Mainfreight posts 37pc profit rise

Mainfreight posted a 37 per cent rise in nine-month profit yesterday, driven by its New Zealand domestic businesses, which will be further boosted by a new contract with retailer Farmers.

The company entered the home delivery market for the first time with the Farmers contract, which would be fully operational by April, said managing director Don Braid.

Mainfreight reported a $6.3 million profit in the nine months to December 31, up from $4.6 million in the same period last year and achieved on a 7.2 per cent increase in revenue to $325 million.

The company made more than three-quarters of its profit before interest, tax, depreciation and writeoffs in the nine months from the New Zealand transport, logistics, daily freight and chemical carrying units.

Its domestic Australian business made a loss, though Lep Australia and MF International, which operate internationally from an Australian base, increased earnings.

Braid said the company was close to naming a new national manager in Australia to replace Chris Dunphy, who resigned.

The outlook for the rest of the financial year remained ahead of last year, said Braid, who cited volatile fuel costs as a serious issue.