Profits Up for Mainfreight

With full year net profit after tax and before abnormal items up to $88.18 million, Mainfreight says it has had another year of record results. The result issued this week talks about an increase in profit of 5.6 per cent over the previous year.

 

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It has been reported that a good performance in New Zealand, Asia and Europe counter balanced the poorer performing sections of the business in Australia and the Americas.

 

The company spent a cool $44.2 million on a new facility in Melbourne during the year, out a total capital expenditure budget of $93.2 million.

 

Despite being described as poor, there was a 2.6 per cent increase in Australian sales to $503 million, but it wasn’t a strong enough rise to increase the earnings result. This dropped 8.2 per cent to $34 million where margins were squeezed, as a result of overhead cost increases.

 

In it’s end of year report, Mainfreight talks about an improving performance so far this calendar year in Australia, a trend which it expects to continue into next year. Priorities include increased sales activity and a concentration on the Sydney market.

 

Sales revenue for the year went up 11.2 per cent to $2.28 billion (excluding foreign exchange effects the increase is 4.3 per cent). The EBITDA result also set a new record at $174.85 million; an increase of 7.8 per cent over the year before’s result (excluding foreign exchange effects the increase is 3.4 per cent).

 

Mainfreight reckon this is a satisfactory result after a poor first half for the the last financial year. The company says better management of overhead costs, and an improving gross margin assisted the second half results.

 

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Author: Tim Giles

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