Toll Group reports stronger sales and profits

In its interim report this week to the Australian Stock Exchange for the six months period ending December 31, 2012, Toll Group announced that sales revenue had increased 2.5 per cent on the same time last year to $4.5 billion, and net profit after tax before nonrecurring items increased 7.6 per cent to $174 million.

Toll Group Managing Director Brian Kruger said Toll has again shown the benefits of its strong and diversified business. “This result has primarily been achieved through the work we’ve done to win contracts, grow revenue and retain customers, while at the same time reduce costs and improve productivity,” he said.

“We recognise that all parts of the business will need to retain a strong focus on productivity improvements and increased efficiency to ensure we maintain our leading position in what remains a highly competitive marketplace.

“I’m pleased that we’re starting to see the benefit of the recent investments we’ve made in fleet, IT and property both in Australia and in our developing international businesses, and we will continue to target our capital expenditure to grow our returns,” Mr Kruger said

Looking ahead, Mr Kruger said he was not assuming the external economic environment would get any better in the short term, so Toll’s focus will be on continuing to win business and improve the things it can control. “Overall, the company expects its results for the second half of the year to be better than for the same period last year,” Mr Kruger said.

Included in the results is a $52 million after tax gain on the sale of Toll’s vehicle distribution business and Toll Refrigerated’s line-haul and warehousing business. Strong returns in a number of Toll’s core Australian businesses also contributed to the improved result.

Toll’s Customised Solutions logistics division increased revenue and earnings as a result of new business wins, including Rubbermaid, Adidas, RCG and Unilever Ice Cream, along with growth from existing customers – Nike, Cadbury and Kmart. New facilities established during the six months period included Optus in Yennora and IKEA in Greystanes, NSW and a state of the art automation facility for Adidas in Melbourne.

The Toll Liquids business benefited from increased revenue from new customer wins including Shell and 7-Eleven, and organic growth from existing contracts such as Woolworths and BOC.

Toll Group’s  transport and logistics operations  employ more than 45,000 people across some 1,200 locations in more than 50 countries.

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