Mainfreight operates in 25 countries in five regions around the world. Photo / Supplied
Mainfreight operates in 25 countries in five regions around the world. Photo / Supplied
In gratitude to its 10,393-strong global team for their efforts working under "unimaginable pressure" last year, Mainfreight has published every one of their names in its new annual report.
The NZX-listed global logistics and transport company reviewed another record financial performance - revenue up 47 per cent to $5.2 billion,profit before tax up 86.5 per cent to nudge $490m, net profit after tax 89 per cent stronger at $355m - but the overarching theme of its annual report was praise for its team during "extraordinary" economic conditions and supply chain snarls in all five world regions it operates in.
Group managing director Don Braid paid tribute to "the wonderful efforts of our people, whose entrepreneurial spirit has found solutions for our customers in what has been a difficult logistics environment".
Chairman Bruce Plested, who for the eighth year running did not accept the annual governance fee he's entitled to - $240,000 in FY22 - wrote that in Mainfreight's 45th year, most of the freight the company moves around the world, much of it 24/7, was required "on time".
"... We have a company-wide passion to achieve, and achieve and keep on achieving. That is perhaps the most important way in which we retain our existing customers and grow our business," said the company's founder.
Mainfreight paid a FY22 discretionary bonus totalling $94.2m to its team, up 114.7 per cent on the previous year.
Thanking the team for rising to the challenges of "extraordinary times", the annual report said "with everyone working under unimaginable pressure at times, you've made the impossible, possible", going on to fill 15 pages with their names.
Director fees did not increase from $120,000 in FY22, but Braid's remuneration rose by $779,917, from $2.59m in FY21 to $3.37m.
This comprised base salary of $2.5m, up from $1.8m in 2021; a discretionary performance bonus of $806,080 ($726,163) and vehicle and other non-cash unchanged at $67,347.
Last year due to Covid, Braid's base salary was paid at 50 per cent of the normal rate from April 12020 to September 30 2020.
Don Braid, managing director of Mainfreight. Photo / Natalie Slade
The report said the discretionary performance bonus related to the previous financial year based on that year's revenue and profit growth, as well as other quality KPIs. A minimum of 33.3 per cent of base salary was payable. There were no other short or long-term incentives.
Last year director fees were also paid at 50 per cent of the normal rate from April 1 2020 to September 30 2020 due to pandemic uncertainty.
Noting Mainfreight's "successful formula" of giving autonomy to brand managers and leadership teams, and promoting leaders internally as retirement or other changes occur, Braid, 62, said "the same process will follow for succession to the group managing director role - when that time comes".
A 45-year veteran in the freight industry, Braid has been 28 years at Mainfreight. He was appointed to the board in 2000.
Chair Plested, 80, has been 44 years with the company.
Braid repeated his annual result caution that the company did not expect the FY22 quantum of profit improvement to reoccur in the short term.
"Rather we anticipate we will revert to our normal levels of revenue and profit growth."
A key objective was to intensify Mainfreight's network of facilities within cities and across and between countries and regions, he said.
"Continuing growth has meant we require more and larger facilities, and to this end, our capital expenditure will be approximately $540 million over the next two years, of which $450m will be for land and buildings.
"We will also add a further 54 leased facilities to assist the growth of the network."
Capital would continue to be invested to support growth aspirations, Braid said.
"We expect similar levels fo investment in land, buildings and technology well into the future."
