to have any contracts
where the period between the transfer of the
promised goods or services to the customer and
payment by the customer exceeds one year. As a
consequence, the Group does not adjust any of the
transaction prices for the time value of money.
(v) Interest income
Interest income is recognised on a time-
proportionate basis using the effective interest
method, which takes into account the effective yield
on the relevant financial asset.
(vi) Dividend income
Dividend income from investments is recognised
when the shareholder’s right to receive payment is
established.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
72Freightways Annual Report 2025
The Group derives revenue from the transfer of
goods and services over time and at a point in
time in the following major product lines:
Express
Package and
Refrigerated
Transport &
Storage
$000
Postal
$000
Storage &
Handling
$000
Destruction
Activities
$000
Other
including
Digital
Services
$000
Total
$000
2025
Revenue from external customers994,87461,58470,013113,37249,7161,289,559
Timing of revenue recognition:
At a point in time-3,212-31,6457, 0 5 541,912
Over time994 ,87458,37270,01381,72742,6611,247,647
994,87461,58470,013113,37249,7161,289,559
2024
Revenue from external customers938,87156,20967, 51 599,12547, 4 3 11 ,209,151
Timing of revenue recognition:
At a point in time-3,082-28,8427,75 539,679
Over time938,87153,12767, 51 570,28339,6761,169,472
938,87156,20967, 51 599,12547, 4 3 11 ,209,151
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
73Freightways Annual Report 2025
Note 4. Income and Expenses
Profit before income tax includes the
following specific income and expenses:
Group
Note
2025
$000
2024
$000
Interest and finance costs:
Interest income1,066878
Interest expense on bank borrowings(15,809)(17, 5 6 2 )
Interest expense on leases13(17, 6 4 6)(17, 359)
Other interest expense(1,667)(1,019)
Net interest and finance costs(34,056)(35,062)
Operating expenses:
Net gain on disposal of property, plant and equipment483469
Depreciation of property, plant and equipment1224,04721,399
Depreciation of right-of-use assets1361,83754,357
Amortisation of intangible assets1412,30612,628
Amortisation of software 144,3054,365
Auditor’s fees:
Audit of annual financial statements and review of interim financial statements:
PwC New Zealand457496
PwC Australia366341
Subtotal823837
Other assurance services and other agreed-upon procedure engagements:
Limited assurance for greenhouse gas emissions disclosures – 2025152-
Limited assurance for greenhouse gas emissions disclosures – 2024 (completed in FY25)62-
Subtotal214-
Other services:
Greenhouse gas emissions pre-conditions assessment-48
Subtotal-48
Total1,037885
Subsequent to the balance sheet date, PwC New Zealand has been engaged to provide services in relation
to long-term incentive (LTI) market practice, with fees estimated at NZ$7,500–10,000.
Costs of offering credit:
Impairment loss on trade receivables853522
Other:
Directors’ fees793762
Donations205172
Net foreign exchange (gain) loss(288)169
Change in fair value of contingent consideration1,750-
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
74Freightways Annual Report 2025
Note 5. Income Tax Expense
The income tax expense for the year is the tax payable on the
current year’s taxable income based on the income tax rate for each
jurisdiction adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences between the tax bases of assets
and liabilities and their carrying amounts in the financial statements.
Deferred tax assets and liabilities are recognised for temporary
differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates
which are enacted or substantively enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts of
deductible and taxable temporary differences to measure the
deferred tax asset or liability. An exception is made for certain
temporary differences arising from the initial recognition of an
asset or a liability. No deferred tax asset or liability is recognised
in relation to these temporary differences if they arose as a result
of a transaction, other than a business combination, that at the
time of the transaction did not affect either accounting profit or
taxable income. No deferred tax liability is recognised if it arises
from initial recognition of goodwill from a business combination.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future
taxable amounts will be available to utilise those temporary
differences and losses.
Current and deferred tax balances attributable to amounts that
have been recognised in other comprehensive income or directly
in equity, are also taken to other comprehensive income or directly
to equity, respectively.
Deferred income tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets against
current tax liabilities and when the deferred income tax assets
and liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities
where there is an intention to settle the balances on a net basis.
Group
2025
$000
2024
$000
Current tax:
Current tax on net profit for the year39,50234,420
Deferred tax (Note 16):
Origination and reversal of temporary differences( 7, 5 7 7 ) (5,583)
New Zealand tax legislation change in building depreciation-1,533
Total deferred tax( 7, 5 7 7 ) (4,050)
Income tax expense31,92530,370
Income tax applicable to the Group’s net profit before tax differs from the theoretical amount that would
arise using the weighted average tax rate applicable to the profits of the consolidated entities, as follows:
Group
2025
$000
2024
$000
Profit before income tax112,033101,296
Income tax calculated at domestic tax rates applicable
to the accounting profits in the respective countries
32,061 29,007
Tax-effect of amounts which are treated
differently when calculating taxable income:
- Non-assessable income (1,231)(711)
- Non-deductible expenses993684
- Reversal of deferred tax on building depreciation-1,533
- Other102(143)
Income tax expense31,92530,370
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
75Freightways Annual Report 2025
The Group has no tax losses (2024: Nil).
There are no unrecognised temporary differences
(2024: Nil).
The tax (charge)/credit relating to components of other
comprehensive income is as follows:
2025
Before tax
$000
Tax (charge) / credit
$000
After tax
$000
Exchange difference on translation of foreign operations(4,723)344(4,379)
Cash flow hedges taken directly to equity (2,775)797(1,978)
Other comprehensive income( 7, 49 8)1,141(6,357)
Current tax344
Deferred tax 797
1,141
2024
Before tax
$000
Tax (charge) / credit
$000
After tax
$000
Exchange difference on translation of foreign operations1,949(87)1,862
Cash flow hedges taken directly to equity (1,909)529(1,380)
Other comprehensive income40442482
Current tax(87)
Deferred tax 529
442
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
76Freightways Annual Report 2025
SHAREHOLDER TAX CREDITS
Group
Imputation credits account
2025
$000
2024
$000
Imputation credits available for use in subsequent reporting periods54,62255,843
Group
Franking credits account
2025
$000
2024
$000
Franking credits available for use in subsequent reporting periods69,53982,886
The above amounts represent the balance of the imputation and franking credits as at the end of the reporting period,
adjusted for:
(a) Credits that will arise from the payment of the amount of the provision for income tax;
(b) Debits that will arise from the payment of dividends recognised as a liability at the reporting date; and
(c) Credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
Note 6. Dividends Paid on
Ordinary Shares
Group
2025
$000
2024
$000
Recognised amounts
Fully imputed dividends declared and paid during the year:
Final dividend paid 2024 at 19 cents per share (2023: 19 cents)33,96233,712
Interim dividend for 2025 at 19 cents per share (2024: 18 cents)33,97032,189
67,9 3265,901
Unrecognised amounts
Final dividend for 2025 at 21 cents per share (2024: 19 cents)37, 5 4 633,955
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
77Freightways Annual Report 2025
Note 7. Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances
and cash deposits. Bank overdrafts that are repayable
on demand and form an integral part of the Group’s
cash management are included as a component of
cash and cash equivalents for the purpose of the
statement of cash flows. Bank overdrafts are shown
within borrowings in the current liabilities on the
balance sheet to the extent they exceed the legal right
of off-set against cash included in current assets.
Note 8. Trade Receivables and Other Non-Current Assets
Trade and other receivables are recognised at their fair value and subsequently measured
at amortised cost using the effective interest rate, less provision for impairment.
Group
2025
$000
2024
$000
Cash at bank43,153 35,544
Cash deposits108109
Cash and cash equivalents
in statement of cash flows
43,26135,653
Group
2025
$000
2024
$000
Current:
Trade receivables140,229144,631
Provision for doubtful receivables(3,438)(3,480)
136,791141,151
Accrued revenue12,3355,980
Other debtors and prepayments16,81013,003
Share plan loans receivable from employee384476
166,320160,610
Non-current:
Share plan loans receivable from employees284383
Other non-current assets3,9285,811
4,2126,194
Trade receivables are non-interest bearing and are generally on 7-30 day terms.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
78Freightways Annual Report 2025
Recoverability of trade and other receivables is
reviewed on an ongoing basis. Amounts that are
known to be uncollectible are written-off when
identified. The Group applies a simplified approach
in calculating expected credit losses, which uses
a lifetime expected loss allowance for all trade
receivables. To measure the expected credit losses,
trade receivables have been grouped based on
shared credit risk characteristics and the days past
due. For other receivables, an allowance for doubtful
receivables is raised when there is objective evidence
that the Group will not be able to collect all amounts
due according to the original terms of the receivable.
The movements in the provision for doubtful
receivables for the Group were as follows:
Group
2025
$000
2024
$000
Opening balance3,4803,219
Provision for doubtful
receivables
317449
Receivables written off during
the year as uncollectible
(199)(196)
Unused amounts reversed(139)-
Exchange rate movement(21)8
Closing balance (Note 28.1(b))3,4383,480
Note 9. Inventories
Inventories are stated at the lower of cost, determined
on a first-in-first-out basis, and net realisable value. Full
provision is made for obsolescence, where applicable.
Net realisable value is the estimated selling price in the
ordinary course of business, less the estimated costs
of completion and the estimated costs necessary to
make the sale. The cost of inventories recognised as
an expense and included in ‘general and administration
expenses’ amounted to $6.3 million (2024: $7.0 million).
Group
2025
$000
2024
$000
Finished goods7,9 5 05,076
Ticket stocks, uniforms
and consumables
4,4084,371
12,3589,4 47
Note 10. Derivative
Financial Instruments
Derivative financial instruments, such as interest rate
caps and collar contracts and interest rate swaps,
are entered into from time to time to manage interest
rate exposure on borrowings. Forward exchange
contracts are also entered into from time to time
to manage foreign exchange exposures. Derivative
financial instruments are initially recognised at fair
value on the date a derivative contract is entered into
and are subsequently remeasured to their fair value
at the reporting date. The method of recognising
the resultant gain or loss depends on whether the
derivative financial instrument is designated as a
hedging instrument, and if so, the nature of the item
being hedged. The Group designates derivative
financial instruments as either fair value hedges
(hedges of the fair value of recognised assets or
liabilities or a firm commitment) or cash flow hedges
(hedges of highly probable forecast transactions).
At the inception of the transaction, the Group
documents the relationship between the hedging
instrument and the hedged item, as well as its risk
management objective and strategy for undertaking
the hedge transaction. The Group also documents its
assessment, both at hedge inception and on an ongoing
basis, of whether the derivative financial instruments
that are used in hedging transactions have been
and will continue to be highly effective in offsetting
changes in fair values or cash flows of hedged items.
(i) Cash flow hedges
The effective portion of changes in the fair value of
derivative financial instruments that are designated
and qualify as cash flow hedges is recognised in
equity in the cash flow hedge reserve. The gain or
loss relating to any ineffective portion is recognised
immediately in the income statement.
Amounts taken to equity are transferred to the
income statement when the hedged transaction
affects profit or loss, such as when hedged income
or expenses are recognised or when a forecast sale
or purchase occurs. When the hedged item is the
cost of a non-financial asset or liability, the amounts
taken to equity are transferred to the initial carrying
amount of the non-financial asset or liability.
If the forecast transaction is no longer expected to
occur, amounts previously recognised in equity are
immediately transferred to the income statement.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
79Freightways Annual Report 2025
If the hedging instrument expires or is sold,
terminated or exercised without replacement or
rollover, or if its designation as a hedge is revoked,
amounts previously recognised in equity remain in
equity until the forecast transaction occurs.
If the related transaction is not expected to
occur, the amount is taken immediately to the
income statement.
(ii) Derivatives that do not qualify for hedge accounting
Changes in the fair value of derivative financial
instruments that do not qualify for hedge
accounting or where hedge accounting
has not been adopted are recognised
immediately in the income statement.
