Photo: RNZ / Samuel Rillstone
Slowing global trade battered the first-half profits of transport company Mainfreight as post-pandemic demand and prices faded, but the outlook is more positive.
"We're comparing it to one of our better best halves ever, for the year before and of course the full year (2023) was a record year for us," managing director Don Braid said.
"We will always like to do better than the year before. But, when you think about the conditions we're operating in and what we've achieved, we're reasonably comfortable."
Key numbers for the six months ended September, compared with a year ago:
- net profit $124.6 million vs $217m
- underlying profit $174.8m vs $301.7m
- revenue $2.36 billion vs $3b
- interim dividend 85 cents a share.
The 43 percent fall in net profit reflected a downturn in all its markets and across all its operations.
However, Braid said last year's result was exceptional in comparison and left the company in a strong cash position.
"We've been able to continue to win new business and continue to expand the operation. The benefits of the year prior produced a lot of cash for us and we've invested that in the network and continue to invest it in the network. We're a bigger and better business as a consequence."
Braid the second half was shaping up to be stronger than the first, which was typical.
"But we're looking a lot further ahead than that, and we're very excited about what's in front of us."
Mainfreight launched its business into India post the first-half result, which he said would open more opportunities for growth.
"We continue to have building projects on here in New Zealand and in Australia. We have building projects on in America, for both warehousing and distribution, cross-stocks, and [continue] to develop our footprint in Europe."
Braid said the company had become more of a global business over the past three to four years.
"We are probably seen as a disruptor. We're a smaller global operator than some of our larger competitors and we're busy winning business… so we continue to be upbeat about what the world is about."
Braid said the geopolitical and global economic conditions were tough, but the outlook was positive.
"Those are just the conditions we have to work with. At the same time, people still need to eat and drink and we're about providing freight services for those."