Logistics company Mainfreight is expected to post a hefty lift in its net profit when it reports its annual result this week - boosted by the acquisition of European logistics company Wim Bosman last year and by strong divisional performances from its New Zealand and Australian operations.
Mainfreight bought Wim Bosman - one of the largest privately owned, integrated transport and logistics providers in the Netherlands and Belgium - in April last year for $205 million, funded entirely by debt.
Rob Mercer, head of research at Forsyth Barr, said he expected Mainfreight to report a 50 per cent increase in earnings before interest, tax, depreciation and amortisation (Ebitda) for the year to March to $138 million, with Wim Bosman accounting for about $31 million.
At the Ebitda level, Mercer expected the Australian division to report a 40 per cent increase, and the New Zealand division a 10 per cent increase. Improvements are also expected from the company's US operations.
Mercer expected a 40 per cent increase in the company's profit before abnormals to $66 million.