Mainfreight said profits have improved since last year. Photo: RNZ / Samuel Rillstone
Transport heavyweight Mainfreight says the first half of its financial year has beaten expectations with an 8.5 percent increase in revenue to $2.55 billion.
However, underlying profit for the six months ended September was expected to be down 9.3 percent on the year earlier to $158.5 million.
The investor update follows a big drop in Mainfreight's full-year profit for the year ended March, as global trade conditions returned to normal from the peak demand period during the Covid-19 pandemic.
The company said the second half of the calendar year was better than 2023, with volumes and shipments up across all its divisions, and new customers having created opportunities for margin improvement.
Geopolitical risks in the Red Sea as well as disruption in US eastern ports were an increasing challenge which could also present opportunities, it said.
Closer to home, New Zealand's trading conditions reflected the challenging economic environment, though it had been able to grow its market share.
Mainfreight said margins across its networks still required improvement.
The half-year results to 30 September 2024 will be released on Wednesday, 13 November.