HOUSTON - Freight Technologies Inc. (NASDAQ:FRGT), known as Fr8Tech, announced the renewal of its logistics services contract with Kimberly-Clark (NYSE:KMB) de México for an additional two years. The contract extension solidifies the ongoing relationship which began in 2022 and will continue to involve the transportation of products across Mexico. According to InvestingPro data, Fr8Tech generated revenue of $17.57M in the last twelve months, with analysts anticipating sales growth in the current year despite challenging market conditions.
Fr8Tech's Chief Operating Officer, Luisa Lopez, stated, "We're pleased to extend our services with Kimberly-Clark de México for another two years." She emphasized the quality of Fr8Tech's logistics solutions, including Fr8Fleet for dedicated capacity and Fr8App for over-the-road (OTR) spot services for domestic and US-MX cross-border shipments. The company faces operational challenges, with InvestingPro analysis showing negative gross profit margins and a weak overall financial health score.
CEO Javier Selgas remarked on the value and reliability of their logistics solutions, attributing the renewal to technological investments and service enhancements. He expressed confidence in delivering long-term value to customers and the company.
Fr8Tech specializes in technology-driven logistics management, offering a suite of products designed to optimize the supply chain process. These include the Fr8App platform for seamless OTR B2B cross-border shipping in the USMCA region, Fr8Now for less-than-truckload shipping, Fr8Fleet for dedicated capacity services, and Waavely for ocean freight booking and management.
The renewal of this contract with Kimberly-Clark de México indicates a vote of confidence in Fr8Tech's capabilities and is expected to further cement its position as a significant logistics provider in the Mexican region. The information for this article is based on a press release statement. InvestingPro subscribers have access to 12 additional ProTips about FRGT, including detailed insights on valuation metrics and growth potential.
In other recent news, Freight Technologies has secured a logistics services contract with a leading global toy brand, continuing their existing relationship. The company also reported a 6.6% increase in revenue for the first half of 2024, totaling $8.1 million, along with a 40% rise in gross profits year-over-year. Analysts from InvestingPro have forecasted a 140% revenue growth for Freight Technologies. Furthermore, the company's shareholders have approved key proposals, including the election of directors and the ratification of the independent auditor, Marcum LLP. However, the 2024 Annual General Meeting was adjourned due to a lack of quorum. Freight Technologies has also expanded its partnerships with Bayer (OTC:BAYRY) CropScience LP for truckload services and Amazon (NASDAQ:AMZN) Mexico for U.S.-Mexico cross-border shipping operations. These are the recent developments in the company.
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