Highlights include 14 per cent increase in Australian revenue
Mainfreight has announced its “best ever” full-year financial results, spotlighting “healthy profit improvement across all of our global regions” and salary increases in Australia and New Zealand.
Its net profit (before abnormals) was $141.08 (A$133) million, up $29.08 million or 26.0 per cent.
On its Australian arm, the NZ-based company reports revenue of A$710.17 million, up $86.90 million or 13.9 per cent, with earnings before interest, tax, depreciation and amortisation (EBITDA) at A$55.37 million, up $5.49 million or 11.0 per cent.
“After a relatively slow start to our financial year we have achieved satisfactory full year results in Australia,” Mainfreight comments.
“The new branch location for Transport was opened in Toowoomba (having been delayed), and the Geelong branch moved to a new facility.
“Plans are underway for additional domestic freight facilities in Sydney and on Queensland’s Sunshine Coast.
“Construction of our new Adelaide facility is expected to commence late 2019.
“In our Logistics business, four new warehouses were opened with an additional AU$12 million of new business.”
Maninfreight also notes its standing in the premium beverage sector continues to grow in Australia.
“New warehouse business has in turn flowed into domestic freight tonnage.
“Additional warehousing capacity is planned in the coming year for Brisbane, Sydney, Melbourne and Perth, including purpose-designed capacity to aid warehousing of retail dangerous goods, which will be complemented by our specialist dangerous goods transport business, ChemCouriers.
Its Air and Ocean business improved both sales growth and profitability over the year, “with a strong emphasis on export related growth, particularly in the perishable airfreight sector”.
“As with the balance of our Air & Ocean network globally, there is an emphasis on the development of LCL consolidation activity.”
See how Mainfreight’s perfomance compares to its results last year, here
As a result, the company reports its strong financial position has allowed it to increase salaries in New Zealand and Australia.
“We are proud of this financial result, our best ever, particularly as it contains healthy profit improvement across all of our global regions.
“Whilst we will bask for a moment, savouring this result, we remain very conscious of the task ahead.
“We have again increased salaries for those at the lower end of our pay range in New Zealand and Australia, in addition to the usual annual salary increases.
“The ongoing investment required to improve and further intensify our network adds increased overheads for the years ahead.
“Aside from increased costs, there is a level of uncertainty in global trade and slowing economies. Whilst not immune to such external effects, we continue to position ourselves to counter the headwinds and look for ongoing growth.”