Mainfreight has posted a net profit of $124.5 million for its half year result, down 42.6% on the same period last year.
Revenue was down 21.6% to $2.3 billion for the six months to September 30.
The NZX-listed transport and logistics firm says the results reflected a more “normalised” trading environment from that experienced in the prior year, where “exceptionally high freight volumes and rate structures overly inflated our trading results”.
A return to a more normalised trading environment saw results across its air & ocean and domestic transportation categories decline.
Operations across the USA, Europe and Asia are the most affected, it says.
Operating cash flows declined from $291.4m to $186.8m.
An interim dividend of 85 cents per share has been set by the board.
“This result reflects a well signalled downturn in freight demand and the subsequent reduction in airfreight and ocean freight rate levels.
“Inflationary pressures have increased our cost to service, and net margins have reduced as a consequence.
“During the month of September, we have experienced small improvements in trading, particularly across our domestic freight networks in New Zealand and Australia. However, our American and European Transport operations continue to lag,” the company says.
Mainfreight says its strong customer verticals in food, beverage, DIY, perishable and retail sectors, alongside its global logistics network, are providing further opportunities.
Recruitment of people “has been closely managed” and through “natural attrition” staff numbers have declined by 500 since March 31.
Capital expenditure for the 2024 and 2025 financial years will reduce from $676m to $563m, a decline of $113 million from previous estimates, because of building delays and re-evaluation of development projects.
“We expect our second six months of trading to improve, albeit marginally, and remain confident of our medium to long-term growth prospects,” it says.
Mainfreight will release its financial results for the full 2024 financial year on May 29, 2024.
