NZ multimodal giant also references huge facilities blitz here
Australia’s contribution to NZ listed firm Mainfreight’s bottom line continues to expand, its half-year results show.
It reports, for the six months ended September 30, an unaudited revenue $1.609 billion, up $108.39 million or 7.2 per cent on the prior corresponding period (pcp).
Its profit before tax sits at $102.26 million, up $19.42 million or 23.4 per cent on the pcp.
“This result reflects the strong improvement in performance in our Australian and New Zealand operations, supported by ongoing progress in our Asian business,” the company notes.
Mainfreight’s Australian contribution is recorded as A$403.21 million revenue, up A$42.79 million or 11.9 per cent, and profit before tax of A$30.56 million, up a huge AU$15.60 million, or 104.3 per cent.
This, Mainfreight notes, is “a very pleasing result from our Australian operations led by strong domestic transport performance”.
It puts its sales revenue and improving net margins down to ongoing market share growth and enhanced network efficiency.
Further, three branches – Melbourne, Sydney and Tamworth – were opened in this half-year, with a further six planned.
However, it doesn’t outline the locations of these.
Australia remained a happy hunting ground for Mainfreight during the pandemic
Meanwhile, “warehousing growth continues, with utilisation at 90 per cent despite international supply chain congestion”.
“While profitability continues to improve in our Air & Ocean division, margins have been impacted as shipping and air freight rates increase”.
Expectations are high for further increases in freight volumes pre-Christmas, and as a consequence of Victoria reopening after 112 days of Covid-19 lockdown.
“A pleasing half-year result considering the slow start to the year through the Covid-19 lockdowns in the various countries and regions,” the company comments on its global operations.
“We are extremely proud of our people, across our global network, who have worked tirelessly to produce these results, navigating the hurdles and fallout from the Covid-19 pandemic and finding solutions for our customers.
“We expect to see ongoing improvement across all of our regions as we continue to grow market share and adjust our businesses to the fluctuating economic climate.
“In Australasia, the normal pre-Christmas volume increase is expected, and is likely to be level or ahead of trading experienced last year.”