Mainfreight expects 9.3% H1 pre-tax profit drop

Mainfreight expects to report a 9.3% fall in pre-tax profit to $158.5 million in the first half, due to earnings declines in the Americas, New Zealand and Asia, the logistics firm said in an investor day update.

The update covered 26 weeks of trading, and was an estimate provided in advance of the company’s half-year results to September 30, which will be released on November 13.

The expected profit decline for the group was despite an 8.5% increase in revenue to $2.55 billion.

Mainfreight said there had been a small improvement in the second quarter (July, August and September) and it expected to see further improvements over the second half.

Increased customer gains, volume improvements and increasing ocean freight rates had driven “satisfactory” revenue gains.

By geography, the Americas posted the biggest fall, with its first half pre-tax profit declining by 32.1% to US$8.14m ($13.3m).

New Zealand followed with a 24.1% fall to $46.38m, while pre-tax earnings from Asia were down 9.6% at US$5.93m.

Australia was the standout - with before-tax earnings gaining 7.6% to A$60.8m ($67m), although margins in its air and ocean business were under pressure.

Mainfreight’s operation in Europe posted a 5.5% gain to €13.23m ($23.7m).

In May, Mainfreight posted a 33% fall in profit before tax to $395.4 million for the year to March 2024 as freight volumes and international sea and air freight rates returned to earth.

Shares in Mainfreight last traded at $70.40, having gained 12% over the past 12 months.