Group
2025
$000
Asset (Liability)
2024
$000
Asset (Liability)
Current:
Interest rate swaps – cash flow hedge(19)491
Forward foreign exchange contracts – cash flow hedge(52)-
(71)491
Non-current:
Interest rate swaps – cash flow hedge(1,271)938
(1,271)938
The Group’s hedging reserves relate to the following hedging instruments:
Cash flow hedge reserve
Intrinsic value of
options
$000
Spot component
of currency
forwards
$000
Interest rate
swaps
$000
Total hedge
reserve
$000
Balance at 1 July 2023 -7351,6692,404
Change in fair value of hedging
instrument recognised in Other
Comprehensive Income (OCI)
-(1,019)(890)(1,909)
Less: Deferred tax-284245529
Balance at 30 June 2024--1,0241,024
Change in fair value of hedging
instrument recognised in OCI
-(52)(2,720)(2,772)
Less: Deferred tax-14780794
Balance at 30 June 2025-(38)(916)(954)
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
80Freightways Annual Report 2025
Effects of hedge accounting on the financial
position and performance are:
NZD AUD
2025
$000
2024
$000
2025
$000
2024
$000
Interest rate swaps:
Notional amount83,00065,00056,00030,000
Maturity date05/26 – 04/30 05/25 – 12/29 04/27 – 07/3004/27 – 09/28
Hedge ratio1:11:11:11:1
Change in fair value of outstanding hedging instrument(676)1,147(570)283
Change in value of hedge item used to
determine hedge effectiveness
676(1,147)570(283)
Weighted average strike rate for the year3.5%3.0%3.8%3.4%
Foreign currency options:
Notional amount7, 5 35---
Maturity date07/25 – 06/26---
Hedge ratio1:1---
Change in fair value of outstanding hedging instrument(83)---
Change in value of hedge item used to
determine hedge effectiveness
83---
Weighted average strike rate for the yearUSD0.58:NZD1---
Forward foreign exchange contracts:
Notional amount8,510---
Maturity date07/25 – 06/26---
Hedge ratio1:1---
Change in fair value of outstanding hedging instrument(135)---
Change in value of hedge item used to
determine hedge effectiveness
135---
Weighted average strike rate for the yearUSD0.60:NZD1---
There was no derivative movement recognised in the income statement during the year (2024: nil).
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
81Freightways Annual Report 2025
HEDGE EFFECTIVENESS
Hedge effectiveness is determined at the inception
of the hedge relationship, and through periodic
prospective effectiveness assessments to ensure
that an economic relationship exists between the
hedged item and the hedging instrument.
For hedges of foreign currency purchases, the Group
enters into hedge relationships where the critical terms
of the hedging instrument match exactly with the terms
of the hedged item. The Group therefore performs a
qualitative assessment of effectiveness. If changes in
circumstances affect the terms of the hedged item such
that the critical terms no longer match exactly with the
critical terms of the hedging instrument, the Group uses the
hypothetical derivative method to assess effectiveness.
In hedges of foreign currency purchases, ineffectiveness
may arise if the timing of the forecast transaction changes
from what was originally estimated, or if there are changes in
the credit risk of the Group or the derivative counterparty.
The Group enters into interest rate swaps that have similar
critical terms as the hedged item, such as reference rate, reset
dates, payment dates, maturities and notional amount. The
Group does not hedge 100% of its loans, therefore the hedged
item is identified as a proportion of the outstanding loans up to
the notional amount of the swaps. As all critical terms matched
during the year, the economic relationship was 100% effective.
Hedge ineffectiveness for interest rate swaps is
assessed using the same principles as for hedges of
foreign currency purchases. It may occur due to:
- The credit or debit value adjustment on the interest
rate swaps not being matched by the loan; and
- Differences in critical terms between the
interest rate swaps and loans.
Note 11. Investments in Subsidiaries
The Company’s investment in its only directly-owned subsidiary, Freightways Express Limited (FEL), comprises
shares at cost. Listed below are all the significant subsidiaries wholly-owned directly or indirectly by FEL. All
subsidiaries have a balance date of 30 June.
Name of entity Principal activities Country of Incorporation
Air Freight NZ Limited Express package linehaul New Zealand
Allied Express Transport Pty Limited Express package services Australia
Allied Overnight Express Pty Limited Express package services Australia
Big Chill Distribution Limited Temperature-controlled transport & facilities New Zealand
Castle Parcels Limited Express package services New Zealand
Fieldair Engineering Limited General & aviation engineering services New Zealand
Fieldair Holdings Limited Aviation-related services New Zealand
Freightways Finance Limited Group treasury management New Zealand
Freightways Information Services Limited IT infrastructure support services New Zealand
Freightways Properties Limited Property management New Zealand
Freightways Trustee Company Limited Trustee of Freightways Employee Share Plan New Zealand
Info Management Services Australia LP Australian treasury services Australia
Info Management Services Pty Limited Australian treasury services Australia
LitSupport Pty Limited Information management Australia
Med-X Pty Limited Information management Australia
Messenger Services Limited Express package services New Zealand
New Zealand Couriers Limited Express package services New Zealand
New Zealand Document Exchange Limited Business mail New Zealand
NOW Couriers Limited Express package services New Zealand
Parceline Express Limited Express package linehaul New Zealand
Post Haste Limited Express package services New Zealand
Shred-X Pty Limited Information management Australia
The Information Management Group (NZ) Limited Information management New Zealand
The Information Management Group Pty Limited Information management Australia
There has been no change in investments in subsidiaries during the year.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
82Freightways Annual Report 2025
Note 12. Property, Plant
and Equipment
Property, plant and equipment are stated at historical
cost less accumulated depreciation and any
accumulated impairment losses. Historical cost includes
all expenditure directly attributable to the acquisition
or construction of the item, including interest.
Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated will flow to the Group and
the cost of the asset can be measured reliably. Such
cost includes the cost of replacing parts that are eligible
for capitalisation when the cost of replacing the parts
is incurred. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance costs
are recognised in the income statement as incurred.
Depreciation is calculated on a straight-line basis
on all tangible fixed assets, other than land and
leasehold improvements, so as to expense the
cost of the assets to their estimated residual
values over their estimated useful lives. Land is
not depreciated. Leasehold improvements are
depreciated over the shorter of the unexpired period
of the lease and the estimated useful life of the
improvements. Estimated useful lives are as follows:
Estimated useful life
Buildings- 25 to 50 years
Leasehold alterations- Shorter of the period of the
lease or estimated useful life
Motor vehicles- 5 to 10 years
Equipment- 3 to 20 years
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
Interest and finance costs incurred for the construction of a qualifying asset are capitalised during the period of time
that is required to complete and prepare the asset for its intended use. Other interest and finance costs are expensed.
Group
2025
Land
$000
Buildings
$000
Leasehold
Alterations
$000
Motor
Vehicles
$000
Equipment
$000
Total
$000
Opening net book value15,84316,016 15,04030,52783,251160,677
Additions-7751,9107,9 6115,261 25,907
Acquisitions through business
combinations (Note 30)
---88492
Depreciation expense-(1,294) (2,375) (5,676) (14,702) (24,047)
Disposals --(24)(567) (234) (825)
Transfers-5(63)-58-
Exchange rate movement(56) (21)(45) (223)(737)(1,082)
Closing net book value15,787 15,48114,44332,11082,901160,722
As at end of year
Cost15,787 45,772 31,72075,972187,056356,307
Accumulated depreciation-(30,291) (17, 2 7 7 ) (43,862) (104,155) (195,585)
Net book value15,78715,481 14,44332,11082,901160,722
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
83Freightways Annual Report 2025
Group
2024
Land
$000
Buildings
$000
Leasehold
Alterations
$000
Motor
Vehicles
$000
Equipment
$000
Total
$000
Opening net book value15,827 15,56015,42229,41878,973155,200
Additions-1,7121,719 5,85817, 1 1 0 26,399
Acquisitions through
business combinations
--26914821,175
Depreciation expense-(1,262) (2,235) (5,124) (12,778) (21,399)
Disposals--119(380)(805) (1,066)
Exchange rate movement16 613 64269368
Closing net book value15,843 16,01615,04030,52783,251160,677
As at end of year
Cost15,843 45,032 30,03471,132176,722338,763
Accumulated depreciation-(29,016) (14,994) (40,605) (93,471) (178,086)
Net book value15,84316,016 15,04030,52783,251160,677
The cost of equipment in respect of assets under construction for which depreciation has not commenced as at
30 June 2025 is $0.7 million (2024: $16.2 million).
The latest independent valuations of land and buildings (performed in June 2024) assess these assets to have a
total fair value of $107.5 million. The fair values have been derived using the direct capitalisation approach. The
valuation technique uses significant unobservable inputs, namely capitalisation rate and potential new market
income of land and buildings. Therefore, these are considered level 3 valuations, as defined in Note 28.1(d).
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
84Freightways Annual Report 2025
Note 13. Leases
This note provides information for leases where the
Group is a lessee.
The Group’s leases predominantly relate to property,
equipment and vehicles. Rental contracts are
typically made for fixed periods of 3 to 12 years
but may have extension options. Lease terms are
negotiated on an individual basis and contain a wide
range of different terms and conditions. The lease
agreements do not impose covenants other than
the leased assets may not be used as security for
borrowing purposes. The right-of-use (ROU) asset is
depreciated over the shorter of the asset’s useful life
and the expected lease term on a straight-line basis.
Lease liabilities have been measured at the present
value of the remaining lease payments, discounted
using a discount rate derived from the incremental
borrowing rate (IBR) when the interest rate implicit
in the lease was not readily available. Factors taken
into consideration when calculating the IBR for each
asset category included observable market rates,
economic conditions and lease tenure. The incremental
borrowing rates applied to lease liabilities range
between 1.77% to 7.82% (2024: 1.69% to 7.82%), with
a weighted average rate of 4.86% (2024: 4.94%).
Some property leases contain an extension option
exercisable by the Group. At the commencement of
a lease, the Group assesses whether it is reasonably
certain an extension option will be exercised. The
assessment is reviewed if a significant event or a
significant change in circumstances occurs which affects
this assessment and that is within the control of the
Group. The extension options are only exercisable by the
Group and not the lessor. Where it is reasonably certain
the extension will be exercised, that extension period
and related costs are recognised on the balance sheet.
The following tables show the movements and analysis in relation to the ROU assets and lease liabilities.
The balance sheet shows the following amounts relating to leases:
Group
Right-of-use assets:
2025
$000
2024
$000
Opening net book value336,083315,536
Lease additions, modifications and terminations52,34670,976
Additions through business combinations3503,535
Depreciation for the year(61,837)(54,357)
Exchange rate movement(1,74 3)393
Closing net book value325,199336,083
Cost600,599558,843
Accumulated depreciation(275,400)(222,760)
Closing net book value325,199336,083
Right-of-use assets:
Buildings287,887300,686
Equipment11,8187, 5 35
Motor vehicles25,4942 7, 8 6 2
325,199336,083
Group
Lease liabilities:
2025
$000
2024
$000
Opening lease liabilities383,067358,273
Lease additions, modifications and terminations50,07870,959
Additions through business combinations3503,535
Interest for the year17, 6 4 617, 359
Lease repayments(75,394)(67,7 1 5 )
Exchange rate movement(2,058)656
Closing lease liabilities373,689383,067
Analysis of lease liabilities:
Current5 7,75 851,400
Non-current315,931331,667
373,689383,067
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
85Freightways Annual Report 2025
Lease liabilities maturity analysis:
Group 2025
Minimum lease
payments
$000
Interest
$000
Present value
$000
Within one year72,85715,0995 7,75 8
One to five years206,90642,458164,448
Beyond five years174 , 45922,976151,483
Total454,22280,533373,689
Group 2024
Minimum lease
payments
$000
Interest
$000
Present value
$000
Within one year68,25416,85451,400
One to five years2 0 7, 0 5 546,615160,440
Beyond five years218,00546,778171,227
Total493,314110,247383,067
Lease related expenses included in the income statement:Group
2025
$000
2024
$000
Depreciation charge for right-of-use assets
Buildings48,68342,726
Motor vehicles3,8108,068
Equipment9,34 43,563
61,83754,357
Interest on leases17, 6 4 617, 359
Total cash outflow in relation to leases is $57.7 million (2024: $50.2 million).
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
86Freightways Annual Report 2025
Note 14. Intangible Assets
(i) Goodwill
Goodwill represents the excess of the consideration
transferred in an acquisition over the fair value of
the Group’s share of the net identifiable assets of
the acquired business at the date of acquisition.
Goodwill is not amortised but is tested for
impairment annually or whenever events or changes
in circumstances indicate that it might be impaired
and is carried at cost less accumulated impairment
losses. Goodwill is allocated to cash-generating
units for the purpose of impairment testing.
(ii) Brand names
Acquired brand names are recognised at cost, being
their fair value at the date of acquisition if acquired
in a business combination. Brand names with
indefinite useful lives are not subject to amortisation
but are tested for impairment annually or whenever
events or changes in circumstances indicate that
they might be impaired and are carried at cost
less amortisation and impairment losses. Brand
names with finite useful lives are amortised over
their expected useful lives. The useful lives and
amortisation methods are reviewed and adjusted, if
appropriate, at each balance sheet date.
Brand names are allocated to cash-generating units
for the purpose of impairment testing. The allocation
is made to those cash-generating units or groups of
cash-generating units that are expected to benefit
from the brand names.
