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Global transport company Mainfreight has delivered a strong full year result, though its second half fell short of its expectations as international freight congestion eased.
"Global trading during our second half fell short of expectations and against a very strong comparison period as international freight congestion unravelled, which included a swift reduction in sea and airfreight rate structures," the company said in its market report.
"This has provided much-needed space availability for our customers, but has impacted our revenue growth. Our operations in the USA and Asia are the most affected."
Key numbers for the 12 months ended March, compared with a year ago:
- Net profit $426.5m vs $355.4m, up 20 percent
- Revenue $5.68bn vs $1.67bn, up 9 percent
- Underlying profit $587.4 vs $489.4m, up 20 percent
- Return on revenue 10.3 percent vs 9.4 percent
- Final dividend 87 cents a share vs unchanged - FY dividend $1.72 cps, up 21 percent
The company said inflation had driven up costs, which in turn drove up freight rates in the regions it operated.
International volumes:
- Total air freight kgs down 8 percent
- Total sea freight down 7 percent
- Customer clearances down 3 percent
Despite the drop in volumes, Mainfreight said it would continue to invest in network expansion, land and buildings.
It expected to spend $676m through to the end of 2025: $192m in New Zealand, $176m in Australia, $97m in the Americas and $91m in Europe and Asia.
Performance:
- NZ revenue up 14 percent
- NZ underlying profit up 24 percent
- Australia revenue up 14 percent
- Australia underlying profit up 27 percent
- Americas revenue down 12 percent
- Americas underlying profit down 12 percent
- Europe revenue up 11 percent
- Europe underlying profit up 48 percent
- Asia revenue down 34 percent
- Asia underlying profit up 0.9 percent
Mainfreight expected the first half of the current year to remain difficult amid an economic downturn and inflationary environment.
"Trading post result has continued to show a weakness in volumes and activity," it said.
"Whilst management of overhead cost structures and the implementation of freight rate reviews have been successful, it is expected to be a challenging first six months of trading.
"We remain confident of our medium to long term growth prospects."