Mainfreight chairman Bruce Plested has challenged New Zealand businesses to lift their sights beyond the domestic market, using the company’s 2025 annual shareholders meeting to highlight the wealth gap between New Zealand and countries like the Netherlands, and to push for greater ambition at a national level.
Speaking at the meeting in Auckland on July 30, Plested praised the company’s global team and performance, while reflecting on a recent trip to the Netherlands with the New Zealand Initiative.
He noted that although the Netherlands covers just 41,000 square kilometres —compared with New Zealand’s 268,000 — it boasts a population of 18 million and a gross domestic product (GDP) of US$1 trillion. New Zealand, by contrast, has a population of 5.3 million and a GDP of US$252 billion.
“These numbers show the difference in wealth creation between New Zealand and the Netherlands,” Plested told shareholders.
“New Zealand and Mainfreight must have much bigger ambitions for our business and our country.”
He described the efficiency and ambition evident throughout Dutch society, from their highly developed cycling infrastructure — where helmet use is rare and drivers are held responsible in collisions — to the scale of automation at the 42-kilometre Rotterdam port.
He recalled seeing university campuses with slogans like “Making dreams come true” and cutting-edge training in engineering and automation that left the visiting delegation feeling “humble and inadequate”.
Plested urged New Zealand businesses to embrace a global mindset, even if it comes with setbacks.
“Let us all encourage more New Zealand businesses to look over the fence and have a go at establishing themselves in the larger economies of the world,” he said.
“It’s not easy. It comes with hard work, and so it should, and it will help them be better back home in New Zealand.
“As investors, let us not be too critical of them as they get underway. It takes time. Just as Mainfreight has done, a long-term vision will always benefit good companies.”
He thanked group managing director Don Braid and the wider team for “a stunning annual report,” calling it “a professional and powerful presentation of our company and its progress and vision for the future.”
Continued investment
Mainfreight reported revenue of $5.24 billion for the year to March 2025, an increase of 11%. Net profit rose 31% to $274.3 million, due to a non-cash tax adjustment in the previous year, while profit before tax fell three per cent to $383.6m, reflecting increased property costs and competitive pressure in key markets. A full-year dividend of $1.72 per share was declared.
Australia delivered a record result and is now the company’s largest revenue and profit contributor. Performance declined in New Zealand, Asia and the Americas, although New Zealand saw market share gains and growth in import volumes that supported air and ocean services.
The company completed eight new facilities during the year, including three transport sites and two warehouses in Auckland, an airfreight facility in Brisbane, and new cross-docks in Chicago and Dallas. Total operating cash flow reached $584m, up from $505m a year earlier, while capital expenditure was $234m, including $111m on property. Net bank debt was reduced by $23m to $125m, and the company renewed its $504m in bank facilities.
Mainfreight paid discretionary team bonuses totalling NZ$30.5m across Australia, Asia and Europe, but New Zealand and the United States teams did not qualify under performance criteria.
While the company expects to take a more cautious approach to property spending over the next two years, it plans to invest NZ$330m across New Zealand, Australia, the Americas, Europe and Asia in facilities and fit-outs through to 2027.
South Auckland remains a focus for network intensification, with new warehousing and transport capacity planned or underway, including the specialist 2Home division and a repurposed rail-served Daily Freight site.
Mainfreight continues to invest in sustainability initiatives, with 86% of its handling equipment and 54% of its car fleet now electric. Only one per cent of its truck fleet is electric, but the company is trialling biofuels and investing in solar arrays, battery storage and rainwater collection systems. More than 1000 customers now use Mainfreight’s carbon tracking tools.
Trading update
Trading in the early part of the new financial year has been “difficult”, with short trading weeks and tariff uncertainty affecting global freight lanes.
Group revenue for the 17 weeks to July 27 rose 1.5% to $1.75b, but profit before tax fell 24.1% to $73.5m. While sales activity remains strong and customer gains are estimated to be worth $324m annually, customer downtrading shaved $38m from earnings in New Zealand alone.
Despite this, the company remains confident about the second half of the year, with improved economic conditions and tighter control of overheads expected to support performance.
“Expect further network intensification and development from 2026 to 2030,” Mainfreight says.
