How Did MOVE Logistics Achieve FY25 Targets Amid Economic Headwinds?

Transformation Delivers Tangible Results

MOVE Logistics Group Limited (ASX/NZX – MOV) has reported that it met its financial targets for the fiscal year ended June 30, 2025, marking a notable milestone in its ongoing transformation journey. Despite operating in a challenging New Zealand economic environment characterized by subdued demand and pricing pressures, MOVE has demonstrated resilience by maintaining sales revenue and significantly improving profitability metrics.

The company’s Accelerate transformation programme, initiated to streamline operations and reduce costs, has begun to bear fruit. MOVE achieved a substantial reduction in operating expenses in the second half of FY25, building on earlier savings, while also improving gross margins. These gains underscore the effectiveness of the cost-out and efficiency initiatives implemented across the business.

Segment Performance Highlights

Three of MOVE’s four core business units posted improved normalized earnings, with the Freight and Fuel division standing out due to increasing revenue and margin expansion. This turnaround signals a successful recalibration of this segment’s operations and market approach.

The Specialist division continues to perform strongly, supported by a robust multi-year project pipeline, while the International business maintains steady results, bolstered by ongoing ocean shipping pilots and renewed contracts with key customers.

Conversely, the Warehousing segment has faced significant headwinds from excess market capacity and intensified competition, leading to pricing pressures. MOVE is addressing these challenges through leadership changes and a strategic reset focused on customer partnerships and operational excellence, aiming to drive growth starting in FY26.

Operational Consolidation and Future Outlook

As part of its network optimisation, MOVE is relocating to a modern freight branch in Dunedin and consolidating warehouse operations by exiting two under-utilised sites. These moves are expected to enhance financial performance in the coming year.

Looking ahead to FY26, MOVE plans to shift from cost reduction to value creation, leveraging the foundations laid by the Accelerate programme. The company anticipates realizing the full benefits of its cost-out initiatives and returning to positive normalized earnings before tax. While economic recovery timing remains uncertain, MOVE’s streamlined cost base, diversified service offerings, and strong customer relationships position it well for future growth.

Investors can expect the release of audited FY25 results and an investor call scheduled for August 29, 2025, which will provide further clarity on the company’s financial health and strategic direction.