Mainfreight's New Zealand operations provided a boost to revenue. Photo / Sarah Ivey
Transport and logistics firm Mainfreight has posted a 40 per cent rise in first quarter earnings, despite challenging economic conditions and high fuel costs.
Net profit after tax - excluding one-offs - for the three months ending June 30 was $8.22 million, an increase of $2.38 million on
the same quarter last year.
The result excludes the $61.2 million gained from last year's sale of the company's interests in freight forwarding business LEP and logistics business Pan Orient.
Total revenue for the period was $289.1 million, up 62.4 per cent on the previous corresponding quarter's $178 million.
But costs have also skyrocketed. The cost of transportation alone soared 68 per cent, rising from $114 million to $191.5 million.
Earnings before interest, tax, depreciation and amortisation improved from $11.89 million to $16.56 million.
Operations in New Zealand and the United States were key to the improved performance. Revenue from the New Zealand domestic market increased 17.9 per cent due to market share gains, while international market income improved by 3.1 per cent to $23.92 million.
But poor export volumes, notably in perishable airfreight, continue to harm growth.
In the US, Mainfreight USA and CaroTrans posted revenues of US$79.66 million ($111.72 million), and a combined ebitda of US$3.63 million.
Revenue grew 6 per cent for Mainfreight USA while CaroTrans' income grew 51.2 per cent.
Revenues also grew in Mainfreight's Australian domestic operations, but ebitda declined by 18.6 per cent due to costs incurred in fulfilling growth strategies. Australian international operations increased revenues too, but ebitda excluding foreign exchange declined 3.6 per cent, primarily as a result of increasing labour costs and declining margins in the Asian trade.
Revenues for Mainfreight's Asian operations improved 33 per cent to US$3.84 million while the ebitda of US$0.45 million was similar to the previous period.
As with Australia, additional costs were incurred with investment in future growth.
The company was "cautiously optimistic" about its performance for the remainder of the year, with July and August trading in line with last year.
Mainfreight shares closed unchanged at at $7.12.
