Mainfreight posts record Australian performance
New Zealand transport and logistics giant Mainfreight has seen its Australian operation help power a record annual net profit result
NEW ZEALAND TRANSPORT and logistics giant Mainfreight has seen its Australian operation help power a record annual net profit result of NZ$107.9 million ( A$ 99.3 million), up from last year’s NZ$101.5 million.
The Australian operation brought in the most revenue in the 2017-2018 financial year after trailing the core NZ market and the ‘Americas’ operation in the previous year to March – generating what Mainfreight says was the best performance improvement of any country in its network.
Australian sales revenue increased 16.6 per cent, up A$ 88.77 million to A$ 623.77 million, while earnings before interest, tax, depreciation and amortisation ( EBITDA) improved 18 per cent to A$ 49.92 million.
Mainfreight says it plans to continue its capital investment in new land and buildings across Queensland, New South Wales, Victoria, South Australia and Western Australia to cater for these levels of growth, which it says are “sustainable”.
“New transport branches in place for Bendigo and Toowoomba (with Wollongong to follow), will expand our reach into regional Australia, with total branch locations throughout Australia now numbering 53,” it says.
“Tasmania and Far North Queensland, as branch locations, remain of high interest. New logistics facilities in Melbourne, Sydney and Perth will add a further 52,000 square metres to our warehousing footprint, increasing pallet capacity to 187,100 pallets.”
The new sites include dedicated hazardous goods facilities to complement its specialist hazardous goods transport business Chemcouriers, it says.
Mainfreight made headlines at home for the NZ$20.7 million “discretionary bonus”, its largest ever and a payrise of 7.4 per cent, in “recognition of the commitment and performance of our people”.
“In New Zealand and Australia, we have always paid above the minimum and living wage levels, however we have chosen to further lift salaries for those at the lower end of our pay range, with an additional boost over and above our usual annual salary increase this year,” managing director Don Braid says.
“New logistics facilities in Melbourne, Sydney and Perth will add a further 52,000 square metres to our warehousing footprint.”