Record tonnage - Mainfreight announces 23% increase in after-tax profit
Posted: 11-Nov-2020 |
New Zealand’s largest transport company has reported a 23 per cent increase in after-tax profit to $72.9 million for the six months to September 30, and lifted its dividend payment by 20 per cent to 30 cents a share.
Revenue in NZ is at $378.90 million Up $16.32 million or 4.5% and Profit before tax $37.50 million Up $2.87 million or 8.3%.
Their financial report says that strong domestic and international volumes continue to benefit our New Zealand business units, particularly in the last three months, which has seen the impact of the Covid-19 level 4 restrictions in April and May redressed.
Ongoing customer gains and strong consumer growth trends are providing record tonnage across our Transport networks. Warehousing activity is pleasing, albeit inventory levels are low due to congested shipping and air supply chains.
The report states that their Air & Ocean business continues to see good results in both import and export trade. ‘Space constraints are frustrating, but we have seen revenue levels
improve, in part by increased freight rates from shipping and air lines.’
Trading in October and now into November continues this improvement, with pre-Christmas volumes expected to increase further and the benefit of new customers. A pleasing half-year result considering the slow start to the year through the Covid-19 lockdowns in the various countries and regions.
‘We are extremely proud of our people, across our global network, who have worked tirelessly to produce these results, navigating the hurdles and fallout from the Covid-19 pandemic and finding solutions for our customers.’
Mainfreight expects to see ongoing improvement across all of their regions as they continue to grow market share and adjust their businesses to the fluctuating economic climate. ‘In
Australasia, the normal pre-Christmas volume increase is expected, and is likely to be level or ahead of trading experienced last year.’
‘Strong consumer demand and congested international supply chains are proving to be challenging for our customers and people alike. The current conditions are however providing opportunities for more growth and attracting new customers, as they look for improved service and more certainty in their freight and inventory management.
This confidence provides us with greater certainty to further invest in our network, with more regional expansion underway, and to increase our commitment to more land and buildings where appropriate.’
Mainfreight will release its full-year results for the 2021 financial year to the market on 26 May 2021 and say ‘it is our expectation that this full-year result will be much improved on the year prior.’