It hoped to return to “modest” organic growth in the second half, assisted partially by drops in the Official Cash Rate (OCR), he said.

Freight volumes were expected to remain stable despite the difficult economic conditions.

Troughear said the company’s focus was on restoring margins in its divisions in FY25 and FY26 as modest growth occurred, with progress already made in the first quarter.

Its investments in Big Chill at the Ruakura Superhub in Hamilton, in Australia at MDX in Victoria, and Allied Express systems in Victoria and New South Wales, would all yield benefits in FY25.

Operating profit before interest, tax and amortisation rose 8.5% to $39.6m in Q1.

The company, which next month marks its 60th year, had “yet to see any green shoots in the New Zealand economy but things have not worsened for us”.

Labour costs in Q1 were up 3.5% across the group. Corporate costs were also higher, mostly due to one-offs and climate reporting disclosure consultancy, Troughear said.

Chairman Mark Cairns said many sectors of the economy had been significantly impacted by the difficult economic climate but diversification of Freightways’ business had proven its worth, allowing the group to achieve solid revenue growth in FY24.

“Australia has fared slightly better than New Zealand and it has been pleasing to see the benefits of our growing geographical diversification, where 35% of our revenue is now generated in Australia.”

Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.