Lindsay Transport surpasses half billion in revenue

Lindsay Transport PBS approved Kenworth prime mover.

Lindsay Transport is now the largest refrigerated transport company in Australia.

Operating revenue increased by 29.5 per cent to $513.28 million according to its 2023 annual financial statement amid record revenues reported by the wider Lindsay Australia group.

The positive growth comes after unprecedented demand in road and rail services, further accelerated by industry consolidation.

Surges in demand, according to Lindsay Australia, followed the public exit of Scott’s Refrigerated Logistics, a key competitor of its transport division.

The transport business had already laid strong foundations to meet strategic goals with sizeable investments in road assets, along with improvements to its underlying core business.

In a statement Lindsay Australia said the transport unit had enjoyed continued growth supported by expenditure totalling $40 million on new road and rail equipment for the reporting period.

This investment included the rollout of larger road combinations, which will continue to drive utilisation and support positive consumer demand for fresh, chilled and frozen products.

Lindsay also acquired a large parcel of used assets from Scott’s Refrigerated Logistics, which ceased operations in the second half of the year, for an additional $23 million.

This acquisition included 44 prime movers and 350 used containers and other rail assets which have empowered the company to meet its customers’ ongoing logistical challenges and needs.

“Ongoing investment in the Transport division remains a key focus for the Group to ensure we maintain our first-class, safe and reliable fleet and can continue to perform our role as an essential service provider and a key player in securing food security for Australia,” said Lindsay Australia in a statement.

Lindsay Transport, moreover, would continue to renew its road fleet in line with a mobile asset replacement plan, regarded inhouse as another key pillar to its ongoing success in the segment.

“This plan will ensure the fleet remains first in class while delivering efficiency and safety across Lindsay Australia’s network,” said the company.

“In FY2024, the Group will continue to invest in growth in the road fleet, acquiring new larger trailer combinations to improve operational performance. FY2024 will see a renewal program commence after obtaining the used containers in FY2023.”

High fuel levy recoveries due to increased diesel prices and the execution of rail expansion strategy also heavily contributed to the resultant $72.35 million in profit before tax, an increase of 76.3 per cent on the prior period.

“The record FY23 performance was an outstanding result for the Lindsay business,” said Clay McDonald, Lindsay Australia CEO.

“The Transport division led the way with a significant uplift in demand for Lindsay’s road, rail and depot handling services,” he said.

McDonald paid tribute to the exceptional agility, capability and customer service demonstrated by the Lindsay Australia team to handle significant increases in demand.

Strategic capital investments in recent years, according to Lindsay Australia, were likely to effectively meet some of the excess demand requirements of the market.

The company in the annual 2023 financial report said it continued to manage rising cost challenges due to inflation and a competitive labour market.

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