(iii) Computer software
External software costs, together with payroll and
related costs for employees directly associated
with the development of software, are capitalised
if the development creates an intangible asset that
the Group controls and the intangible asset meets
the recognition criteria. Cloud-based software
costs that do not result in intangible assets are
expensed as incurred, unless the costs are paid
to the suppliers of the cloud-based software to
significantly customise the cloud-based software
for the Group, in which case the costs paid upfront
are recorded as prepayments for services and
amortised over the expected terms of the cloud
computing arrangements. Amortisation is charged
on a straight-line basis over the estimated useful
life of the software which ranges between 3 and
10 years. Software work in progress for which
amortisation has not commenced amount to $0.3m
(2024: nil). Software under development not yet
available for use is tested annually for impairment.
(iv) Customer relationships
• Contractual
An intangible asset is recorded at fair value
in respect of the amount of any contractual
termination fees payable by customers
of businesses acquired in respect of their
document holdings. As it is not known when
permanent retrieval fees may arise, this asset
is only amortised upon the actual retrieval fee
being charged to the respective customer.
• Other
Non-contractual customer relationships acquired
in a business combination are recognised at fair
value at the acquisition date. These customer
relationships have an estimated finite useful
life and are carried at cost less accumulated
amortisation. Amortisation is calculated using
the straight-line method over the expected
useful life of the customer relationship
which ranges between 10 and 20 years.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
87Freightways Annual Report 2025
Group
2025
Goodwill
$000
Brand names
$000
Software
$000
Customer
relationships
$000
Other
$000
Total
$000
Opening net book value411,0901 57, 4 3511,84483,4705,102668,941
Additions--3,459 -1783,637
Acquisition through business combinations567--234-801
Disposals / Transfers--(167)-(31)(198)
Amortisation expense-(77)(4,305) (11,408) (821) (16,611)
Exchange rate movement(3,573)(778)(17)(681)(55)(5,104)
Closing net book value408,084156,58010,81471,6154,373651,466
As at end of year
Cost408,110 156,86137, 51 2129,749 9,240 741, 472
Accumulated amortisation and impairment(26)(281)(26,698) (58,134) (4,867) (90,006)
Net book value408,084156,58010,81471,6154,373651,466
Group
2024
Goodwill
$000
Brand names
$000
Software
$000
Customer
relationships
$000
Other
$000
Total
$000
Opening net book value406,6501 57, 2 8 31 3,70594,1915,81067 7, 6 39
Additions--2,518 -352,553
Acquisition through business combinations3,468--893-4,361
Disposals / Transfers--(17)--(17)
Amortisation expense-(77)(4,365) (11,793) (758) (16,993)
Exchange rate movement9722293179151,398
Closing net book value411,0901 57, 4 3511,84483,4705,102668,941
As at end of year
Cost411,116 1 5 7, 6 3936,439130,699 11,099 74 6,992
Accumulated amortisation and impairment(26)(204)(24,595) (47, 2 2 9) (5,997) (78,051)
Net book value411,0901 57, 4 3511,84483,4705,102668,941
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
88Freightways Annual Report 2025
IMPAIRMENT TESTS FOR INDEFINITE
LIFE INTANGIBLE ASSETS
Goodwill and brand names are allocated to those
cash-generating units (CGU) or groups of CGU
that are expected to benefit from them. The
carrying amount of intangible assets allocated
by CGU or group of CGU is outlined below:
Goodwill Brand names
2025
$000
2024
$000
2025
$000
2024
$000
Allied Express98,899100,43629,08529,537
Big Chill85,18385,18314,48514,561
Messenger Services9,0169,0165,1005,100
New Zealand Couriers47,75 247,75 258,50058,500
New Zealand Document Exchange
and Dataprint
15,09215,0927, 3 1 87, 3 1 8
Post Haste, Castle Parcels and
NOW Couriers
30,64630,64618,39518,395
Total Express Package & Business Mail286,588288,125132,883133,411
The Information Management
Group (New Zealand)
17, 5 7 717, 5 7 74,4004,400
The Information Management
Group (Australia)
56,9735 7, 8 4 615,99516,244
Shred-X46,94647, 5 4 23,3023,380
Total Information Management121,496122,96523,69724,024
Total408,084411,090156,5801 57, 4 35
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
89Freightways Annual Report 2025
(i) Key assumptions used for value-in-use calculations
On an annual basis, the recoverable amount
of goodwill and brand names is determined
based on the greater of value-in-use and
fair value less costs of disposal calculations
specific to the CGU or group of CGUs associated
with both goodwill and brand names.
The value-in-use calculations use pre-tax cash flow
projections based on financial budgets prepared
by management and approved by the Board
for the year ended 30 June 2026 and financial
projections for the years ended 30 June 2027
and 2028. Cash flows beyond June 2028 have
been extrapolated using growth rates which align
with long-term inflation rates in New Zealand and
Australia. In addition, the sensitivity of the main
financial variables was tested and considered in
the final estimation. No adjustments have been
made to forecast cash flows for the unknown
impacts of future climate change, as further
disclosed in the note “Climate change” below.
Revenue growth rates and a consistent EBITDA
margin assuming costs increase in line with
revenue, reflecting both historical and expected
growth, have been applied to the value-in-use
calculation with the same scenarios and sensitivities
applied as described in Section (ii) Significant
estimate – sensitive to changes in assumptions
below. Pre-tax discount rates, reflecting the current
environment in financial markets and the countries
each CGU or group of CGUs operates in, have been
used. The CGU or group of CGUs specific growth
rates and pre-tax discount rates applied are:
20252024
Revenue Growth
Rate FY26-FY28
%
Pre-tax Discount
Rate
%
Revenue Growth
Rate FY25–FY27
%
Pre-tax Discount
Rate
%
Allied Express3.5 - 11.913.63.9 - 8.41 3.9
Big Chill6.0 - 10.913.45.9 - 14.913.7
Messenger Services10.3 - 18.214.20.6 - 6.014.9
New Zealand Couriers6.7 - 7.113.46.8 - 7.013.2
New Zealand Document
Exchange and Dataprint
4.9 - 8.413.01.8 - 10.014.7
Post Haste, Castle Parcels
and NOW Couriers
6.9 - 18.113.42.0 - 7.714.8
The Information Management
Group (New Zealand)
3.3 - 5.316.61.0 - 5.217. 1
The Information Management
Group (Australia)
(1.7) – 4.515.73.1 - 5.515.8
Shred-X7. 0 – 7. 415.76.7 - 10.815.7
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
90Freightways Annual Report 2025
Revenue growth rates of 2.5% for CGUs in New Zealand
and 3% for CGUs in Australia have been applied beyond
June 2028, including the terminal growth rate.
(ii) Significant estimate - Sensitivity to changes
in assumptions
With the exception of Big Chill and Shred-X, the value-
in-use assessment for all CGUs indicated significant
headroom and management believes that no reasonably
possible change in any of the above key assumptions
would cause the carrying values of goodwill and brand
names to exceed their respective recoverable amounts.
The financial performance of Big Chill for the year ended
30 June 2025 was impacted by the economic downturn
in New Zealand and the company’s exposure to higher
value food, indicating risk of a potential impairment.
The recoverable amount of Big Chill would equal its
carrying amount if any of the key assumptions were to
change as follows:
20252024
FromToFromTo
Achievement
of FY26-FY28
revenue
100%84%100%77%
Ter minal
growth rate
2.5%(0.4%)2%(2.2%)
Pre-tax
discount rate
13.4%16.4%13.7%18.2%
Shred-X financial performance for the year ended 30
June 2025 was impacted by over A$2 million in one-
off costs, including prior-year workers compensation
adjustments, restructuring costs, legal and advisory
fees and asset write-offs. Shred-X’s medical waste
operations underperformed due to delays in new
contracts, with a key Victoria healthcare tender
not delivering expected revenue and earnings.
E-Waste operations also underperformed driven
by market softness. Labour costs were higher
than expected to deal with work cover absences,
unplanned volume increases, as well as higher
corporate headcount to support future growth.
The recoverable amount of Shred-X would equal its
carrying amount if any of the key assumptions were to
change as follows:
20252024
FromToFromTo
Achievement
of FY26-FY28
revenue
100%87%100%75%
Ter minal
growth rate
3%0.1%3%(4%)
Pre-tax
discount rate
15.7%18.7%15.7%22.2%
CLIMATE CHANGE
Freightways recognises that climate change presents a
significant issue for the freight and logistics industry.
Most of Freightways’ measured emissions come from
the use and combustion of transport fuel, including
that of its contracted drivers. Financial impacts could
be experienced if there were changes to the scope
of fuel-related climate regulation and / or the cost
of compliance with any such emerging regulation.
Freightways is exploring ways to diversify its sources of
transport energy and reduce its reliance on fossil fuel.
The risk of disruption and/or damage due to weather
events linked to climate change could impact our
network and operations. Currently, the geographically
dispersed nature of Freightways’ operations and
network throughout New Zealand and Australia allows
the Group to adapt in weather-related disruption.
Freightways is a Climate Reporting Entity
under the Financial Markets Conduct Act 2013.
Freightways will publish its second set of Climate
Statements under the Aotearoa New Zealand
Climate Standards in September 2025.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
91Freightways Annual Report 2025
Note 15. Investments in
Associates and Joint Ventures
The Group has a 33.3% investment and voting
rights in Sweetspot Group Limited (GSS), a
company that provides freight brokerage service.
The principal place of business and country
of incorporation of GSS is New Zealand.
GSS is the only material associate of the Group as at 30
June 2025. GSS has share capital consisting solely of
ordinary shares, which are held directly by the Group.
GSS is accounted for using the equity method.
The carrying value of the investment in GSS
is $8.8 million (2024: $8.4 million). GSS is a
private entity with no quoted price available.
The following tables provide summarised
financial information for GSS. The information
disclosed reflects the amounts presented in the
financial statements of GSS and not Freightways
Group Limited’s share of those amounts.
GSS does not have any capital commitments and
contingent liabilities as at 30 June 2025 (2024: Nil).
The carrying value of other individually immaterial
investments in associates and joint ventures as at
30 June 2025 is $5.1 million (2024: $5.0 million).
GSS
Summarised Statement of Comprehensive Income
2025
$000
2024
$000
Revenue35,30934,426
Profit from continuing operations4,9385,180
Profit for the year4,9385,180
Other comprehensive income--
Total Comprehensive Income4,9385,180
GSS
Summarised Balance Sheet
2025
$000
2024
$000
Total current assets6,2446,413
Total non-current assets571428
Total current liabilities(1,205)(2,569)
Net Assets5,6104,272
Reconciliation to carrying amounts:
Opening net assets4,2722,592
Profit for the period4,9385,180
Dividend paid(3,600)(3,500)
Closing Net Assets5,6104,272
Group’s share in GSS33.3%33.3%
Group’s share in net assets1,8681,422
Goodwill6,94 86,94 8
Carrying Amount8,8168,370
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
92Freightways Annual Report 2025
Note 16. Deferred Tax Liability
The movement in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within the same jurisdiction, is as follows:
Group
2025
Property,
plant and
equipment
$000
Employee
entitlements
$000
Accruals and
provisions
$000
Derivative financial
instruments
$000
Intangible
assets
$000
Right-of-use
assets
$000
Leases
$000
Total
$000
Balance at beginning of year( 7,9 2 8)9,2994,701(406)(71,387)(9 7, 2 35 )110,764(52,192)
Prior period adjustment3487118--1,353(1,353)437
Transfer to income statement930444788-4,3482,241(1,611)7, 1 4 0
Amounts relating to business combinations
(Note 30)
-25 7-(70)--(38)
Adjustment for cash flow hedge reserve---797---797
Exchange rate movement35(60)(13)(3)452520(661)270
Balance at end of year(6,615)9,7795,501388(66,657)(93,121)1 0 7,1 39(43,586)
Group
2024
Property,
plant and
equipment
$000
Employee
entitlements
$000
Accruals and
provisions
$000
Derivative financial
instruments
$000
Intangible
assets
$000
Right-of-use
assets
$000
Leases
$000
Total
$000
Balance at beginning of year(8,487)9,5594,864(935)(72,665)(90,674)101,514(56,824)
Prior period adjustment1,402419(1,287)-(2,611)-1,435(642)
Transfer to income statement(1,125)( 74 4)1,073-4,267(5,571)6,7924,692
Amounts relating to business combinations3034144-(250)(990)990138
Adjustment for cash flow hedge reserve---529---529
Exchange rate movement(21)247-(128)-33(85)
Balance at end of year(7,928)9,2994,701(406)(71,387)(9 7, 2 35 )110,764(52,192)
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
93Freightways Annual Report 2025
Note 17. Trade and Other Payables
Trade and other payables are recognised when the
Group becomes obligated to make future payments
resulting from the purchase of goods or services. They
are initially recognised at fair value and subsequently
measured at amortised cost using the effective interest
rate method. Acquisition earn-out payables have been
measured at fair value. The amounts are unsecured.
