Courier company Mailpac Group Limited is close to executing its first inorganic growth move.
The company, which was formed in 2019 as a vehicle to acquire related companies Mailpac Services L.
Mailpac is looking at long-term solutions to freight lifting problems, as expenses increased in 2020 due to challenges in this area, the company’s executive chairman Khary Robinson has said.
The company, nevertheless made record revenues of $1.7 billion at year-end December 2020 and a net profit of $442.72 million.
This compares to three months net profit of $86.28 million in 2019 the period when operations of a restructured company began.
Profit, it was noted, was 39.6 per cent ahead of IPO projections. The company’s IPO prospectus in December 2019 projected profits of $317.0 million in 2020.
Robinson said that due to the significant spike in package volume, gross profit was adversely impacted by massive spending on charter flights and other freight solutions to offset the lack of capacity at traditional airlift channels.