Knudsen and Stokes highlight progress on recent challenges
Japan Post looks at life after Global Express
Toll Global Express returns to haunt Japan Post (JP) one last time as the parent company releases full year results ending March 31, 2021.
JP admits to ditching Global Express as it continued to bleed financially, to the tune of $ 78 million last year in Japan, from the toll portfolio which also includes global logistics and global transfer.
Positively for JP, Toll Group’s bottom line sees revenue and earnings before interest and taxes (EBIT) increase to $ 9.84 billion and $ 46 million, respectively.
Operating profit edged up to the $ 10 billion mark, increasing A $ 1.28 billion (or 14.9% year-on-year), “mainly due to the continued Large-scale management of Covid-19 prevention supplies by the Global Logistics Asia division up to the fourth quarter of the fiscal year, ”explains JP.
While operating and other expenses increased in line with operating profit, personnel costs decreased, resulting in a return to profit, after a loss of AUD 117 million in the previous corresponding period.
Global Logistics’ profitable business recorded EBIT of $ 168 million, well above A $ 94 million in FY20, but below A $ 210 million in FY19 .
Global Forwarding was also in the black of A $ 4 million, having previously recorded a deficit of A $ 30 million and $ 8 million in the past two fiscal years.
Corporate / other deficits also decreased from $ 80 million in FY20 and $ 56 million in FY19 to $ 48 million in FY21.
Meanwhile, Global Express’s deficit of A $ 78 million comes on top of the A $ 100 million and A $ 18 million lost respectively over the previous two years, leaving its new owners Allegro and CEO Christine. Holgate a lot to do.
How Allegro rushed to Holgate to run Global Express, here
Acknowledging to have “been operating at a persistent loss”, JP discloses a “loss on sale of Toll’s Global Express business” of 67.4 billion yen, or approximately 793 million Australian dollars, having previously estimated the price of sale at A $ 7.8 million.
“In the international logistics sector, we have been continuously engaged in the transformation plan of Toll Holdings Limited,” explains JP.
“We also continued to develop our B2B activities mainly through our contract logistics, using JP Toll Logistics.
“Trade results have remained poor, however, with a challenging external business environment due to the downturn in the Australian economy, trade frictions between the United States and China and the spread of Covid-19, made worse by the effect of cyber attacks, etc.
“The Japan Post Group considered various strategic business options to enhance Toll’s growth, but ultimately decided that the best option would be to sell the global express business, which has seen continued deterioration in business performance.”
On April 21, 2021, JP completed the “transfer of Toll’s global express business to Australian Parcels Group Pty Ltd, Australian Parcels Pty Ltd, Tasmania Maritime Pty Ltd and NZ Logistics Holdings Limited, subsidiaries of Allegro Funds Pty Ltd.”
Toll Group chief executive Thomas Knudsen and Global Logistics chairman Peter Stokes took to social media to comment optimistically on the company’s results.
Knudsen states that “The past 12 months have truly been a year like no other; demanding resilience and agility at every turn in response to the rapidly changing environment induced by Covid-19.”
“We had zero fatalities and improved our overall safety performance, while protecting our employees from the virus with tight controls across all of our global operations.
“Despite a very difficult operating environment, Toll made solid progress on the financial results of the last 12 months with strong improvements in both revenues and profits.
“It is clear that we are on the right track for growth.
“This result would not be possible without the dedication of our staff and the support of our customers and partners. I would like to thank my colleagues at Toll for delivering such a great performance.”
In a similar theme, Stokes discusses the virtues of his division on the finance and security fronts.
“After a year of headwinds, Toll Global Logistics delivered a strong performance, posting EBIT of $ 168 million for fiscal 2021, almost double the previous year,” he said.
“Above all, our safety performance continues to improve and the entire team has mobilized to stay safe during the pandemic.
“Fortunately, Toll has not had any workplace transmissions in all of our operations around the world.
“Our results today mark a turning point.
“While we still have work to do, I am proud of the team and what we have been able to accomplish in the face of so many challenges.
“We strive to continue to deliver to our customers, to execute our strategy and to build a sustainable business for the future.”