Australia helps Mainfreight annual records tumble


NZ international firm sees net profit top NZ$100 million (A$95.5 million) for first time

Australia helps Mainfreight annual records tumble
Mainfreight has posted terrific annual result figures

 

Mainfreight has seen its annual results hit record territory, with Australia, New Zealand and European operations offsetting weaker US performance.

The New Zealand-headquartered international transport and logistics company puts the Australian performance down in no small part to five years of facility investments and a focus on service quality.

Sales revenues for Australia increased 6.3 per cent over the previous year to AU$535.00 million. The EBITDA improvement was also satisfying, up 23.7 per cent to A$42.32 million.

"Concerted efforts to drive sales growth and to secure better control of costs during the latter part of the financial year, achieved improvements which will carry forward into the 2018 financial year," the company reports.

"Our Transport facilities and road line-hauls are well utilised, our Logistics’ warehouses are full, and our Air & Ocean business is gaining in prominence.

"The targeted focus on improving our standards and delivering a far better customer experience is paying dividends, with good customer gains. These continue into the new financial year.

"With ongoing growth, it is evident that we must continue to invest in our Australian infrastructure.

"It is our intention to invest in additional land and buildings for Transport and Logistics in Melbourne, Adelaide, Sydney and Brisbane.

"Further regional development will also continue, with new branches planned for Toowoomba and Bendigo, in line with our strategy of controlling ‘last mile’ delivery quality, and developing network intensity."

Mainfreight points to the improvements as having attracted "a number of new customers across the DIY and food and beverage sectors", as necessitating further warehouse development in the three eastern-seaboard states.

Full year net profit after tax and before abnormal items was NZ$103.16 million, up 17 per cent on the previous year.

Group sales revenue for the year rose 2.1 per cent to NZ$2.33 billion – excluding foreign exchange effects the increase is 5.1 per cent. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved 13 per cent to NZ$197.54 million – excluding foreign exchange effects the increase is 15.3 per cent.  

This year’s revenue and EBITDA figures are also records for the company, it says.

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