- Digital economy boosts Goodman Long term trend towards online sales boosting warehousing and logistics business
- $615M operating profit, up 16%
- Operating earnings per security 33.1 cents, up 15%
On the back of a significant uptick in online sales and the digital economy, ASX-listed warehousing and logistics business Goodman Group (ASX: GMG) has announced strong half-yearly results.
A $614 million operating profit and more than $1 billion in statutory profit were the kind of results to hearten any CEO, the former having risen 16% on the same period of the year earlier.
‘Statutory accounting profit’ includes property valuations, derivative mark-to-markets and other non-cash or non-recurring movements.
Development work-in-progress has increased to $8.4 billion, and across their network of warehouses, office parks and logistics facilities occupancy was at 98%.
“The business is performing strongly. The permanent shift in utilisation and requirements from our customers, driven by the long term trends in the digital economy is supporting demand for our properties,” said a statement to the ASX.
The group has upgraded its earlier forecast operating profit to $1.2 billion, which would represent a 12% increase to the earnings per share in the financial year 2020.
The business has been resilient in spite of, and perhaps due to, the pandemic. Goodman’s global networking of warehousing and logistics have played a key role in providing essential delivery of products.
Global supply chains are under pressure, but an “enduring shift” to digital activity, allied to longer-term changes in consumer behaviour, has bolstered activity. Clients include Amazon, Deutsche Post (DHL) Maersk, BMW and Japan Post.
After Australia (28%), top countries and regions are Hong Kong (18%), Los Angeles (7%), Auckland (6%) and Shanghai (5%).
Shares in Goodman Group were up to $17.44 on the news, with a market capitalisation of just over A$30 billion.