An announcement of a profit increase at Mainfreight shows the global transport company increasing both revenue and profit. The results, released in the Mainfreight Annual Report document revenues of $2.28 billion, up 11.8 per cent on last year and net profit up 5.6 per cent to $88.2 million.
Things were not quite so rosy in Australia as they have been for the company around the world.
“Our results in Australia during this past financial year have been disappointing,” said the report. “The deterioration of performance has occurred in our Transport operations, where revenue growth was far outweighed by weaker gross margin performance and high overhead cost increases.
“A concerted effort to improve sales growth and to secure better control of costs during the latter part of the financial year, has achieved good momentum for improvement which will carry forward into the 2017 financial year.”
The company said it is positive about growth prospects in Australia. Admitting market share remains small in comparison to the incumbents’, Mainfreight reckons its focus on high-quality freight services via dedicated, purpose-built facilities will see growth achieved.
“The 2016 financial year was not the easiest of years, but in hindsight and with closer analysis, much was achieved,” said Bruce Plested, Mainfreight Executive Chairman. “We completed property projects in New Zealand and Australia, including our largest facility in Epping, North Melbourne. We took on new leased Warehouses in Hong Kong (our first in Asia), and in the USA – in LA Dallas and Newark.”