Liabilities for wages and salaries, including non-
monetary benefits, and annual leave expected to
be settled within 12 months of the reporting date
are recognised in respect of employees' services
rendered up to the reporting date. They are measured
for recognition by assessing the amounts expected
to be paid when the liabilities are settled. Included
in employee entitlements is an accrual of $1.5
million (2024: $1.6 million) for potential remediation
for New Zealand Holidays Act non-compliance.
Liability for long service leave is recognised and
measured as the present value of expected future
payments to be made in respect of services
provided by the employee. Consideration is given to
expected future wage and salary levels, experience
of employee departures and periods of service.
Group
2025
$000
2024
$000
Current
Trade creditors61,01862,436
Employee entitlements33,44331,065
Acquisition earn-out payables3004,161
Other creditors and accruals50,07948,319
144,840145,981
Non-current
Acquisition earn-out payables-1,920
-1,920
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
94Freightways Annual Report 2025
Note 18. Provisions
A provision is recognised when the Group has a present
legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic
benefits will be required to settle the obligation and
a reliable estimate of the obligation can be made. If
the effect is material, provisions are determined by
discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the
time value of money and, where appropriate, the risks
specific to the liability. The increase in the provision due
only to the passage of time is recognised as an interest
expense.
EXPLANATION OF PROVISIONS
Provision for customer claims relates to actual claims
received from customers that are being considered for
payment as at reporting date and are expected to be
resolved within the next two months.
Provision for long service leave relates to the potential
leave obligation for employees who reach continuous
employment milestones required under Australian
regulations. Consideration is given to expected future
wage and salary levels, experience of employee
departures and periods of service.
Provision for lease obligations relates to estimated
payments to reinstate leased buildings and equipment
used to an appropriate condition upon the expiry of the
respective lease terms.
Group
2025
Customer
claims
$000
Long service
leave
$000
Lease
obligations
$000
Total
$000
Balance at beginning of year1,4706,9036,16914,542
Additions through business combinations-312253
Current year provision 3749651,5422,881
Amounts used during the year(477)(760) (104)(1,341)
Movement in exchange rate-(109)(44)(153)
Balance at end of year1,3677, 0 3 07,58515,982
Group
2024
Customer
claims
$000
Long service
leave
$000
Lease
obligations
$000
Total
$000
Balance at beginning of year1,4176,6515,70013,768
Additions through business combinations--158158
Current year provision 1,3701,2234823,075
Amounts used during the year(1,317)(1,004) (183)(2,504)
Movement in exchange rate-33 12 45
Balance at end of year1,4706,9036,16914,542
Analysis of total provisions:
2025
$000
2024
$000
Current3,5063,145
Non-current 12,476 11,397
Total15,98214,542
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
95Freightways Annual Report 2025
Note 20. Borrowings
Interest-bearing bank loans and overdrafts are initially recognised at fair value and subsequently measured at
amortised cost using the effective interest rate method. Costs incurred in establishing finance facilities are amortised
to the income statement over the term of the respective facilities.
Group
2025
$000
2024
$000
Bank borrowings:
Current21,538-
Non-current236,94 3265,674
258,481265,674
(A) BANK BORROWINGS
The bank borrowings agreement contains a negative pledge deed. The negative pledge includes a provision restricting
the Group from granting security interests and a cross-guarantee of all relevant indebtedness by majority of the
Company’s subsidiaries.
Note 19. Contract Liability
Contract liabilities of $20.5 million (2024: $21.1 million)
is recorded in the balance sheet reflecting the future
service obligation for:
• courier and postal products that have been sold in
advance of their use. The balance is supported by
reference to historical customer prepaid product
usage patterns.
• information management digital services prepaid by
customers. Revenue from providing these services
is recognised in the period in which the services
are rendered. This revenue is determined based on
the efforts expended relative to the total expected
effort.
• information management storage and destruction
revenue prepaid by customers. The Group provides
archive management services for documents and
computer media, including storage, retrieval and
destruction services. The Group also provides
secure handling, treatment and disposal of clinical
waste, waste renewal and related services. Revenue
from these services is recognised over time in the
reporting period in which the service is provided.
Revenue recognised during the year that was included
in the contract liabilities balance at the beginning of the
year was $19 million (2024: $20.9 million).
There are no other significant financing components in
the Group’s revenue arrangement.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
96Freightways Annual Report 2025
Facilities denominated in
New Zealand Dollars
Facilities denominated in
Australian Dollars
2025
$000
2024
$000
2025
$000
2024
$000
Bank overdraft
- total bank overdraft facilities available
(1)
12,0008,0005,000-
- amount of overdraft facilities unused12,0008,0005,000-
Loan facilities
- total loan facilities available195,000170,000180,000180,000
- US Private Placement (USPP) maturing 11 July 2025--20,00020,000
- USPP maturing 15 December 202610,00010,00010,00010,000
- Bank loan maturing 15 March 2027
(2)
-30,000--
- USPP maturing 19 March 202810,00010,00020,00020,000
- Bank loan maturing 31 May 2028
(2)
120,000120,000--
- Bank loan maturing 31 May 2029
(2)
30,000-80,00080,000
- USPP maturing 14 December 2029--50,00050,000
- Bank loan maturing 26 June 2030
(3)
25,000---
- amount of loan facilities used135,000125,000114,200128,450
- amount of loan facilities unused60,00045,00065,80051,550
Effective interest rate at 30 June as amended for interest rate hedges5.90%6.80%5.77%5.57%
(1) In September 2024, the Group negotiated an increase of NZ$4 million to its bank overdraft facilities. In May 2025, a A$5 million bank overdraft facility was established with an Australian bank.
(2) In June 2024, the Group negotiated a two-year extension of its NZ$120 million and A$80 million syndicated bank facilities that were maturing on 15 March 2026 and 15 March 2027. The extended facilities became effective from 14
June 2024. The NZ$30 million syndicated bank facility that was maturing on 15 March 2027 was extended by two years in July 2024 and became effective from 16 July 2024. The extended facilities have the same banking covenants as the
previous facilities.
(3) In June 2025, the Group negotiated an increase of NZ$25 million to its syndicated bank facilities. This increase has the same banking covenants as the existing facilities and became effective from 26 June 2025.
(B) FINANCE FACILITIES
The following finance facilities existed at the reporting date:
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
97Freightways Annual Report 2025
The fair values of borrowings are not materially
different to their carrying amount, since the interest
payable on those borrowings is either close to market
rate or the borrowings are of a short-term nature.
In April 2025, the Group entered into a new US$200
million uncommitted finance facility with a US-based
lender on the same terms as the syndicated bank
facilities. Of this facility, the US dollar equivalent
of NZ$20 million and A$100 million was drawn as
at 30 June 2025 (2024: NZ$20 million and A$100
million). The drawn amounts mature in July 2025,
December 2026, March 2028 and December
2029, as detailed in the maturity table above.
Compliance with banking covenants
The Group’s negative pledge deed requires the Group
to comply with certain half-yearly covenants. The
calculation of the covenant ratios is adjusted to
exclude the impact of the NZ IFRS 16 lease accounting
standard. The two principal covenants are that:
1) The financial charges cover ratio will not be less than
1.5 times; and
2) The operating leverage ratio will not be greater than
3.25 times.
The Group was in compliance with all of its banking
covenants throughout the year ended 30 June
2025. The Group’s banking covenants forecast
indicates that the Group will remain compliant
with all of its banking covenants in the next twelve
months. The forecast includes a sensitivity analysis
of a 20% decline in forecast earnings before interest,
income tax, depreciation and amortisation.
Net debt reconciliation
An analysis of net debt and movements in net debt are as follows:
Liabilities from financing activities
Group
Cash
$000
Leases
$000
Bank borrowings
$000
Total
$000
Balance at 30 June 202344,485(358,273) (297,194)(610,982)
Cashflow( 7, 670 )-26,99319,323
Lease additions, modifications
and terminations
-(70,959)-(70,959)
Additions through business
combinations
-(3,535)-(3,535)
Interest for the year-(17, 359)-(17, 359)
Lease repayments-67,7 1 5-67,7 1 5
Other non-cash movements--(71)(71)
Exchange rate movement(1,162)(656)4,5982,780
Balance at 30 June 202435,653(383,067) (265,674)(613,088)
Cashflow10,973-5,09216,065
Lease additions, modifications
and terminations
-(50,078)-(50,078)
Additions through business
combinations
-(350)-(350)
Interest for the year-(17, 6 4 6)-(17, 6 4 6)
Lease repayments-75,394-75,394
Other non-cash movements--123123
Exchange rate movement(3,365)2,0581,978671
Balance at 30 June 202543,261(373,689) (258,481)(588,909)
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
98Freightways Annual Report 2025
Note 21. Equity
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
are shown in equity as a reduction in the amount
of proceeds arising from the issue of shares.
CONTRIBUTED EQUITY
(i) Fully paid ordinary shares
As at 30 June 2025, there were 178,789,356 shares
issued and fully paid (2024: 178,712,819). All fully
paid ordinary shares have equal voting rights and
share equally in dividends and surplus on winding up.
(ii) Share rights
Share rights are issued to certain senior executives
under the rules of the Freightways Long Term
Incentive (LTI) Scheme, with vesting determined
at the end of a 3-year vesting period. Vesting is
subject to the achievement of certain financial
hurdles set by the Board and included in the annual
offer of participation to executives. Each share
right converts to one Freightways fully paid ordinary
share upon vesting. Share rights do not carry a
dividend entitlement and are non-transferable.
On 21 August 2024, 33,537 share rights vested upon
achievement of certain financial hurdles set by the
Board and each of the share rights converted to one
Freightways fully paid ordinary share (2024: 136,713).
The issue price per share was $12.85 (2024: $7.38).
On 21 August 2024, 55,879 share rights were redeemed
and cancelled as the performance hurdles were not met
at the end of the 3-year vesting period (2024: 13,717).
Group Group
2025
Ordinary shares
2024
Ordinary shares
2025
$000
2024
$000
Balance at beginning of year178,707,397177,428,218308,386298,075
Shares issued during the year:
- Share rights33,537136,7131,636870
- employee share plan43,00090,000400617
Decrease (increase) in employee
share plan unallocated shares
565(2,282)9(48)
Issue of fully paid ordinary shares-1,05 4 ,74 8-8,872
Balance at end of year178,784,499178,707,397310,431308,386
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
99Freightways Annual Report 2025
On 6 December 2024, 241,230 share rights were
issued to certain senior executives under the rules of
the Freightways LTI Scheme (May 2024: 225,307).
As at 30 June 2025, there were 618,697
share rights on issue (2024: 466,883).
(iii) Dividend Reinvestment Plan
The dividend reinvestment plan was not offered in
2025 (2024: the Company issued 1,054,748 fully
paid ordinary shares at $8.4115 per share).
(iv) Employee Share Plan
On 5 December 2024, the Company issued 43,000
fully paid ordinary shares to Freightways Trustee
Company Limited, as Trustee for the Freightways
Employee Share Plan, at $9.18 each, being a 10%
discount on the weighted average market price on
the NZX during the one week following Freightways’
Annual Shareholders Meeting on 23 October 2024
(2024: 90,000 fully paid ordinary shares at $6.85
each). In total, participating employees were provided
with interest-free loans of $0.4 million to fund their
purchase of the shares in the Share Plan (2024: $0.6
million). The loans are repayable over three years
and repayment commenced in December 2024.
As at 30 June 2025, the Trustee held 264,469 (2024:
596,285) fully paid ordinary shares representing
0.1% (2024: 0.3%) of all issued ordinary shares
of which 4,857 (2024: 5,422) were unallocated.
These shares are held for allocation in the future.
The Employee Share Plan operates in accordance
with section CW 26C of the New Zealand Income
Tax Act 2007 and the Trustees are appointed by the
Freightways Group Limited Board of Directors.
NATURE AND PURPOSE OF RESERVES
(i) Cash flow hedge reserve
The cash flow hedge reserve is used to record gains
or losses on a hedging instrument within a cash flow
hedge. The amounts are recognised in the income
statement when the associated hedged transactions
affect profit or loss, as described in Note 10(i).
(ii) Foreign currency translation reserve
The foreign currency translation reserve comprises all
foreign exchange differences arising from the translation
of the financial statements of foreign operations into
New Zealand dollars, as described in Note 1(c).
Note 22. Share Based Payments
The Group operates equity-settled, share-based
compensation arrangements for senior executives,
under which the Group receives services from
employees as consideration for share rights in the
Company. The fair value of the employee services
received in exchange for the share rights is recognised
as an expense. The total amount to be expensed is
determined at grant date by reference to the fair value
of the share rights allotted, taking into account market
vesting conditions (for example, total shareholder
return measures such as outperforming the median
of the NZX50 Index), but excluding the impact of
any non-market service and performance vesting
conditions (for example, compound growth rates for
earnings per share, expected profit target against
the capital employed and remaining an employee of
the Group over a specified time period). Non-market
vesting conditions are included in assumptions about
the number of share rights that are expected to vest.
