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Transport heavyweight Mainfreight has posted a big drop in full-year profit, as global trade conditions returned to normal from the peak demand period during the Covid-19 pandemic.
Key numbers for the 12 months ended March compared with a year ago:
- Net profit $208.7m vs $426.5m
- Revenue $4.72b vs $5.68b
- Underlying profit before tax $395.4m vs $587.4m
- Final dividend 87 cents per share - unchanged
The New Zealand-listed company said trading improved in the second half of the year, particularly in its Australasian business, but conditions were weak in Asia, Europe and the United States.
The result included non-cash write-down of $69 million relating to New Zealand-owned property.
"This result is in line with our expectations as freight volumes and international sea and air freight rates normalise from the peaks experienced during 2022/2023," managing director Don Braid said.
"We are satisfied with the momentum and progress in New Zealand and Australia, but remain disappointed with our performances in Asia, USA and Europe, where our market share remains small."
The company said it had grown into a bigger business and drawn more customers, but was disappointed by its inability to convert it into long-term profitability.
"No matter the prior year's record performance, we should have performed better," Braid said.
Air and sea freight volumes were each up by nearly 5 percent, while domestic transport was down just over 6 percent.
Revenue fell in its air & ocean and transport divisions, but rose in its warehousing division - although profits were down across the board.
"Transport remains our poorest performer. While attracting more customers and freight tonnage, we have yet to find acceptable margins due to poor linehaul utilisation and lack of long-distance freight tonnage," Braid said.
Mainfreight said as a result of the lower profit, its discretionary bonus paid out to staff would be $25m, down 68 percent from the prior year.
The company said trading in the new financial year was "satisfactory", and it was confident of its medium to long-term growth opportunities.