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.
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.