Mainfreight revenue passes $5 billion, delivers record profit

Mainfreight operates in five regions around the world. Photo / File

Global logistics company Mainfreight has turned in its best financial year yet, posting an 88.9 per cent lift in net profit and hitting $5 billion-plus revenue.

Net profit was a record $355.4 million, up $167.3m on FY21. Revenue at $5.22b was up $1.67b or 47.2 per cent.

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

The Auckland-headquartered transport company will pay a discretionary profit bonus to its team totalling $94.2m, up 114.7 per cent on the previous year.

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

Costs associated with the closure of the Russian operation due to war is included in the result.

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 per cent of the group total.

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

While the result included a significant increase in contribution 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 $503.8m, up from $376.3m.

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

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

Gearing ratios continued to improve, at 0.1 per cent compared to 8.4 per cent.

During the year, net capital expenditure totalled $189.1m, with expenditure for land
and buildings accounting for $109.4m, warehousing racking and fit-out costs of
$35.3m, plant and equipment of $27.4m, and information technology of $17m.

Expected capital expenditure across the next two years was $540m, of which
property would be $450m. 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 its revenues, the performance of its air and ocean division also reflected growth in the customer base, due to its ability to secure tightly-contested space.

The transport and warehousing divisions across all five regions had also improved their financial performances.

Trading in the seven weeks since the financial year-end had continued the improvement trend, the company said.

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