Mainfreight’s profits climbing

Mainfreight says lockdown restrictions across New Zealand have seen a lower-than-expected decrease in revenues and the group’s weekly profitability remains ahead of the same time a year ago.

In a trading update to the NZX, the logistics company says it is satisfied with results to date as it approaches its half-year mark at the end of September.

It notes transport revenues have dropped by about 30 per cent post-lockdown, which is less than was expected. In contrast, activity in warehousing and its air and ocean division continues unabated.

Mainfreight says it expects activity will increase for all three sectors of the business following the move to alert level three for all parts of the country except the Auckland region.

The update reveals revenue and profits for the company from April 1 to July 31, 2021, were ahead of the previous year.

New Zealand revenues were 32 per cent higher and tracking at $479.9 million, with pre-tax profits also up 37 per cent over last year to $37.3m, reports the NBR.

Overall, the global company’s revenue for the period has increased by 43 per cent to $2.2 billion, while profits before tax climbed 83 per cent to hit $142m

By segment, transportation revenues grew 22 per cent to $887.6m, warehousing is up 24 per cent to $225.3m and air and ocean has risen 72 per cent to $1.1b, despite the disruption to global shipping in particular.

Trading across all regions – New Zealand, Australia, the Americas, Europe and Asia – is ahead of last year. 

Don Braid, group managing director, says while congestion in global supply chains remains a feature “our people continue to focus on solutions to provide space for our customers.”

Mainfreight is due to release its half-year results to the end of September on November 11.