Another big year of sales for
MAXITRANS continues to see an improvement in conditions for the Australian trailer market with new trailer registrations in 2017 increasing 17 per cent over the prior year, representing the second year in a row of market growth.
This appears to indicate the start of the trailer equipment replacement cycle.
MaxiTRANS has also continued its long-term trend of increasing market share and announced a net profit after tax of $10.1 million for the year ended 30 June, 2018, with a 20 per cent total revenue increase to $409.3 million.
The Australian MaxiPARTS business delivered 12 per cent revenue growth during the year as it continued to expand its product range.
Assisted by the order to build 386 trailers for Coles Supermarkets, the Australian trailer business increased its unit sales by 17 per cent and revenue by 25 per cent.
The order, regarded as the single largest order in the Australian trailer industry at the time, was completed on budget and ahead of time, confirming the company’s credentials to deliver large-scale orders.
Since completion of the Coles order, MaxiTRANS has also secured a number of other high-volume contracts, although not of the same magnitude as the Coles contract.
The Coles order drove the strong sales growth of MaxiCUBE refrigerated vans.
The company also experienced strong sales growth of its Freighter brand products as a result of improved confidence in the general freight sector. In addition, the company experienced a better than expected launch of a standard model trailer that can be delivered in a shorter lead time.
Chairman Rob Wylie and managing director Dean Jenkins said there was strong revenue growth in all businesses, except for China.
“Both Australian and New Zealand business performance highlights buoyant market conditions,” they said.
“The trailer businesses in Australia and New Zealand delivered 26 per cent revenue growth for the year.
“The strategic intent to drive sales volume increase through our existing national wholesale and retail network of 20 locations together with tight cost control resulted in net margin improvement over the prior year. This should continue as the benefits of our national footprint start to become clearer to key fleet customers.
“Whilst still above average historical levels, sales of our portfolio of tipper products into infrastructure construction, agriculture and waste sectors declined from the abnormally high sales levels of the prior year.
“We expect tipper sales to remain strong whilst investment in infrastructure construction continues.”
They said a solid pipeline of product development initiatives to deliver new innovative solutions for their customers and cost reductions would continue to deliver incremental sales into the future.
“The current market conditions are requiring our manufacturing facilities to increase production rates to high levels over a sustained period. This challenge, compounded by the sudden and dramatic shift in production mix placed great strain on the manufacturing facilities, the impact of which was experienced in the last quarter of FY18, thus resulting in the trading update in May, 2018.”
As foreshadowed last year, the New Zealand trailer market rebounded after the period of uncertainty surrounding the transport regulation changes. This, combined with a number of customer contract changes drove a 45 per cent increase in trailer unit sales.
In addition, the business established its first permanent presence in the South Island during the year by opening a new service facility in Christchurch. This has been well received by
SKY’S THE LIMIT: MaxiTRANS has continued its trend of increasing market share and announced a net profit after tax of $10.1 million.
The company expects tipper sales to remain strong while investment in infrastructure construction continues.