The total amount expensed is recognised over the
relevant vesting period, which is the period over
which all of the specified vesting conditions are to
be satisfied. At each balance sheet date, the Group
revises its estimates of the number of share rights that
are expected to vest based on the non-market vesting
conditions. It recognises the impact of the revision to
original estimates, if any, in the income statement.
A) DESCRIPTION OF SHARE-BASED
PAYMENT ARRANGEMENTS
Freightways Long-term Incentive Scheme (the ‘Scheme’)
The Group operates a Board approved long-
term incentive scheme for certain Freightways
senior executives. Under this Scheme, share
rights are issued at ‘Nil’ consideration which
entitles participants to receive ordinary shares in
Freightways within three years of vesting period.
The total contractual life of share rights is 3 years.
Share rights will vest if the participant remains
employed by Freightways for the duration of the
vesting period and the following performance
hurdles are met over the assessment period.
They will vest in the following proportions:
- Total Shareholder’s Return (TSR) class of rights
(50% of share rights)
This will vest over the assessment period
on a progressive vesting scale based on
the Group’s TSR relative to the TSR of other
constituents of the NZX50 Index.
- Cost of Capital class of rights (50% of share rights)
This will vest based on net operating
profit after tax (NOPAT) exceeding a
cost of capital hurdle (determined by the
Board) over the assessment period.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
100Freightways Annual Report 2025
On vesting date, subject to meeting service and
performance conditions, each share right can be
exercised to receive one ordinary share. The senior
executives are liable for tax on the shares received
at this point.
B) RECONCILIATION OF OUTSTANDING
SHARE RIGHTS
Number of
share rights
2025 2024
Balance at beginning of the year466,883392,006
Issued during the year241,230225,307
Cancelled during the year(55,879)(13,717)
Fully paid-up or exercised
during the year
(33,537)(136,713)
Balance at end of the year618,697466,883
Exercisable at end of the year152,16089,416
2025
$000
2024
$000
Total amount expensed
during the year
1,213886
C) EFFECT OF SHARE-BASED PAYMENT
ARRANGEMENTS ON PROFIT OR LOSS, FINANCIAL
POSITION AND EQUITY
Fair value measurement of share-based payment arrangements
The fair value of share rights has been measured using Monte Carlo simulation. The fair value measurement also
considers the terms and conditions upon which partly-paid shares and share rights were issued. Service and non-
market performance conditions attached to the arrangements were not considered in measuring fair value.
The inputs used in the measurement of fair values at grant date of share rights issued during the year were as follows:
Share rights
Grant date:24 Nov 202225 Oct 202322 Oct 2024
Fair value at grant date$6.51 - TSR
class of rights
$3.70 - TSR
class of rights
$6.16 - TSR
class of rights
$9.13 – NOPAT
class of rights
$7.04 – NOPAT
class of rights
$8.68 – NOPAT
class of rights
Exercise priceNilNilNil
Share price at grant date$9.99$8.05$9.75
Expected dividends2.5%4.5%4.13%
Expected volatility 29.9%20.8%22.6%
Expected life 0.2 years1.2 years2.2 years
Risk free interest rate (based on government bonds)4.48%5.45%3.88%
Expected volatility has been based on an evaluation of the historical volatility of the Freightways’ share
price, particularly over the historical period commensurate with the expected term. The expected term
of share rights has been based on historical experience and general option holder behaviour.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
101Freightways Annual Report 2025
Note 23. Reconciliation of profit
for the year with cash flows from
operating activities
Group
Note
2025
$000
2024
$000
Profit for the year80,10870,926
Add non-cash items:
Depreciation and amortisation4102,49692,749
Movement in provision for doubtful debts853 522
Movement in deferred income tax(1,346)(2,774)
Net loss on disposal of property, plant and equipment 483469
Net foreign exchange (gain) loss(288)169
Share of profits of associates(2,288)(2,005)
Change in fair value of contingent consideration(1,750)-
Movement in working capital, net of effects of acquisitions of businesses:
Decrease in trade and other receivables(3,727)(8,449)
(Increase) decrease in inventories (4,494)622
Increase in trade and other payables 7, 0 9 24,884
Decrease in income taxes payable(3,492) (450)
Net cash inflows from operating activities173,647156,663
Note 24. Capital Commitments and Contingent Liabilities
The Group had made capital commitments to purchase or construct buildings and equipment for $12.3 million at 30 June 2025 (2024: $13.5 million), principally relating to the
completion of operating facilities and purchase of replacement equipment throughout the Group.
As at 30 June 2025, the Group had outstanding letters of credit and bank guarantees issued by its lenders totalling approximately $13.4 million (2024: $13.6 million). The letters of
credit relate predominantly to support for regular payroll payments. The bank guarantees relate to security given to various landlords in respect of leased operating facilities.
Freightways remains subject to a Commerce Commission investigation and continues to cooperate with the Commerce Commission. Freightways does not consider that this
process will have a material financial or operational impact on the Group.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
102Freightways Annual Report 2025
DILUTED EARNINGS PER SHARE
Diluted earnings per share is calculated by dividing
the profit for the year attributable to shareholders
by the weighted average number of ordinary shares
outstanding during the year, adjusted to include
all dilutive potential ordinary shares (for example,
share rights on issue) as if they had been converted
to ordinary shares at the beginning of the year:
Group
20252024
Profit for the year attributable
to shareholders ($000)
79,91970,759
Weighted average number
of ordinary shares (‘000)
178,766178,366
Effect of dilution (‘000)619467
Diluted weighted average
number of ordinary shares (‘000)
179,385178,833
Diluted earnings per
share (cents)
44.639.6
Group
20252024
Profit for the year attributable
to shareholders ($000)
79,91970,759
Weighted average number
of ordinary shares (‘000)
178,766178,366
Basic earnings per share (cents)4 4.739.7
Note 25. Earnings per Share
BASIC EARNINGS PER SHARE
Basic earnings per share is calculated by dividing
the profit for the year attributable to shareholders
by the weighted average number of ordinary shares
outstanding during the year:
Payments to joint venture: During the year, the Group
paid Parcelair Limited $16 million (2024: $14.3 million)
for the provision of airfreight linehaul services on normal
commercial terms. Parcelair Limited is incorporated
in New Zealand and is half-owned by the Group.
Key management compensation: Compensation
paid during the year (or payable as at year end in
respect of the year) to key management, which
includes senior executives of the Group and non-
executive independent directors, is as follows:
Group
2025
$000
2024
$000
Short term employee benefits 10,73311,827
Share-based payments (Note 22)1,213886
Group
2025
$000
2024
$000
Sale of courier services to GSS11,94612,256
Purchase of goods and
services from GSS
1,1861,661
Receivables from GSS at
end of year
1,0391,355
Payables to GSS at end of year11689
Note 26. Net Tangible Assets
per Security
Net tangible assets (liabilities) per security at 30 June
2025 was ($0.79) (2024: ($0.92)). Net tangible assets
exclude intangible assets but includes software.
There were 178,789,356 shares issued and fully
paid as at 30 June 2025 (2024: 178,712,819).
Note 27. Transactions with
Related Parties
Trading with related parties: The Group has not
entered into any material external related party
transactions which require disclosure. The Group
does trade, on normal commercial terms, with certain
companies in which there are common directorships.
Purchases from entities controlled by key management
personnel: The Group leases a property, on normal
commercial terms, from an entity that is controlled by
a member of the Group’s key management personnel.
Payments to associates: During the year, the
following transactions occurred with Sweetspot
Group Limited (GSS), an entity incorporated in New
Zealand and is 33.3% owned by the Group:
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
103Freightways Annual Report 2025
Note 28. Financial Risk Management
28.1 FINANCIAL RISK FACTORS
The Group’s activities expose it to various financial
risks, including liquidity risk, credit risk and
market risk (which includes currency risk and cash
flow interest rate risk). The Group’s overall risk
management programme focuses on the uncertainty
of financial markets and seeks to minimise
potential adverse effects on the Group’s financial
performance. The Group uses derivative financial
instruments to hedge certain risk exposures.
Treasury activities are performed centrally by the
Group’s corporate team, supplemented by external
financial advice and the use of derivative financial
instruments is governed by a Group Treasury Policy
approved by the Company’s Board of Directors.
The Group does not engage in speculative
transactions or hold derivative financial
instruments for trading purposes.
(A) LIQUIDITY RISK
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when they fall due. The
Group’s approach to liquidity risk management includes maintaining sufficient cash reserves and ensuring adequate
committed finance facilities are available. In assessing its exposure to liquidity risk, the Group regularly monitors
rolling 3, 6 and 12 months cash requirement forecasts.
The table below analyses the Group’s financial liabilities into relevant maturity groupings, based on the remaining
period from the reporting date to the contractual maturity date.
The amounts disclosed below are contractual, undiscounted cash flows.
Group
Less than
6 months
$000
6-12
months
$000
1-2 years
$000
2-5 years
$000
More than
5 years
$000
Total
$000
2025
Bank borrowings30,0638,47336,489251,524-326,549
Trade and other payables127,627 39,624---1 67, 2 51
Lease liabilities37, 3 8 135,47665,188141,718174 , 459454,222
Derivative financial instruments196339606253-1,394
2024
Bank borrowings7,9 4 67, 8 7013,631242,39556,219328,061
Trade and other payables128,841 32,830- 1,920 -163,591
Lease liabilities34,75433,50063,903143,152218,005493,314
The amounts expected to be payable in relation to the interest rate swaps have been estimated using forward interest
rates applicable at the reporting date.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
104Freightways Annual Report 2025
(B) CREDIT RISK
Credit risk refers to the risk of a counterparty failing
to discharge its obligation. Financial instruments
which potentially subject the Group to credit risk
principally consist of bank balances, accounts
receivable and derivative financial instruments.
The Group has credit policies that are used to
manage the exposure to credit risk. As part of
these policies, exposures with counterparties are
monitored on a regular basis. The Group performs
credit evaluations on all customers requiring credit
and generally does not require collateral.
A default in a financial asset is when the counterparty
fails to make contractual payments when debt recovery
processes have been exhausted and/or the counterparty
is declared bankrupt or in the case of companies,
placed in administration, receivership or liquidation.
The Group’s Treasury Policy ensures due consideration
is given to the financial standing of the counterparty
banks with which the Group holds cash reserves and
transacts derivative financial instruments. A minimum
Standard & Poor’s long-term credit rating of A/A- is
required to qualify as an approved counterparty,
with the exception that a maximum of 1% of total
debt exposure may be with counterparty with BBB
credit rating. The quantum of transactions entered
into with the Group’s various financial lenders is
also balanced to mitigate exposure to concentrated
counterparty credit risk with any one financial provider.
Other than cash and cash equivalents, the Group does
not have any significant concentrations of credit risk.
For counterparties to trade receivables that are
neither past due nor impaired, payments have
historically been received regularly and on time.
Group
2025
$000
2024
$000
Cash and cash equivalents43,261 35,653
Trade and other receivables150,498146,794
Derivative financial instruments-1,429
193,759183,876
The Group considers its maximum exposure to credit risk to be as follows:
Cash and cash equivalents are held with banks with Standard & Poor’s rating of AA-.
Trade receivables analysis
At 30 June aging analysis of trade receivables is as follows:
Group
20252024
Gross
carrying
amount
$000
Expected
loss rate
%
Loss
allowance
$000
Gross
carrying
amount
$000
Expected
loss rate
%
Loss
allowance
$000
Current109,9510.7773115,9040.8927
31-60 days over standard terms23,8823.277622,8543.5800
60-90 days over standard terms2,43222.55472,42722.5546
91+ days over standard terms3,96 433.81,3423,44635.01,207
140,2293,438144,6313,480
The Group has $26.8 million (2024: $25.2 million) of financial assets that are overdue and not impaired.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
105Freightways Annual Report 2025
(C) MARKET RISK
Foreign exchange risk
Exposure to foreign exchange risk arises when (i)
a transaction is denominated in a foreign currency
and any movement in foreign exchange rates will
affect the value of that transaction when translated
into the functional currency of the Company
or a subsidiary; and (ii) the value of assets and
liabilities of overseas subsidiaries are required to
be translated into the Group’s reporting currency.
The Group’s Treasury Policy is used to assist in
managing foreign exchange risk. In accordance with
Treasury Policy guidelines, foreign exchange hedging
is used as soon as a defined exposure to foreign
exchange risk arises and exceeds certain thresholds.
As disclosed in Note 20, at 30 June 2025 the Group
had Australian dollar denominated bank borrowings of
AUD114,200,000 (2024: AUD128,450,000). Of these
borrowings, AUD14,200,000 (2024: AUD14,200,000)
were borrowed by a New Zealand subsidiary and have
been translated at the prevailing foreign currency rate
as at balance date. The rest of the Australian dollar
denominated bank borrowings have been borrowed
by an Australian subsidiary and are translated as
part of the consolidation of the Group for reporting
purposes. The Group has no other outstanding
foreign currency denominated monetary items.
