Mainfreight has best year on turnover of $5 billion

AUCKLAND: Global logistics company Mainfreight has turned in its best financial year yet, posting an 88.9% lift in net profit and hitting $5 billionplus revenue.

Net profit was a record $355.4 million, up $167.3 million on FY21. Revenue at $5.22 billion was up $1.67 billion or 47.2%.

A final dividend of 87c per share will take the full year’s return to shareholders to $1.42 a share.

The Aucklandheadquartered transport company will pay a discretionary profit bonus to staff totalling $94.2 million, up 114.7% on the previous year.

Adjusted for foreign exchange effect, group revenue was up 50.8% and profit before tax up 90.5%.

Costs from closing the Russian operation is included.

The company said all five operating global regions showed increased sales growth and profitability.

Net profit after tax from businesses outside New Zealand had surpassed 72% of the group total.

Supply chain congestion and associated inflated shipping and air freight costs were reflected in the revenues, the company said.

While the result included a significant lift in income from air and ocean operations across the world, there had also been increased contributions to profit and growth in domestic warehousing and transport across the world network.

Operating cash flows were $503.8 million, up from $376.3 million.

Current debt facilities totalled $494.3 million, of which $318.7 million remained undrawn.

Net debt at 31 March 2022, was $1.1 million, down from $102.2 million in FY21.

Gearing ratios continued to improve, at 0.1% compared with 8.4%.

During the year, net capital expenditure totalled $189.1 million, with expenditure for land and buildings accounting for $109.4 million, warehousing racking and fitout costs of $35.3 million, plant and equipment of $27.4 million, and IT of $17 million.

Expected capital spending across the next two years was $540 million, of which property would be $450 million. A further 54 leased opportunities would be completed in this period, mainly warehouses in New Zealand and Australia, and warehousing and transport facilities in the Americas, Europe and Asia.

The company said while there had been much talk of the artificial impact of inflated air and sea freight rates on revenues, the performance of its air and ocean division also reflected growth in the customer base.

Transport and warehousing in all five regions also improved financial performances.

Trading in the seven weeks since the financial yearend had continued the improvement trend, the company said.

‘‘We do not expect the quantum of profit improvement of this past year to reoccur in the short term, . . . we anticipate we will revert to our normal levels of revenue and profit growth.’’ —