Tuesday 13th Nov, 2018

Mainfreight: first half of FY2017-18 falls short of expectations

Photo: Mainfreight
Photo: Mainfreight

NEW Zealand-based logistics giant Mainfreight’s financial results for the first half of the current financial year were good, but not as good as the company hoped.

The company’s numbers were brought down by increased costs stemming from last year’s earthquake in New Zealand’s South Island, and lagging overseas performance.

The company reports total revenue (sales) increased in the six months through September by 7.3% (or NZ$83.15m) over the same period last year to NZ$1.23bn. The company’s net profit was up 1.1% over the prior period at NZ$42m.

Mainfreight’s earnings before interest, taxes, depreciation and amortisation increased 2.8% to NZ$88.77m.

The company’s commentary accompanying the results said better performance in the first half of the financial year was expected even though results were ahead of the year prior.

“Trading in our New Zealand domestic operations was impacted by the additional costs associated with servicing inter-island freight movements via road and coastal shipping following the Kaikoura earthquakes of last November,” the commentary reads.

“Results from the Americas and Asia continue to disappoint, offset by a very satisfactory performance in Australia and ongoing improvement in Europe.”

However, Mainfreight reports trading through October and into November has seen improvement over the prior year, with increasing volumes of freight through all regions.

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