The table on the following page details the Group’s
sensitivity to the increase and decrease in the New
Zealand dollar (NZD) against the Australian dollar (AUD)
in respect of the Australian dollar denominated bank
borrowings, borrowed in New Zealand. The sensitivity
analysis only includes outstanding foreign currency
denominated monetary items at the reporting date
and adjusts their translation as at that date for the
change in foreign currency rates. A positive number
indicates a decrease in liabilities (bank borrowings)
where the NZD strengthens against the AUD.
Interest rate risk
Exposure to cash flow interest rate risk arises in
borrowings of the Group that are at the prevailing
market interest rate current at the time of drawdown
and are re-priced at intervals not exceeding 180 days.
Interest rate risk is identified by forecasting
short and long-term cash flow requirements.
The Group’s Treasury Policy is used to assist in
managing interest rate risk. Treasury Policy requires
projected annual core debt to be effectively hedged
within interest rate risk control limits against
adverse fluctuations in market interest rates.
The following table demonstrates the sensitivity of
the Group’s equity and profit after tax to a potential
change in interest rates by plus or minus 100 basis
points, with all other variables held constant and in
relation only to that portion of the Group’s borrowings
that are subject to floating interest rates.
Significant assumptions used in the interest
rate sensitivity analysis include:
(i) reasonably possible movements in interest rates
were determined based on the Group’s current mix
of debt in New Zealand and Australia, the level of
debt that is expected to be renewed and a review of
the last two year’s historical movements; and
(ii) price sensitivity of derivatives has been based on a
reasonably possible movement of interest rates at
balance dates by applying the change as a parallel
shift in the forward curve.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
106Freightways Annual Report 2025
Sensitivity Analysis:
Interest Rate Movement
NZD/AUD
Movement
Impact on profit
Impact on other
components of equity
Impact on
liabilities & equity
Carrying amounts
$000
+100 basis points
$000
-100 basis points
$000
+100 basis points
$000
-100 basis points
$000
+ or –
10% in value of NZD
$000
2025 Financial assets
Cash and cash equivalents43,261311(311)311(311)-
Trade and other receivables154,709-----
Financial liabilities
Borrowings258,481(1,050) 1,050(1,050) 1,0501,390/(1,699)
Derivative financial instruments1,342--2,222(2,290)-
2024 Financial assets
Cash and cash equivalents35,653257(257)257(257)-
Trade and other receivables152,988-----
Derivative financial instruments1,429--1,299(1,352)-
Financial liabilities
Borrowings265,674(1,218) 1,218(1,218) 1,2181,413/(1,726)
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
107Freightways Annual Report 2025
(D) FAIR VALUE ESTIMATION
The carrying value less impairment provision of trade
receivables and payables is a reasonable approximation
of their fair values due to the short-term nature of
trade receivables and payables. The fair value of
financial liabilities for disclosure purposes is estimated
by discounting the future contractual cash flows
at the current market interest rate that is available
to the Group for similar financial instruments.
The fair values of financial instruments are estimated
using discounted cash flows. The fair value of interest
rate swaps and foreign exchange hedges are calculated
as the present value of the estimated future cash flows.
Unless otherwise stated, all other carrying amounts
are assumed to equal or approximate fair value.
The Group uses various methods in estimating the fair
value of a financial instrument. The methods comprise:
Level 1 - Quoted prices (adjusted) in active markets
for identical assets or liabilities at the reporting date.
A market is regarded as active if quoted prices are
readily and regularly available from an exchange, dealer,
broker, industry group, pricing service, or regulatory
agency, and those prices represent actual and regularly
occurring market transactions on an arm’s length basis.
Level 2 - Inputs that are observable for the asset
or liability, either directly (i.e., as prices; other than
quoted prices referred to in Level 1 above) or indirectly
(i.e., derived from prices). The fair value of financial
instruments that are not traded in an active market
(for example, over-the-counter derivatives and US
Private Placement (USPP)) is determined by using
valuation techniques. These valuation techniques
maximise the use of observable market data where
it is available and rely as little as possible on entity
specific estimates. If all significant inputs required
to fair value an instrument are observable, the fair
value of an instrument is included in Level 2.
Level 3 - Inputs for the asset or liability that
are not based on observable market data (i.e.,
unobservable inputs). In these cases, the fair value
of an instrument would be included in Level 3.
Specific valuation techniques used to
value financial instruments include:
• In respect of interest rate swaps, the fair value is
calculated as the present value of the estimated
future cash flows based on observable yield curves;
• In respect of forward foreign exchange contracts,
the fair value is calculated using forward exchange
rates at the balance sheet date, with the resulting
value discounted back to present value;
• In respect of USPP, the fair value is calculated
on a discounted cash flow basis using the
USD Bloomberg curve and applying discount
factors to the future USD interest payment
and principal payment cash flows; and
• Discounted cash flow analysis for
other financial instruments.
Specific valuation techniques used to value contingent
consideration in a business combination and
estimated purchase price adjustments include:
• fair value is calculated as the present value of the
estimated future cash flows based on management’s
assessment of future performance; and
• management’s knowledge of the business and the
industry it operates in.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
108Freightways Annual Report 2025
The amounts below are for the derivative financial instruments, USPP and contingent consideration in a business
combination. There were no transfers between levels during the year.
Level 1
$000
Level 2
$000
Level 3
$000
Total
$000
2025
Assets
Derivative financial instruments----
Total assets----
Liabilities
Derivative financial instruments-1,342-1,342
USPP-1 2 7, 6 8 9-1 2 7, 6 8 9
Contingent consideration in a business combination--300300
Total liabilities-129,031300129,331
2024
Assets
Derivative financial instruments-1,429-1,429
Total assets-1,429-1,429
Liabilities
USPP-129,421-129,421
Contingent consideration in a business combination--6,0816,081
Total liabilities-129,4216,081135,502
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
109Freightways Annual Report 2025
The following table shows the valuation technique used in measuring Level 3 contingent consideration in a business
combination and estimated purchase price adjustments:
DescriptionFair value
as at 30
June 2025
Fair value
as at 30
June 2024
Unobservable
Input
Range of
inputs
2025
Range of
inputs
2024
Relationship of
unobservable inputs to
fair value (sensitivity)
Contingent
Consideration
3006,081Achievement
of Annual
Budget
92.5% -
1 0 7. 5 %
92.5% -
1 0 7. 5 %
A change in the achievement of
the annual budget by 250 bps
would increase/decrease the
FV of the consideration by $0.1
million (2024: $0.1 million)
Probability
weighted
average of
achieving
Annual Budget
99%99%A change in the achievement of
the annual budget by 250 bps
would increase/decrease the
FV of the consideration by $0.1
million (2024: $0.1 million)
Discount Rate5.8%6.8%A change in the discount
rate by 100 bps would
increase/decrease the FV
of the consideration by $0.1
million (2024: $0.1 million)
The following table presents the changes in Level 3 instruments, which are carried at fair value through profit or loss.
Contingent consideration in
a business combination
2025
$000
2024
$000
Opening balance6,0814,835
Acquisition of businesses7802,000
Settlement(4,813)(754)
Change in fair value of contingent consideration(1,750)-
Exchange rate movement2-
Closing balance (Note 30)3006,081
28.2 CAPITAL RISK MANAGEMENT
Group capital (Shareholders Funds) consists of share
capital, other reserves and retained earnings. To
maintain or alter the capital structure, the Group
has the ability to vary the level of dividends paid
to shareholders, return capital to shareholders
or issue new shares, reduce or increase bank
borrowings or sell assets. The Group does not have
any externally imposed capital requirements.
The Group’s long term debt facilities impose a number
of banking covenants. These covenants are calculated
monthly and are reported to the banks half-yearly on a
rolling 12-months basis. The most significant covenant
relating to capital management is a requirement for
the Group to maintain its operating leverage (net debt
divided by profit before interest, tax, depreciation
and amortisation) below a maximum level. There
have been no breaches of banking covenants or
events of review during the current or prior year.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
110Freightways Annual Report 2025
Financial assets at
amortised cost
Derivatives used
for hedging
Total
Group
2025
$000
2024
$000
2025
$000
2024
$000
2025
$000
2024
$000
Trade and other receivables
(excluding prepayments)
150,498152,988- - 150,498152,988
Cash and cash equivalents43,26135,653- - 43,26135,653
Derivative financial instruments---1,429-1,429
Total193,759188,641-1,429193,759190,070
(A) ASSETS, AS PER BALANCE SHEET
Derivatives used
for hedging
Other financial
liabilities at
amortised cost
Other financial
liabilities held
at fair value
Total
Group
2025
$000
2024
$000
2025
$000
2024
$000
2025
$000
2024
$000
2025
$000
2024
$000
Borrowings
(excluding lease liabilities)
--258,481265,674--258,481265,674
Lease liabilities--373,689383,067--373,689383,067
Derivative financial
instruments
1,3421,342-
Trade and other payables --106,783115,2293006,0811 0 7, 0 8 3121,310
Total1,342-738,953763,9703006,081740,595770,051
(B) LIABILITIES, AS PER BALANCE SHEET
Note 29. Financial Instruments
by Category
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
111Freightways Annual Report 2025
Note 30. Business combinations
PRIOR PERIOD ACQUISITION
– FIRST GLOBAL LOGISTICS (“FG”)
Effective 1 November 2023, the Group acquired
the business and assets of FG, an end-to-end
international e-commerce logistics business in New
Zealand for total consideration of $5.9 million. The
consideration comprises a $3.9 million non-cash
settlement of trade payables between the Group
and the acquiree and a future earn-out of up to $2
million payable at the end of the 2025 financial
year. The acquired business expands the Group’s
international e-commerce logistics know-how and
operates within the Group’s express package division.
As at 30 June 2025, the estimated discounted future
earn-out payment for the acquisition of FG was $0.3
million (30 June 2024: $1.9 million), with the change
during the year predominantly arising from a decrease
in the estimated future final payment for the acquisition
by $1.5 million (2024: nil). The Group has forecast
several scenarios and probability-weighted each to
determine an updated fair value for this contingent
payment arrangement. The liability is presented within
current trade and other payables in the balance sheet.
PRIOR PERIOD ACQUISITION
– PRODUCEPRONTO (“PP”)
Effective 1 November 2021, the Group acquired the
business and assets of PP for an initial consideration
of approximately $12.1 million and future earn-out
of up to $3.8 million over 3 years. PP operates fourth
party logistics (4PL) services with 365 days per year,
same-day fresh and frozen delivery to convenience
outlets in New Zealand and businesses across Auckland.
This acquired business operates within the Group’s
express package & business mail operating segment.
As at 30 June 2024, the estimated discounted future
earn-out payment for the acquisition of PP was
$3.7 million. The final earn-out amount was $3.5
million and this was paid in September 2024.
RECONCILIATION OF PAYMENTS FOR
BUSINESSES ACQUIRED
$000
Cash paid for contingent consideration
for the acquisition of ProducePronto
3,458
Cash paid for other acquisitions1,355
Payments for businesses acquired,
net of cash acquired
4,813
Note 31. Significant Events After
Balance Date
DIVIDEND DECLARED
On 18 August 2025, the Directors declared a final
dividend of 21 cents per share (approximately $37.5
million) in respect of the year ended 30 June 2025
with the dividend being payable on 1 October 2025.
The dividend will be fully imputed for New Zealand
tax resident shareholders and will be franked to 46%
for Australian tax resident shareholders. The record
date for determination of entitlements to the dividend
is 12 September 2025. The Freightways Dividend
Reinvestment Plan will not be offered for this dividend.
PARCELAIR LIMITED
Freightways and Airwork Holdings Limited
(Airwork), each through a subsidiary, are 50/50
joint venture partners in Parcelair Limited, that
provides services to the Freightways network.
Freightways is aware of the appointment of receivers
to Airwork and certain Airwork subsidiaries.
The receivers have announced an intention for
Airwork to continue to trade as a going concern.
Freightways will continue to closely monitor the
situation with Airwork and, if necessary, has a
contingency plan which can be implemented on
short notice and with minimal operational impact.
At the date of this report, there have been no other
significant events subsequent to the reporting date.
113 Shareholder Information
115 Corporate Governance Statement
120 Directory
121 Company particulars
ADDITIONAL DISCLOSURES
112
112Freightways Annual Report 2025
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
113Freightways Annual Report 2025
Shareholder Information
STOCK EXCHANGE LISTING
The Company’s fully paid ordinary shares are listed
on NZX (the New Zealand Stock Exchange) and
ASX (Australian Securities Exchange) as a foreign
exempt listing. The Foreign Exempt Listing means
that the Company is expected to comply primarily
with the Listing Rules of the NZX Main Board (being
the rules of its home exchange) and is exempt from
complying with most of ASX’s Listing Rules.
