MaxiTRANS is building profit
Australia’s large trailer conglomerate is growing
MAXITRANS has reported a net profit, (after tax attributable to equity holders), of $10.7 million representing a 104 per cent increase in reported net profit after tax, and a 22 per cent increase in underlying net profit (after tax attributable to equity holders) for the year ended 30 June 2017.
The company has reported that revenue of $340.1 million was consistent with the prior year. A 2 per cent revenue growth from the Australian trailer business was offset by a 27 per cent decline in revenue from the New Zealand trailer business resulting in revenue for the trailers segment remaining flat on the prior year.
Underlying net profit before tax for the Trailer segment declined 16 per cent comprising a 6.7 per cent improvement in the Australian trailer business which was more than offset by a 94 per cent decline in New Zealand profitability due to the continued market uncertainty resulting from transport regulation changes affecting trailer dimensions.
A 1.2 per cent increase in MaxiPARTS revenue and a 3 per cent increase in revenue from our China business delivered an overall revenue increase of 1.4 per cent for the Parts and Components segment.
The Parts and Components segment’s net profit before tax improved 45 per cent, driven by a significant improvement in the Australian MaxiPARTS business.
MAXITRANS managed to hold its leading market share position, achieving a 3 per cent increase in unit sales. In respect of their Australian trailer business the company reported that general market conditions had started to improve with trailer registrations increasing slightly in 2016 after two years of decline.
Strong infrastructure construction activity, most notably in NSW, and increased crop production, drove a 74 per cent increase in tipper sales. It noted that sales of the Freighter general freight products declined during the year as market confidence remained subdued. While sales of the Maxi-CUBE refrigerated vans were also lower, this was partly due to the abnormally high sales in the prior year. The contract awarded during the year to build 395 refrigerated vans and trailers for Coles Supermarkets commenced in the last quarter but it did not make a material contribution to the financial performance for the year although the company expects there will be an improvement in working capital in FY18.
Parts and Components
AFTER experiencing two years of decline, external revenue for the MaxiPARTS business increased by 1.2 per cent. The company’s technology-enabled MaxiSTOCK customer managed inventory system experienced strong market acceptance and has delivering above 20 per cent like-for-like sales growth from customers embracing this technology. Improved product pricing discipline and strong overhead management saw profit grow significantly ahead of revenue.