Why the Wiseway (ASX:WWG) share price is storming 50% higher

The Wiseway (ASX:WWG) share price is storming higher today, up more than 50% in afternoon trading. We take a look at the company's results.

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Wiseway Group Ltd (ASX: WWG) shares are storming higher today following the company's release of its half-year financial results for the period ending 31 December (H1 FY21). At the time of writing, the Wiseway share price is trading 52.38% higher at 32 cents.

Let's take a look at what the integrated logistics provider reported.

What did Wiseway report?

The Wiseway share price is rocketing after the company reported a net profit after tax (NPAT) of $3.4 million, compared to a $4.9 million NPAT loss in H1 FY20.

Gross profit of $18.1 million represented an increase of 60% on the $11.3 million reported in the previous corresponding half.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) leapt to $6.5 million from $100,000 in the prior corresponding period.

Revenue increased by 54% year on year to $69.7 million. Wiseway reported inbound and outbound airfreight increased its trading revenue by 25% to $45.4 million, up from $36.2 million in H1 FY20. Its new business divisions revenue leapt 182% to $24.0 million, up from $8.5 million.

Commenting on the half-year results, Wiseway CEO Roger Tong said:

The results are a turning point for Wiseway which, since the IPO, has successfully implemented its strategy of diversifying our business and our income streams. At IPO, only 5% of our trading revenue was from new business divisions. These divisions are now responsible for 34% of our trading revenue…

This is a direct result of our FY20 investment in infrastructure and in our operating platform including bonded warehouses, accreditation for perishable operations and obtaining operational licences across Australia and New Zealand.

While the company has had to adjust operations to allow for the pandemic, Tong said that COVID-19 has seen its Australian and Asian customers approach Wiseway to help find solutions to the challenges of importing and exporting between the two continents.

Looking ahead, Tong said:

To accommodate future growth, we have opened a Business Support Office in Guangzhou, China. This new office is in addition to our Shanghai office. After the end of the reporting period, we identified Los Angeles in the United States as a suitable location for the Wiseway's next phase of expansion and establishing a presence in the United States…

Wiseway share price snapshot

With today's intraday gains factored in, the Wiseway share price is up by around 118% over the past 12 months. That compares to a 0.4% loss on the All Ordinaries Index (ASX: XAO).

Year to date, the Wiseway share price has gained around 53%.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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