Mainfreight has increased net profit 88.9% to $355.4 million for its full year financial result.
The company says it was a “more than satisfactory improvement” on the prior year and was delivered during “a highly disrupted year” in the world of logistics.
Revenue was up 47.2% to $5.22 billion for the twelve months to March 31.
A final dividend of 87 cents per share has been authorised by the board. It brings the full dividend for the year to $1.42 per share, an increase of 89.3% over the prior year.
A discretionary bonus of $94.2m has been paid to Mainfreight staff, up 114.7% on the year prior.
The result includes a significant increase in contribution from the company’s air and ocean division across the world. It also reports increased contributions to profitability and growth in domestic warehousing and transport across its global network.
Net profit after tax from its businesses outside of New Zealand now exceeds 72% of the group total.
The company says consumer spending “markedly increased” during the period. The result also reflects supply chain congestion with inflated shipping and air freight costs.
During the year, net capital expenditure totalled $189.1m, with expenditure for land and buildings accounting for $109.4m, warehousing racking and fit-out costs of $35.3m, plant and equipment of $27.4m, and information technology of $17m.
New Zealand (NZ$)
Mainfreight’s New Zealand revenue was up 33.7% to $1.13b and profit before tax up 39.5% to $38.7m.
The company says it continues to find opportunities for more growth in New Zealand. Its domestic transport network handled record volumes, and at the height of New Zealand’s pandemic response, “delivered more freight direct into homes across the motu than ever before”.
The volume increases, and a shortage of road and rail equipment, impacted service levels through the later part of the 2021 calendar year.
Increased stock holding requirements “squeezed” warehousing to over-utilisation and has seen the company investing in larger facilities going forward.
For air and ocean operations, a lack of international shipping and air capacity, “has proved frustrating to say the least” when trying to secure service and space for export and import customers, it reports.
“Regardless of external issues, we remain confident the New Zealand business will see improvements domestically, and we expect international trade capacity to improve as the year progresses.
“Expansion across our transport and warehousing networks continues to cater for the increased freight tonnage.
“Planned capital investment in New Zealand for land and buildings currently exceeds $195 million over the next two years. An order for a further ten electric pickup and delivery vehicles has also been made.”
Australia (AU$)
Revenue of AU$1.18b was up 34%. Profit before tax of AU$107.5m was up 50.3%.
Europe (Euro €)
Revenue of €567.9m was up 32.8%. Profit before tax of €31.7m was up 41.7%.
The Russia/Ukraine crisis has seen the closure of Mainfreight’s Russian operations. An amount of €1.5m has been allocated to the profit and loss statement to facilitate this. The company’s Ukraine operation is being managed remotely.
Asia (US$)
Revenue of US$231m was up 121.5%. Profit before tax of US$28.9m was up 309.4%.
This was the company’s best-ever performance across the Asia region and was assisted by strong volumes of export cargo from most Asian countries into the USA, closely followed by Trans-Atlantic movements.
This was despite congestion and shortages of both shipping and air space, and container equipment, the company reports.
The city-wide closure of Shanghai due to the pandemic is affecting both air and sea freight volumes post year-end, however the company remains confident these will return in the near future.
The Americas (US$)
Revenue of US$1.09b was up 88.8%. Profit before tax of US$100.8m was up 289%.