For the purpose of ASX Listing Rule 1.15.3, the
Company confirms that it has complied with the NZX
Listing Rules during the year ended 30 June 2025.
The Company has not been granted or relied on any
waiver published by NZX during the year ended 30 June
2025. Neither NZX nor ASX has taken any disciplinary
action against the Company during the financial year
ended 30 June 2025. In particular, there was no other
exercise of powers by NZX under NZX Listing Rule 9.9.3.
Distribution of shareholders and shareholdings as at 31 July 2025
Size of shareholdingNumber of
holders
Number of
shares held
% of issued
capital
1 to 1,9993,6433,141,6421.76
2,000 to 4,9992,1306,445,6273.61
5,000 to 9,9999986,512,6983.64
10,000 to 49,99965611,320,6456.33
50,000 to 99,999191,20 4,9500.67
100,000 to 499,999337, 5 8 9,70 84.25
500,000 to 999,99975,585,7803.12
1,000,000 and over23136,988, 30676.62
Total shareholders7, 5 0 9178,789,356100.00
Geographic distribution
New Zealand7, 1 4 3145,967,98581.64
Australia29532,573,38618.22
Other71247,9850.14
7, 5 0 9178,789,356100.00
Substantial product holders as at 31 July 2025
Based upon notices received, the following persons are deemed to be substantial product holders in accordance with
Section 293 of the Financial Markets Conduct Act 2013:
Voting securities
Number%
FirstCape Group Limited15,955,1908.92
The total number of issued voting securities of the Company as at 31 July 2025 was 178,789,356.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
114Freightways Annual Report 2025
Top twenty registered shareholders of listed shares as at 31 July 2025
* held through NZ Central Securities Depository Limited
Number of Shares held% of issued capital
Custodial Services Limited <A/C 4>24,410,94613.65
BNP Paribas Nominees (NZ) Limited <BPSS40> *15,913,3978.90
HSBC Nominees (New Zealand) Limited <HKBN90> *14,079,6907. 8 8
Citibank Nominees (New Zealand) Limited <CNOM90> *9,095,1625.09
TEA Custodians Limited <TEAC40> *8,862,1704.96
FNZ Custodians Limited7,74 0 , 8 5 34.33
Forsyth Barr Custodians Limited <1-Custody>7, 69 0 ,9 7 14.30
JPMorgan Chase Bank <CHAM24> *7, 1 3 8 , 4 613.99
HSBC Nominees A/C NZ Superannuation Fund Nominees Limited <SUPR40> *5,416,4723.03
Accident Compensation Corporation <ACCI40> *4,755,5672.66
New Zealand Depository Nominee Limited <A/C 1 Cash Account>4,215,0382.36
ANZ Custodial Services New Zealand Limited <PBNK90> *3,467,4521.94
JBWere (NZ) Nominees Limited <NZ Resident A/C>3 , 4 67, 1 2 31.94
ANZ Wholesale Australasian Share Fund <PNAS90> *3,107,5611 .74
Generate Kiwisaver Public Trust Nominees Limited <NZPT44> *3,048,2511.70
PTJR Pty Limited2,923,0621.63
HSBC Nominees (New Zealand) Limited <HKBN45> *2,728,8311.53
Simplicity Nominees Limited *1,971,9051.10
Dean John Bracewell & Phillipa Anne Bracewell & Bracewell Trustee Company Limited <Bracewell Family A/C>1,753,7330.98
PT (Booster Investments) Nominees Limited1,434,6590.80
133,221,30474.51
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
115Freightways Annual Report 2025
Corporate governance statement
This statement is an overview of the Group’s main
corporate governance policies, practices and
processes adopted or followed by the Board of
Directors of Freightways Group Limited (the Board).
The Group’s corporate governance processes do not
materially differ from the principles set out in the
NZX Corporate Governance Code, except as set out
within this statement. In preparing this statement,
Freightways has reported against the NZX Corporate
Governance Code dated 31 January 2025.
This statement has been approved by the
Board and is current as at 30 June 2025.
THE ROLE OF THE BOARD OF DIRECTORS
The Board is committed to the highest standards
of corporate governance and ethical behaviour,
both in form and substance, amongst its
Directors and the people of the Company
and its subsidiaries (Freightways).
BOARD RESPONSIBILITIES
The Board’s corporate governance responsibilities
include overseeing the management of
Freightways to ensure proper direction and
control of Freightways’ activities.
In particular, the Board will establish corporate
objectives and monitor management’s implementation
of strategies to achieve those objectives. It will
approve budgets and monitor performance against
budget (including Financial Reporting and any
applicable Non-Financial Reporting). The Board will
ensure adequate risk management strategies are
in place and monitor the integrity of management
information and the timeliness of reporting to
shareholders and other stakeholder groups.
The Board will follow the NZX Corporate Governance
Code and Directors will act in accordance with their
fiduciary duties in the best interests of the Company.
A formal Board Charter, which can be found at h t tp s://
www.freightways.co.nz/about/corporate-governance/,
has been adopted by the Board that elaborates on
Directors’ responsibilities. The Board will internally
evaluate its performance and the performance of its
committees annually. Any recommendations flowing
from this review will be implemented promptly.
The Board will review its Corporate Governance
practice against current best practice and continue
to develop company policies and procedures, as
deemed necessary. The Board can seek internal and/
or external advice to support its decision-making.
BOARD COMPOSITION, APPOINTMENT
AND PERFORMANCE
In accordance with the NZX Listing Rules, the Board will
comprise not less than three Directors. The Board will be
comprised of a mix of persons with complementary skills
appropriate to the Company’s objectives and strategies,
having regard to the Diversity & Inclusion Policy and any
measurable objectives set by the Board. The Board must
include not less than two persons (or if there are eight
or more Directors, three persons or one third rounded
down to the nearest whole number of Directors) who
are deemed to be independent. The majority of the
Board must be independent Directors, including the
Chair. The Chair and the CEO must be different people.
Freightways’ Board currently comprises six Directors:
the non-executive Chair and five non-executive
Directors. All Freightways’ Directors are independent.
Key executives attend board meetings by invitation.
The procedures for the nomination and appointment of
Directors are administered by the Board and detailed
in the Board Charter. The Board is responsible for
making Director nominations available in accordance
with the procedure set out in the NZX Listing Rules,
reviewing the suitability of a Director nominee in respect
of that nominee’s proposed appointment, procuring
appropriate checks to confirm that a Director nominee
is fit and proper to be appointed a Director, ensuring
effective induction programmes are in place for the
Directors and confirming the status of Directors’
independence for external reporting purposes.
Each Director must enter into a written agreement
with the Company on appointment that outlines
the terms of the Director’s appointment.
The Directors all undertake appropriate training to
remain current on how to best perform their duties
as Directors of the Company. The Board Charter
requires an annual review of the Board and Committee
composition, structure and succession to ensure its
members are performing in line with their obligations
and the Company’s values and strategy. The Board
assesses its own performance, and the Board Chair
continually monitors the dynamic of the Directors to
ensure it is always working optimally. An assessment by
an external consultant intended for the 2025 financial
year will take place in the 2026 financial year.
Please see Director’s Report section of this Annual
Report for further disclosures relating to the Board.
DIVERSITY & INCLUSION
The Company has a formal diversity & inclusion policy
which can be found at https://www.freightways.
co.nz/about/corporate-governance/. The Company
is committed to encouraging diversity throughout all
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
116Freightways Annual Report 2025
BOARD MEETINGS
The following table outlines the number of board
meetings attended by Directors during the course of the
2025 financial year:
DirectorMeetings
Held
Meetings
Attended
Mark Cairns99
Abby Foote99
David Gibson99
Peter Kean98
Fiona Oliver99
Mark Rushworth
(retired 23 October 2024)
44
Grant Devonport
(appointed 25 November 2024)
44
BOARD COMMITTEES
Standing committees have been established to assist
in the execution of the Board’s responsibilities. These
committees utilise their access to management
and external advisors at a suitably detailed level,
as deemed necessary and report back to the full
Board. Each of these committees has a charter
outlining its composition, responsibilities and
objectives. The committees are as follows:
Audit & Risk Committee: The Audit & Risk Committee
is responsible for overseeing risk management,
accounting and audit activities and reviewing the
adequacy and effectiveness of internal controls,
meeting with and reviewing the performance of
external auditors, reviewing the Annual Report and
Half Year Results Release, making recommendations
on financial and accounting policies, and, in relation to
the Company’s climate-related risks and opportunities,
reviewing: their inclusion in the development of
the Company’s strategy, the proposed metrics and
targets for their management and the climate-related
disclosures for the Company. The Company’s Audit &
Risk Committee Charter can be found at https://www.
freightways.co.nz/about/corporate-governance/.
The Audit & Risk Committee oversees the Company’s
engagement and communications with its external
auditors, which includes meetings between members
of the Audit & Risk Committee and the external
auditors (both with and without management present).
Services provided by the external audit firm to the
Company outside of its statutory audit role are
monitored by the Audit & Risk Committee to ensure
that the independence of its auditors is maintained.
The external auditor is invited to attend meetings
when it is considered appropriate by the Audit &
Risk Committee. The Company’s external auditor
also attends the annual meetings and is available to
answer shareholder questions relating to the audit.
The Company’s current external auditor was
reappointed for the FY25 audit following completion of a
formal Request for Proposal process, as announced on
the NZX and ASX on 24 April 2024. That reappointment
involved a change in the Lead Audit Partner, with
the FY25 audit being the first audit of the Company
undertaken by that current Lead Audit Partner. The
Audit & Risk Committee ensures that the Lead Audit
Partner is changed at least every five years.
The Group has an established internal audit
function for financial controls and draws on external
expertise where required to perform complementary
levels of its operations and by ensuring all employees
have an equal opportunity to realise their career
ambitions within Freightways. As required to be
reported by the NZX Listing Rules, the Company
advises that from a gender diversity perspective,
as at 30 June 2025, the gender balance of the
Company’s Directors and Officers is as below:
OfficersDirectors
June
2025
June
2024
June
2025
June
2024
Female1122
Male7744
Total8866
The Company has committed to promoting diversity and
inclusion in the workplace through the development and
advancement of under-represented groups in the Group
with career opportunities, professional development
courses and training. The Company has set an objective
of having 40% of the Executive, Leadership Teams and
Freightways Board to be composed of representatives
of currently under-represented groups (women, ethnic
groups and employees under 43 years-old) by 2030.
As at 30 June 2025, these under-represented groups
make up 49% of the Executive, Leadership Teams and
Freightways Board, exceeding the 40% objective.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
117Freightways Annual Report 2025
internal audits of non-financial control related
areas of the Group. The internal audit programme
covers a broad spectrum of risks and findings
are presented to the Audit & Risk Committee.
The members are Abby Foote (Chair), Mark
Cairns, David Gibson and Grant Devonport. All
members are independent non-executive Directors.
Meetings were held and attended, as follows:
DirectorMeetings
Held
Meetings
Attended
Abby Foote77
Mark Cairns77
David Gibson77
Grant Devonport
(appointed 28 November 2024)
44
People & Safety Committee: The People & Safety
Committee (previously the People & Remuneration
Committee) is responsible for overseeing the
Freightways human resource practices, providing for
a remuneration policy for Directors and executives,
reviewing the remuneration and benefits of the
senior management, reviewing and recommending
the remuneration of Board members, making
recommendations to the Board in respect of succession
planning, and reviewing and making recommendations
to the Board in respect of health & safety standards and
practices. The Company’s People & Safety Committee
Charter and the Company’s Remuneration Policy can
be found at https://www.freightways.co.nz/about/
corporate-governance/. The Company’s Remuneration
Policy does not prescribe specific relative weightings to
remuneration and relevant performance criteria as the
Board has determined that it is more appropriate for
the People & Safety Committee to consider and adopt
relevant weightings and performance criteria on a case-
by-case basis in respect of each applicable officer.
The members of the People & Safety Committee are
Peter Kean (Chair), Mark Cairns, Fiona Oliver and Grant
Devonport. All members are independent non-executive
Directors and members of management attend only
at the invitation of the People & Safety Committee.
Meetings were held and attended, as follows:
DirectorMeetings
Held
Meetings
Attended
Peter Kean33
Mark Cairns33
Fiona Oliver33
Grant Devonport
(appointed 28 November 2024)
11
Mark Rushworth
(retired 23 October 2024)
11
Disclosure Committee: The Disclosure Committee
is responsible for ensuring that adequate processes
and controls are in place for the identification of
material information and the release of material
information when required, reviewing disclosure
obligations (including reviewing announcements
and assessing whether trading halts may be
required) and engaging with the Board as required
on such obligations and overseeing compliance with
continuous and periodic disclosure requirements.
