Mainfreight's group revenue is up for the recent quarter but profit before tax has dipped. Photo / Alex Cairns
Mainfreight's group revenue is up for the recent quarter but profit before tax has dipped. Photo / Alex Cairns
Mainfreight expects Australia to become its biggest profit earner, the global logistics company has told shareholders at their annual meeting.
The NZX-listed company said group profit before tax at $83.1 million had dipped 11.2% in the 15 weeks from April 1 to July 14 compared to the same period inthe previous financial year, while revenue was up 8.5% at $1.47 billion.
Australian operation revenue at A$428.5m ($474m) for the period was the strongest performer, with before tax profit 17.5% up on the previous period.
Managing director Don Braid in a presentation said “revenue growth is pleasing. Management of margin and overheads will be the magic”.
Chairman Bruce Plested said the year to March 2024 had been the first year in 14 years where Mainfreight’s net profit after tax fell from the previous year.
Mainfreight chairman and founder Bruce Plested. Photo / George Novak
“That reduction in profit was some 35% but was against an all-time record high to March 2023.
“The decline in tax paid profits continues into the current year, but at a lower level than the past year. In NZ and Australia, where we have been for many years, we expect further profitability improvements in this current year.
“Our other regions, Asia, Europe and the USA will take time to find meaningful improvements.”
Plested said it was important for shareholders to understand that the Western world and most other countries have the same problems as New Zealand: “faltering education standards, particularly amongst young people; significant inflation flowing into most family costs; growing poverty and levels of crime and homelessness on the streets”.
“The upcoming USA election does not give much confidence of a settled future, neither the behaviours of some of the world’s biggest egos.”
Mainfreight was increasing its market share in most countries where it operated and the company’s long-term vision was helping it keep growing where there was opportunity, he said.
“It is regretful, if not appalling, in New Zealand where Mainfreight is the fourth largest customer of KiwiRail (behind coal, forestry and milk), that we are not included in the group making decisions for the future of the Cook Strait rail ferry services.”
The meeting farewelled Richard Prebble, a director since Mainfreight’s NZX-listing in 1996.
Braid’s presentation showed Asia operation revenue at US$37.6m ($63.5m) was up 31.4% in the 15 weeks on the corresponding period.
New Zealand operation revenue at $315.1m was 1.3% down.
Andrea Fox joined the Herald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.
