Revenue and profit jump as new warehousing developments grow
New Zealand giant Mainfreight continues to expand in Australia – both in physical presence and financial might.
It reports full-year financial results to March 31, 2021 as delivering an overall record result and “a satisfactory improvement on the year prior” across its whole business comprising New Zealand, Australia, Europe, the Americas and Asia.
Company revenue for the year increased 14.5 per cent to NZ$3.54 billion (A$3.3 billion), and profit before tax grows 27.2 per cent to NZ$262.41 million (A$246.58 million).
That performance is mirrored in Australia, Mainfreight’s most lucrative arm, which comprises a little under a quarter of the firm’s overall earnings.
Australia’s revenue is reported as A$877.16 million, up A$120.36 million or 15.9 per cent.
Profit before tax comes in at A$71.50 million, up A$22.72 million or 46.6 per cent.
Those numbers appear to exceed the company’s expectations.
“A remarkable performance from our Australian team,” Mainfreight commentary notes.
“Our growth and development across the Australian freight and logistics sector has contributed to this very satisfactory financial performance, which is our best year-on-year improvement that we have achieved in Australia.
“The push by our Transport business into regional centres has provided better on-time freight delivery, and developed a larger customer base.”
Mainfreight credits the growth to its ongoing facilities footprint expansion in Australia.
How Australia aided Mainfreight’s performance last year, here
“We have extended our network further into the regions, and expect to open in another five centres in the next 12 months,” it says.
“Building consents are underway for our two biggest cross-dock facilities, in South Melbourne and Adelaide, which we expect to be completed mid-2022.
“Our Warehouse footprint also increased during the year with the opening of an owned site in Melbourne, and another leased site in Sydney.
“Further temporary sites are an interim measure which will see us at 203,000m2 by the end of July 2021, up over 40,000m2 since March 2020.
“Our two new-build warehouses are scheduled for completion by late 2022: South Melbourne at 30,000m2 and a leased facility in Sydney of 50,000m2, and are likely to bring us a net gain of 59,000m2 once interim and smaller warehouses are consolidated.”
The strategy to control freight flow in and out of its warehouses will provide a future benefit to Mainfreight’s Transport and Air & Ocean divisions, Mainfreight adds.
“Automation is currently being tested at our Epping, Melbourne site, as a trial for wider application globally.
“Air & Ocean growth mirrors that of our global network.
“A well-executed focus on air freight capability and LCL freight growth were highlights of the year.
“Increasing trade volumes (particularly exports to Europe) will deliver additional growth in the coming year.”