Profits soar for Mainfreight
Mainfreight has announced its half-year net profit rose 66 per cent to $217 million for the six months to September, when compared with the same period a year ago.
The latest result for the logistics and transport group follows a record 89 per cent lift in its last annual profits to $355.4m.
Group revenue was $3 billion in the first half of the 2023 year, up 32 per cent on the same time last year. While earnings before finance costs, tax, depreciation, and amortisation was $422.5m, up from $286m in the prior corresponding period.
Don Braid, managing director, says the result was pleasing, particularly in light of supply chain congestion and ongoing lockdown disruptions in most of Mainfreight's markets.
He attributes the strong result to contributions from all the company’s operations in 26 countries in five regions, rather than a single business standout achievement.
The company’s revenue in New Zealand alone was up 29 per cent to $644.6m with consistent trading across its transport, warehousing, and air and ocean divisions.
Braid, pictured, adds good trading has continued into October and November, with revenue up two per cent and profit before tax up 11 per cent. He expects this to continue well into December.
He says demand for warehousing remains high and new facilities due to open next year in Hamilton, Tauranga and Auckland will provide relief for over-utilised warehouses.
Australia and the Americas provided the largest chunks of Mainfreight’s half-year revenue, at $762m (A$697m) and $956.6m (US$562.9m) respectively. Revenue soared 33 per cent in Australia and 28 per cent in the Americas.
Revenue was up in Europe by 26 per cent to $556.8m (€327m) and in Asia it fell nine per cent to $170.7m (US$100.5m), due to a decline in ocean freight rates.
The company will pay an interim dividend of 85 cents per share in December, up from 55c in the prior corresponding period.
Net capital expenditure in the six months to September was $178m, and it expects to spend $360m in the full year, including spend on land and buildings across New Zealand, Australia, and the Americas.
Mainfreight says it is confident of trading conditions for the remainder of the financial year, although it was cognisant of economic headwinds and declining sea freight rates.
