Mainfreight reports strong lift in 1H net profit, upbeat about full year
By Rebecca Howard
Nov. 14 (BusinessDesk) - Mainfreight reported a 32 percent lift in its first-half net profit as its offshore divisions continue to grow. The global transport and logistics company said trading through October and into November has continued to be strong.
Net profit was $55.7 million in the six months to Sept. 30, versus $42.2 million in the prior year, the Auckland-based company said in a statement. Earnings before interest, tax, depreciation and amortization were $108 million, up 22 percent.
Mainfreight will pay an interim dividend of 22 cents per share, up 3 cents on last year "reflecting current profit levels and ongoing confidence for further improvement at the year-end result," it said.
"This satisfactory performance is attributable to ongoing growth and profitability across all five regions in our global network. Our offshore divisions are now contributing 58.1 percent of ebitda, totaling $62.9 million. Sales generated offshore in this first half year totalled $1.09 billion, 76 percent of our total revenue," it said.
New Zealand revenue was $343.1 million, up 8.3 percent compared to the same period a year earlier, with domestic freight volumes hitting record levels. Australian revenue was A$341.7 million, up 16.7 percent and Mainfreight noted that freight volumes continue to grow heading into the pre-Christmas period.
In Asia, revenue lifted 7.2 percent to US$40.2 million and the company said network development across South East Asia gained momentum with its first Malaysian operation opening on Oct. 15, after the end of the 2018 financial year. Mainfreight also expects to have its first Japanese operation open in early 2019, with licensing and business documentation requirements completed and accepted by Japanese authorities.
The Americas saw revenue lift 16.8 percent to US$237 million, with performance largely driven by its domestic transport operations, where there were new customer gains. The air and ocean operations saw revenues increase in the Americas but gross margins declined, the company said. However, "improvements in margin are evident during October and November, providing confidence for an improved EBITDA result from Air & Ocean at year end," it said.
European revenue lifted 12.2 percent to 182.33 million euros, with sales growth across all divisions.
Looking ahead, Mainfreight said it expects financial performance to improve for the full year.
The shares last traded at $28.75 and are up 13 percent so far this year.