Freight firm boosts market share

Mainfreight will be investing heavily in railway freight. Picture / Sarah Ivey

The head of Mainfreight says "good aggressive sales" led the listed logistics company to increase its market share in the third quarter of this financial year.

In its latest results, the company reported a net profit before abnormals of $27.26 million for the nine months to December 31 - down 7.6 per cent on the previous year.

Consolidated sales revenue for the nine months was $842 million, down 15.2 per cent on the previous year and 16.6 per cent if foreign exchange adjustments are excluded.

Mainfreight group managing director Don Braid said the company was quietly confident. "We're not ones to pop our heads above the parapet, but certainly from our point of view it's a good result ..."

Braid said some receiverships and poor performance among Mainfreight's competitors in the sector had helped the business.

"The Australian economy has gone really well ..." Ebitda (earnings before interest, taxation, depreciation and amortisation) in Mainfreight's Australian domestic freight operations improved by 60 per cent to $11.79 million from the prior year's $7.37 million.

Braid said the air freight out of New Zealand was also looking positive. Ebidta in its NZ international division was up by 22.2 per cent to $3.45 million.

Revenue in its US operations declined year-on-year by 31.2 per cent to $140.43 million, while revenue in its Asian operations remained relatively flat, with an increase of 0.7 per cent to $19.75 million.

Braid said Mainfreight would invest in railway freight, and was planning to build facilities on land in Palmerston North, Wellington, Blenheim and Invercargill.

Mainfreight shares closed up 10c at $5.90 yesterday.