Kiwi transport giant Mainfreight has lifted net profit 66% to $217 million for its half year financial result and says it remains confident in the trading conditions ahead.
Revenue was up 32% to $3 billion with positive contributions across its global network and in line with its earlier earning guidance.
An interim dividend of 85 cents per share has been set by the board of directors.
“All three products, air & ocean, transport and warehousing from the five regions have contributed significantly,” Mainfreight says.
“We do expect a moderation in our air & ocean performance as international sea freight rates decline, albeit we continue to develop our capability including added value services and growth across a variety of trade lanes around our network.
“Investment in our network expansion and intensification continues which will see a further increase in capital expenditure and lease commitments over the next 18 months – such is our confidence in the potential growth opportunities available,” the company says.
New Zealand (NZ$)
Revenue was up 29% to $644.6m and profit before tax was up 55% to $74.4m.
The company says consistent trading and growth from all three divisions contributed to the result.
“Our transport network has increased its footprint with two new branches – Hobsonville and Whakatane. Service levels continue to improve as covid restrictions and supply chain congestion decreases.
“Warehousing utilisation remains high. Activity levels are improving and the increased capacity in 2023 will bring welcomed relief and further growth expectations.
“Air & ocean growth has continued and while ocean freight rate reductions are evident new customer activity has remained strong.
“Satisfactory trading across all three divisions has continued post-September with expectations of this continuing well into December,” it says.
Meanwhile, Australia revenue was up 33% to AU$697.3m, Europe revenue up 26% to 326.9 million euros, North America revenue was up 28% to US$562.8m and Asia revenue down 9% to US$100.4m.
Outlook
Mainfreight says it remains “confident of trading conditions for the remainder of the financial year, albeit cognisant of economic headwinds and declining sea freight rates and volumes leading into the New Year”.
“We remain focused on increased growth, with all divisions continuing to see new customer opportunities.
“Accordingly, we continue to invest in our network infrastructure for the long term across all regions,” it says.
The company will release its financial results for the full 2023 financial year on May 25, 2023.
