Toll year-end profit up 14pc, revenue soars 153pc on M&A

AUSTRALIA's Toll Holdings annual net profit increased 14 per cent year on year to A$298.1 million (US$250.5 million) as Asian acquisitions cushioned the impact of the global downturn.

"This strong profit growth combined with a very strong balance sheet perfectly places the Toll Group for further M&A activity in the months and years ahead," said Toll Group managing director Paul Little, commenting on full financial year results, ending June 30.

Revenue rose on the acquisitions of BALtrans and Gluck to $907 million, up 153.4 per cent over the $358 million in sales the previous financial year.

Toll Asia hit revenue highs of $605 million, up 19.7 per cent year on year from $724 million helped by its high level of involvement in fast moving consumer goods market backed by contracts with Coca Cola in China, Nestle in Singapore and Indorama in Thailand.

Toll Global Forwarding (TGF) was the best performer in the group, but still experienced a second half slowdown.

"TGF was affected by the downturn in global forwarding volumes. After a solid first half, volumes in the second half were significantly down on 2008," said Mr Little, adding that electronics, automotive and industrial sectors were most affected.

The completion of a small, but strategic, air express acquisition in Singapore and Hong Kong to further enhance the Toll Global air express offering of Toll Priority were aided by acquiring the Singapore and Hong Kong operations of Deltec Asia, which allowed it to integrate closely with Toll Global Forwarding and its agent network in the region.

Additionally its investment in leading HK-based freight consolidator Cargo Services Far East (CSFE) remained a key plank in the TGF strategy. TGF and CSFE are looking at opportunities in Hong Kong and China particularly, to maximise current capabilities and improve efficiency.

"We are continuing to see real opportunities for acquisitions, which match our long term strategic vision. We see some very interesting future growth options both here in the region and around the world," Mr Little added in its results statement.

(Source: www.schednet.com)