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Date : 25/08/2021

WiseTech Global Ltd Share Price soars On ASX After Impressive Performance in FY21

Wisetech Global Ltd. engages in the provision of software solutions to the logistics industry globally. The firm develops, sells, and implements software solutions that enable logistics service providers to facilitate the movement and storage of goods and information, domestically and internationally. Its software solutions include CargoWise One and Borderwise.

Why is WiseTech Global Share Price flying high today on the ASX?

The WTC share price surged over 50% today and finally settled at a 28% gain on the back of Wisetech Global beating all market estimates in their FY21 financial performance. The highlights of the announcement are:

  • FY21 Total Revenue of $507.5 million, up 18% (24% ex FX) on FY20 – at top end of guidance range
  • CargoWise revenue of $331.6 million, up 26% (31% ex FX) on FY20, reflecting growth in usage
  • Market penetration gaining pace with six new global rollouts secured in FY21 and the sign up of FedEx post 30 June 2021
  • EBITDA of $206.7 million up 63% on FY20, exceeded guidance
  • EBITDA Margin of 41% up 11 percentage points (pp) on FY20, reflecting enhanced operating leverage and cost reductions
  • Underlying NPAT2 of $105.8 million, up 101% on FY20
  • Robust free cash flow of $139.2 million, up 149% on FY20

WiseTech Founder and CEO, Richard White said, “Our strong CargoWise revenue growth in FY21 demonstrates industry recognition of our customer value proposition. We have continued to gain momentum in our market penetration with six new CargoWise global rollouts by large global freight forwarders secured in FY21, and the signing of FedEx post 30 June 2021. Importantly, we have a strong pipeline of potential new global customers, which we are actively pursuing. Our top line revenue growth, coupled with our ability to implement organisation-wide efficiencies and extract acquisition synergies, has enabled us to achieve a marked step change in operating leverage that is evident in our strong FY21 financial performance.”

The WTC Board has declared a fully franked final ordinary dividend of 3.85 cents per share (cps) representing a 141% increase on the FY20 final dividend. The final dividend is payable on 8 October 2021 to shareholders registered as at 13 September 2021. Coupled with the FY21 interim dividend of 2.70 cps, the total FY21 dividend equates to 6.55 cps and represents a payout ratio of 20% of Underlying NPAT.

WTC also provided guidance on the basis that market conditions do not materially change, noting that changes in industrial production and/or global trade (both favourable and unfavourable) may impact guidance. The company anticipates FY22 revenue growth of 18% to 25% (representing revenue of $600 million – $635 million) and EBITDA growth of 26% to 38% (representing $260 million – $285 million).

WTC shares were then put on a trading halt after the surge and the WTC stock price finally settled $46.50 a share – representing a 28% surge in WTC shares just today.

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