Mainfreight's dividend has been boosted after the global freight company posted record before and after tax results on an almost 40% increase in revenue, during the six months to September.
Revenue was up 38.4% at $982 million with earnings before interest, tax, deprecation and amortisation (Ebitda) up a record 83% to $64.347 million and after-tax profit up 76% at $29.08 million; including one-off costs of $500,000 accounted for.
Mainfreight increased its interim dividend 3c to 12c. After the announcement yesterday, its shares were down slightly at $10.15; but had gained 43c earlier in the week.
Group managing-director Don Braid said in a statement to markets the second quarter had been a repeat of the first quarter results, with sales growth and enhanced profitability across most divisions in the group - the result being "satisfactory and in line with our expectations".
"In particular, we achieved strong profit growth in our Australian domestic operations. This trend of group-wide improvement shows no sign of abating as we head into our third quarter with its traditional seasonal peaks," Mr Braid said.
Craigs Investment Partners broker Peter McIntyre said the "satisfactory" result was in line with forecasts.
The New Zealand and Australian domestic divisions were both strong, margins in the US were improving, while Europe was in line with expectations, but marginally softer than Craigs' estimates of the seasonal impacts, he said.
The European company Wim Bosman, bought earlier in the year, delivered 124.07 million ($NZ215.3 million) in revenue with Ebitda of 10.59 million ($NZ18.3 million).
Forsyth Barr broker Suzanne Kinnaird said it was a "solid start" for Wim Bosman's contribution to Mainfreight, which was acquired in April for up to $224 million, with 90% of its revenue generated in the Netherlands and Belgium.
However, it was the improved earnings from Australia, New Zealand and Asian operations which were the highlight from the result, she said.
"This [after-tax profit increase] is impressive, given the ongoing weak economic conditions both locally and globally and points to a very strong profit outlook," Ms Kinnaird said.
Mr McIntyre noted Mainfreight had signalled a ramp-up in capital expenditure during the next two years, with building projects to start in New Zealand, Australia, Romania and Belgium.
Mr Braid said because Mainfreight had a relatively small market share of the world's logistics industry, that provided substantial opportunity, with the company developing a global network and diversified products which would provide a buffer against any expected downturn.
