Improved second-half trading by bellwether logistics company
Mainfreight underpinned a strong result with a record $89.6
million after-tax profit.
Mainfreight sales revenue was up 2.1% to $1.92 billion and
earnings before interest, tax, depreciation and amortisation
at a record $149.1 million, up 8.5% on the previous year.
Group managing director Don Braid said the overall financial
result, for the year to March, was ''satisfactory'', noting
the first two months of the current year's trading was a
''further improvement'' on a year ago.
''We're focused on developing all our offshore operations
into significant profit and revenue contributors for our
group,'' Mr Braid said.
Without giving specific guidance, Mr Braid said he was
''confident of bettering'' Mainfreight's financial
performance again, in the year ahead, by maintaining its
Mainfreight shares were up almost 10%, at $1.24, following
Craigs Investment partners broker Peter McIntyre said the
performance in all countries was ''exceptional'', with
second-half trading in particular ''absolutely stunning'' for
Mainfreight. Second-half revenue was up almost 3%, at $971.7
He highlighted a recovery in Europe, which in the past had
been a drag on Mainfreight and better profit margins were
While after-tax profit was up 36% to almost $90 million, a
$23 million increase, contributing to that was an abnormal
gain of $12.15 million, over an ongoing disputed settlement
with the seller of 2011 acquisition, Netherlands-based Wim
''After three years in Europe, Mainfreight are taking action
to right-size the business, closing down an unprofitable
operation in Belgium,'' Mr McIntyre said.
Mr Braid said Asian sales revenue was up 26.2%, to $US37.7
million ($NZ44.15 million), with all branches improving their
''As with our United States business, strengthening European
trade lanes into and out of Asia is of the utmost
importance,'' he said.
Continued Asia expansion included the opening of a 12th
branch, in Thailand, re-siting the Singapore branch to Changi
Airport, planned openings of second branches in Thailand and
Taiwan, plus researching opportunities to expand with
branches in Vietnam, Malaysia, the Philippines and India.