Mainfreight revenues hit NZ$2 billion

Australian operations impact on an otherwise strong year

Mainfreight revenues hit NZ$2 billion
Mainfreight earned a record NZ$2.05 billion over the year ending March 31


New Zealand trucking corporation Mainfreight has reported a record NZ$2.05 billion ($A1.9 billion) in revenues across its global operations.

That fed into an earnings before interest, tax, dividends, and amortisation (underlying earnings) result of NZ$162.2 million (A$151 million).

At home, the company saw increases in revenues and profits across both its transport and logistics divisions.

Group managing director Don Braid says those gains were similar to the achievements built in the previous financial year.

"Our New Zealand transport operations gained a number of new customers, and increased the number of consignments transported through our network by 150,000," his report to shareholders states.

"This builds on similar levels of growth in the year prior."

Across the Tasman, a shaky economy and competitive market subdued Mainfreight’s ambitions in Australia for the financial year that ended on March 31.  

Revenues increased by seven per cent to A$490.65 million, while underlying earnings improved 5.8 per cent to A$37.2 4 million.

"Whilst these improvements may seem satisfactory, when compared to New Zealand’s level of growth and the relative size of the Australian market, we would have expected more," the commentary explains.

While profitable, Mainfreight’s US operations also filed below-expectation results.

The smaller European business achieved strong growth off a relatively low base. Total sales for the region rose by 3.6 per cent over the year to March 31, with underlying earnings up 33.5 per cent to €11.91 million (A$17 million).

"Whilst the European economy remains turbulent, our own improved performance is providing confidence for the future."

In Asia, Mainfreight had underlying earnings of US$4.99 million (A$6.5 million), up 41.6 per cent from what was also a low base.

Braid says the forward outlook also remains positive.

"A number of large multinationals can now be counted as loyal customers, and we are underway with attracting more," he says.

"Their relative logistics spend is considerably larger than we have experienced before in the smaller markets of New Zealand and Australia [and] the potential [they] bring to our global business is exciting."

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