Mainfreight shares hit record high price

AUCKLAND: Shares in Mainfreight hit a record high after the company said its first half pretax profit is estimated to have leapt by 23.4% to $102 million.

The global logistics company said it remained optimistic about the outlook.

By 10am yesterday, the stock was at $51.25, up $2.50 or 5.7% on Tuesday’s close.

The company said in a market update that revenue for the 26 weeks to September was estimated to have improved by 7.2% to $1.6 billion.

In transport, Mainfreight said it was gaining market share and that its margins were holding up.

The company opened a Levin branch during the Covid19 and completed a new facility at Tauranga. Projects for Gore, Spring Creek and Whakatane are in the design and build phase.

In warehousing, there had been increased levels of sourcing inquiry.

Three new warehouses had opened since March — two in Auckland and one in Hamilton.

In its ocean and air transport division, Mainfreight had made a ‘‘courageous effort’’ in transporting personal protection equipment needed for the Covid19 pandemic.

The company said there had been ongoing trading improvements from established customers, and increasing market shares across all three divisions.

Seasonal increases in trading, preChristmas, were expected and the company remained ‘‘cautiously optimistic’’.

In the year to March 31, Mainfreight’s profit came to $147.98 million, up $6.89 million or 4.9% on the previous year’s.

The stock closed yesterday evening at $51.30. — The New Zealand Herald