The members of the Disclosure Committee are Mark
Cairns, Abby Foote, the Chief Executive Officer, the Chief
Financial Officer and the General Counsel. Meetings are
held as required (rather than having standing scheduled
meetings) to ensure that the Company’s disclosure
obligations are met in an accurate and timely manner.
CODE OF ETHICS
Freightways expects its Directors and employees to
maintain high ethical standards that are consistent
with Freightways’ core values, business objectives and
legal and policy obligations. A formal Code of Ethics has
been adopted by the Board and can be found at https://
www.freightways.co.nz/about/corporate-governance/.
Freightways’ people are expected to continue to lead
according to this Code. New and existing employees with
access to the Freightways online learning management
system (LMS) completed training on the Code of
Ethics in FY25. Limited numbers of existing employees
without LMS access such as depot staff (non-connected
staff) completed an in-person version of the training.
Freightways intends that remaining existing non-
connected staff will complete in-person training on the
Code in FY26 and that employees who join Freightways
in or after FY26 will be trained appropriately. Employees
will then subsequently be trained as required by the
Code from time to time. The Code deals specifically with
conflicts of interest, proper use of information, proper
use of assets and property, conduct and compliance
with applicable laws, regulations, rules and policies
and the other matters set out in recommendation
1.1 of the NZX Corporate Governance Code.
Breaches of the Code of Ethics are required to be
notified in accordance with the Company's Protected
Disclosures (Whistleblower) Policy or via other
channels made available from time to time.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
118Freightways Annual Report 2025
TREASURY POLICY
Exposure to foreign exchange and interest rate
risks is managed in accordance with the Group’s
Treasury Policy that sets limits of management
authority. Derivative financial instruments are
used by the Group to manage its business risks;
they are not used for speculative purposes.
REPORTING AND DISCLOSURE
The Company is committed to promoting investor
confidence by providing timely, accurate and full
disclosure of information in accordance with the NZX
Listing Rules and ASX Listing Rules applicable to the
Company as a foreign-exempt entity. The Company has
appointed its Chief Financial Officer as its Disclosure
Officer. The Disclosure Officer is responsible for
monitoring Freightways’ business to ensure it complies
with its disclosure obligations. The Disclosure Officer
has access to all necessary information provided by
the direct reports of Freightways’ Chief Executive
Officer in respect of their areas of responsibility. The
Disclosure Officer will regularly request certification
from the Chief Executive Officer’s direct reports that
all reasonable enquiries have been made to ensure all
relevant material information has been disclosed to
the Disclosure Officer. The Company’s Disclosure &
Communications Policy can be found at https://www.
freightways.co.nz/about/corporate-governance/.
Copies of other key governance documents, including
the Code of Ethics, Securities Trading Policy and
Guidelines, Board and Committee Charters, Diversity
and Inclusion Policy and Remuneration Policy, and are
all available on the Company’s website at https://www.
freightways.co.nz/about/corporate-governance/.
Copies of the Company’s Annual Report from prior
years can be found at https://www.freightways.
co.nz/investor-relations/annual-reports/.
In accordance with the Financial Sector (Climate-
related Disclosures and Other Matters) Amendment
Act 2021, the Company will be required to meet
climate-related disclosure obligations set out in the
External Reporting Board’s reporting standards in
respect of its financial reporting period commencing
on 1 July 2024. The Company will release this report
not later than Monday 22 September 2025 and
once released it will be available on the Company’s
website at https://www.freightways.co.nz/about-
us/sustainability and https://www.freightways.
co.nz/investor-relations/annual-reports/
The Notice of Meeting for the FY24 ASM was circulated
13 working days ahead of the ASM which meets the
applicable legal requirements. Freightways endeavours
to meet the best practice recommendation of circulating
the notice at least 20 working days in advance
(Recommendation 8.5 of the NZX Governance Code),
but this year did not achieve that given the meeting
was being held earlier than is typical by over a week.
RISK MANAGEMENT
The Company operates in an environment that
contains a number of operational and strategic risks.
It actively manages risk to ensure it operates a safe
workplace and is able to sustain the achievement of its
business objectives. Risk management techniques and
capability assist managers to focus on uncertainties
and vulnerabilities associated with the future, thereby
improving the likelihood of meeting business objectives.
PROTECTED DISCLOSURES (WHISTLEBLOWER)
The Company is committed to encouraging,
supporting and respecting open and honest
accountable work practices. The Company believes
all employees have a responsibility to eliminate
serious wrongdoing in the workplace and has
adopted a formal whistleblowing policy that provides
employees with access to a confidential third-party
agency. The Company’s Protected Disclosures
(Whistleblower) Policy can be found at https://www.
freightways.co.nz/about/corporate-governance/.
DELEGATION OF AUTHORITY
The Board delegates its authority where appropriate to
the Chief Executive Officer for the day-to-day affairs of
Freightways. Formal policies and procedures exist that
detail the parameters that the Chief Executive Officer
and in turn his direct reports are able to operate within.
SHARE TRADING BY DIRECTORS AND MANAGEMENT
The Board has adopted a policy that ensures compliance
with applicable securities trading laws. This policy
requires prior consent by the Chief Financial Officer
and General Counsel in relation to any trading by
executive management, and in the case of Directors
of the Company and its subsidiaries, prior consent
by the Chairman of the Board, Chief Financial Officer
and General Counsel. Any trading by the Chairman
of the Board requires prior consent by the Chair of
the Audit & Risk Committee, Chief Financial Officer
and General Counsel. The Company’s Securities
Trading Policy can be found at https://www.
freightways.co.nz/about/corporate-governance/.
OVERVIEWPERFORMANCEFINANCIAL REPORTADDITIONAL DISCLOSURES
119Freightways Annual Report 2025
The management of risk is a core management
responsibility. All managers and employees are
accountable to employ risk management processes
within their area of control to aid in the achievement
of business objectives. A process to ensure risk has
been adequately identified, considered and can
be managed, is evident in all key decision-making
processes. The Chief Executive Officer, Chief Financial
Officer and subsidiary management ensure that risks
to the business are identified, evaluated and, where
necessary, reported to the Board, that effective
responses and control activities are developed and
that appropriate monitoring and timely re-evaluation
is conducted. The Company reports externally on key
risks which it considers are relevant to shareholders
and other external stakeholders, including climate
related risks and health and safety risks, but does
not report generally on all material risks which may
apply to the Group. All risks to the Group are included
within a detailed internal risk reporting regime
where risks relevant to specific business units are
identified and mitigating actions are recorded.
The Board and its Audit & Risk Committee are
responsible for setting policy, assessing and monitoring
strategic risks and ensuring management maintains
an effective risk management framework.
The Company draws on external expertise where
required to perform internal audit on areas assessed
to be highest risk for the business and these areas
are reviewed on a regular basis, including IT project
management, payroll processing and managing business
continuity. The internal audit function reports to the
Audit & Risk Committee. The internal audit function
and external assurance personnel have unfettered
access to the Board in undertaking their activities.
The Company’s Risk Management Policy can be
found at https://www.freightways.co.nz/about/
corporate-governance/.
DONATIONS
In accordance with section 211(1)(h) of the Companies
Act 1993, the Freightways Group made donations
totalling $0.2 million during the year. No political
contributions were made during the year.
HEALTH, SAFETY & WELLBEING RISKS
Under the oversight of the Board and its People &
Safety Committee, the Company’s management
team and Health & Safety Committee (comprised
of representatives from each business and led by
the General Manager of Safety) are responsible for
managing the Company’s health, safety and wellbeing
risks. The Board monitor, support and complete their
own due diligence on the health, safety and wellbeing
practices of the Company. Health, safety and wellbeing
is a standing Board agenda item that is discussed at
all scheduled Board meetings, including reporting
on key critical risk incidents and near misses, TRIFR
and LTIFR metrics. The People & Safety Committee
is responsible for undertaking detailed reviews of
the Company’s Health & Safety standards and its
adherence to them in practice. The General Manager
of Safety is responsible for providing reporting on
Health & Safety risks to the Board and detailed
information to the People & Safety Committee to
enable the Committee to undertake its reviews.
The Company is committed to the prevention of
accidents and injuries and no task is regarded to be
so important that it may be done in an unsafe manner.
The Company has developed and maintains a Health
& Safety Manual that details procedures required of
managers, employees and contractors to maintain a
healthy and safe working environment for parts of its
New Zealand express package businesses.
Annual external assessments are undertaken by the
Accident Compensation Corporation (ACC) in relation to
the Company’s New Zealand businesses that are part of
the Accredited Employers Programme.
To support employee wellbeing all staff have access
to the Employee Assistance Programme which is an
external professional counselling helpline.
Manual handling injuries are the most common
work-related injury occurring within the Company’s
businesses. In FY25 2,786 manual handling training
sessions were conducted across the Company.
TAKEOVER RESPONSE PLAN
The Board has a Takeover Response Plan to assist
the Directors and management with the response to
unexpected takeover activity. The Plan summarises
key aspects of takeover preparation, and sets out,
governance, conflict and communications protocols
for takeover response. This Plan provides that in the
event of a takeover offer, the Board would establish an
Independent Takeover Response committee to manage
its takeover response obligations.
120Freightways Annual Report 2025
FREIGHTWAYS GROUP LIMITED AND ITS BRANDS’
Directory
MESSENGER SERVICES
LIMITED
32 Botha Road
Penrose
DX EX10911
Auckland
Telephone: +64 9 526 3680
www.sub60.co.nz
www.kiwiexpress.co.nz
www.stuck.co.nz
www.securityexpress.co.nz
NEW ZEALAND
COURIERS LIMITED
32 Botha Road
Penrose
DX CX10119
Auckland
Telephone: +64 9 571 9600
www.nzcouriers.co.nz
POST HASTE LIMITED
32 Botha Road
Penrose
DX EX10978
Auckland
Telephone: +64 9 579 5650
www.posthaste.co.nz
www.passtheparcel.co.nz
CASTLE PARCELS
LIMITED
163 Station Road
Penrose
DX CX10245
Auckland
Telephone: +64 9 525 5999
www.castleparcels.co.nz
NOW COURIERS
LIMITED
161 Station Road
Penrose
Auckland
Telephone: +64 9 526 9170
www.nowcouriers.co.nz
NEW ZEALAND DOCUMENT
EXCHANGE LIMITED
20 Fairfax Avenue
Penrose
DX CR59901
Auckland
Telephone: +64 9 526 3150
www.dataprint.co.nz
THE INFORMATION
MANAGEMENT GROUP
(NZ) LIMITED
33 Botha Road
Penrose
DX EX10975
Auckland
Telephone: +64 9 580 4360
www.timg.co.nz
FIELDAIR HOLDINGS
LIMITED
Palmerston North
International Airport
DX PX10029
Palmerston North
Telephone: +64 6 357 1149
www.fieldair.co.nz
BIG CHILL
DISTRIBUTION LIMITED
28 Pukekiwiriki Place
Highbrook, Auckland
Telephone: +64 9 272 7440
www.bigchill.co.nz
www.producepronto.co.nz
SHRED-X PTY LIMITED
PO Box 1184
Oxenford
Queensland 4210
Australia
Telephone: +61 1 300 747 339
www.shred-x.com.au
www.med-xsolutions.com.au
ALLIED EXPRESS
TRANSPORT PTY LIMITED
3 Murray Jones Drive
Bankstown Aerodrome
New South Wales 2200
Australia
Telephone: +61 13 13 73
www.alliedexpress.com.au
THE INFORMATION
MANAGEMENT GROUP
PTY LIMITED
PO Box 21
Enfield
New South Wales 2136
Australia
Telephone: +61 2 9882 0600
www.timg.com
www.filesaver.com.au
www.litsupport.com.au
FOR INQUIRIES IN RELATION
TO FREIGHTWAYS’ SERVICES
AND PRODUCTS CONTACT THE
OFFICES LISTED ABOVE OR REFER
TO FREIGHTWAYS’ WEBSITE AT:
WWW.FREIGHTWAYS.CO.NZ
121Freightways Annual Report 2025
Company particulars
BOARD OF DIRECTORS
Mark Cairns (Chair)
Grant Devonport
(appointed 25 November 2024)
Abby Foote
David Gibson
Peter Kean
Fiona Oliver
Mark Rushworth
(retired 23 October 2024)
REGISTERED OFFICE
32 Botha Road
Penrose
DX CX10120
Auckland
Telephone: (09) 571 9670
www.freightways.co.nz
AUDITORS
PricewaterhouseCoopers
15 Customs Street West
Auckland
SHARE REGISTRAR
Computershare Investor Services Limited
159 Hurstmere Road
Takapuna
North Shore City 0622
DX CX10247
STOCK EXCHANGE
The fully paid ordinary shares of
Freightways Group Limited are listed on
the New Zealand Stock Exchange (NZX)
and Australian Securities Exchange (ASX).
WWW.FREIGHTWAYS.CO.NZ
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.