KEY POINTS:
Freight and logistics company Mainfreight today reported its net profit rose 83 per cent to more than $100 million, boosted by one-off gains from asset sales.
Mainfreight posted a March year net profit of $101.6m, which included a $60.5m profit from selling its Lep and Pan Orient firms.
The net profit from continuing operations before one-offs was up 15.3 per cent to $40.8 million, the company said.
The company said trading was strong going into the new financial year.
The company lifted its fully imputed final dividend to 10 cents per share from 8 cents.
Managing director Don Braid said negotiations to acquire a substantial international freight forwarding operation in Australia were progressing well, with an announcement imminent.
Ebitda (earnings before interest, tax, depreciation and amortisation) rose 15.2 per cent to a record $74.3m.
Total revenue from continuing businesses increased by 20.2 per cent to $911.7m.
Braid said trading conditions in the fourth quarter were much improved on the previous year, with ebitda results up 19.5 per cent and that had continued into the current quarter.
He said the higher price of fuel would create difficulties.
"Offshore we expect to continue to see growth in all operations. Australian domestic returns are likely to remain neutral during the first half as costs for growth are absorbed."
Apart from Australia, where costs were incurred to prepare for further growth, all operations had strong performances, he said.
Braid said the company had also made good progress in strengthening its global logistics business.
"The increasing diversification of our revenue streams across many countries, trade lanes and activities provides a natural protection for our earnings."
Re venues from outside of New Zealand now exceeded 57 per cent and that ratio would continue to rise.
While trading conditions in the New Zealand economy softened during the year, both domestic and international trade continued to improve over the year.
New Zealand division ebitda rose 10.6 per cent to $37.38m with revenue up 4.2 per cent to $281.36m and market s hare gains in the first quarter of the new financial year would see further gains.
Braid said the decision by the Government to repurchase the rail network and infrastructure was inevitable.
"New Zealand now has the opportunity to manage this valuable core asset back to efficiency and profit."
However, he said aspects of the deal were "blatantly wrong and require substantial change to reduce the risk of anti-competitive behaviour".
Ebitda for Mainfreight's International business improved 13.6 per cent to $4.9m despite decreasing export volumes and revenue falling 8 per cent to $103.9m.
Australian domestic revenues rose 19.2 per cent to $148.7m but ebitda declined 1.5 per cent to $11.85m with the fourth quarter down 9.6 per cent. Ebitda in the Australian international division rose 17 per cent.
Braid said Mainfreight's presence in the United States dramatically increased with the acquisition of Target Logistic Services and the increasing growth from CaroTrans.
CaroTrans revenues rose 12.3 per cent and ebitda rose 9 per cent to $7.8m.
Target Logistics had revenues for the five month period of $96m with an ebitda of $2.5m.
In Asia revenues rose 18 per cent to $17.7m for ebitda of $2.8m.
Mainfreight shares closed at $6.75 yesterday, having ranged between $7.70 and $5.45 in the past year.
- NZPA
