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.

Trailer 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.

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