Mainfreight books $20m staff bonus
Freight company Mainfreight will pay its largest ever bonus of $20.7 million to staff members around the world.
The company has reported another record-breaking profit for the financial year ended on March 31.
Its results highlighted benefits to employees including ‘‘larger than usual salary increases at the low end of pay range for team members in Australia and New Zealand’’.
Last year, Mainfreight’s founder and chairman, Bruce Plested, hit the headlines for his comments about social and environmental responsibility.
The company ethos appears to have paid off, with profit before abnormal items up 8.8 per cent to $112m, compared with last year’s 16 per cent rise.
Although Mainfreight makes about two-thirds of its $2.6 billion revenue overseas, the New Zealand operations ‘‘continue to surprise us with their exceptional energy, enthusiasm and commitment to find growth and increased profitability’’, chief executive Don Braid said.
‘‘This despite the ongoing effects of the Kaiko¯ ura earthquakes of November 2016, where inter-island freight links to and from the South Island were restricted to limited rail services and demanded more road and coastal shipping options.’’
The company commissioned new depots, and sites in Auckland, Tauranga and Hamilton have been identified to cater for further growth.
‘‘Our transport division is under the greatest pressure. Congestion, with increased freight tonnage at our sites in Auckland, Tauranga, Rotorua, Palmerston North, Wellington, Nelson and Dunedin, is proving those facilities inadequate to cope. Additional growth from existing customers and volumes from new customers has required land to be sourced in all these areas to enable the construction of new facilities to offset the congestion issues.
‘‘In addition, we expect to intensify our New Zealand branch network with further regional development.’’
The Air & Ocean division recorded increased airfreight and seafreight tonnage across imports and exports, including perishable airfreight exports.
Capacity through the new Christchurch operation, and improvements to Auckland facilities, will see further capability for expected growth.
The company’s Australian operations also had a record year, but its Asian operations were disappointing because of rising costs, while the European and United States businesses were steady.
Shareholders will receive a total dividend for the year of 45 cents a share. The shares were trading at $25.75 each from $22.28 a year ago.
In addition to the $666m revenue from its New Zealand operations, Mainfreight earned $667.9m from its Australian division, $627.8m from the US, $119.5m from Asia, and $562.4m from Europe.
Over the next year Mainfreight expects to spend about $17m on property development in Auckland, with other amounts in various centres coming to a total of $52m. A further $57m is expected to be spent in Australia, and $12m in the Netherlands.
The company’s sustainability report said Mainfreight continued to lobby for more domestic freight by rail, because trucks emitted 4.6 times more carbon dioxide per tonne-kilometre carried than trains. Last year the company won the Dutch Sustainability Award for emissions reduction in transport.