Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Mainfreight FY profit climbs 36% on Bosman settlement

Mainfreight FY profit climbs 36% on Bosman settlement, focused on global growth

By Paul McBeth

May 28 (BusinessDesk) - Mainfreight, the transport and logistics group, boosted annual profit 36 percent, helped by the settlement with the former owners of Wim Bosman, and is focused on growing its global footprint on the way to becoming "a substantially bigger and better business."

Net profit rose to $86.6 million, or 90.27 cents per share, in the 12 months ended March 31, from $65.9 million, or 66.45 cents, a year earlier, the Auckland-based company said in a statement. Stripping out the $12.1 million gain from its Wim Bosman settlement and restructuring costs in Europe, earnings rose 14 percent to $77.5 million on a 2.1 percent gain in sales to $1.92 billion.

"The aches and pains of establishing our footprint in Europe through our 2011 acquisition are behind us, and the potential for growth can be clearly seen in Australia, Asia and the Americas," the company said. "We are focused on developing all our offshore operations into significant profit and revenue contributors for our group."

Mainfreight recognised the $12.7 million Bosman settlement in the first half, following a dispute after the European business lost several key trading accounts.

The company dropped parcel-freight from its Australian transport unit in the year, closed an unprofitable Belgian operation and is putting more resource into building long-term customer relationships in the US domestic market.

"We are confident of bettering our financial performance again," the company said. "More importantly, we will maintain the momentum we have, growing Mainfreight into a substantially bigger and better business."

The board declared a final dividend of 19 cents per share, payable on July 18, taking the annual return to 32 cents.

The shares fell 0.9 percent to $12.92 yesterday, and have gained 7.9 percent this year. The stock is rated an average 'hold' based on five analyst recommendations compiled by Reuters, with a median target price of $12.20.

Mainfreight's New Zealand unit boosted sales 6.6 percent to $505.2 million and earnings before interest, tax, depreciation and amortisation rose 12 percent to $67.4 million. The Australian business increased revenue 5.8 percent to A$458.5 million, and lifted Ebitda 16 percent to A$35.2 million, and its contribution to group earnings is expected to eclipse New Zealand's "in the not too distant future."

The company's American unit increased sales 1.7 percent to US$363.6 million and Ebitda 11 percent to US$18.9 million, and is expected to grow at a faster pace than than the rest of the company in the near term as market opportunities are exploited.

The European business increased sales 2.4 percent to 250.7 million euros, though Ebitda declined 5.7 percent to 8.92 million euros.

"We are cautiously optimistic that the worst of our European business's disappointing performance is now behind us, and is well-positioned to provide more growth and profitability into the future," the company said.

Mainfreight's Asian unit boosted sales 26 percent to US$37.7 million, and Ebitda climbed 36 percent to US$3.52 million, largely through trade to and from the US.

The company increased operating cashflow to $120.4 million from $83.2 million, holding cash and equivalents of $54.5 million as at March 31. Mainfreight held bank debt of $258.4 million at the end of the financial year, down from $277.3 million a year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Industrial Action: Stats NZ Throwing Public Money Away Duplicating Data

The Public Service Association (PSA) says Statistics NZ are throwing money away by collecting the same data twice for official statistics such as the Consumer Price Index... As part of the ongoing industrial action, field interviewers who are PSA members are continuing to collect data, but are not sending it through to Statistics NZ. More>>

ALSO:

Other Stats:

Space: Rosetta's 'Philae' Makes Historic First Landing On A Comet

After more than a decade traveling through space, a robotic lander built by the European Space Agency has made the first-ever soft landing of a spacecraft on a comet. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news