Mainfreight staff share $27m bonus after record result

NZ Herald

28 May, 2019 05:00 PM2 mins to read

Mainfreight staff bonuses are up 31 per cent this year. Photo / File

Eligible Mainfreight staff will receive a share of a $27.24 million bonus after the global freight and logistics firm posted its best-ever annual result.

The bonus is an increase of $6.55m, or 31 per cent, on the prior year's payment, according to the company's full-year results filing.

The company said it delights them to be able to allow their staff to share in the success of the company.

"Our improved financial result will again allow us to pay a discretionary bonus to our people who meet the criteria set by the Board of Directors."

Auckland-based Mainfreight's net profit rose 28 per cent to $137.6m in the year to March 31 versus $107.7m in the prior year. Revenue lifted 12.9 per cent to $2.95 billion and its earnings before interest, tax, depreciation and amortisation rose 19.5 per cent to $257.1m.

Looking ahead, it said "we remain confident that the momentum of the year just concluded will continue." It noted, however, "there is a level of uncertainty in global trade and slowing economies".

"Whilst not immune to such external effects, we continue to position ourselves to counter the headwinds and look for ongoing growth."

Mainfreight will pay a final dividend of 34 cents a share on July 19 with a July 12 record date, taking the full year dividend to 56 cents a share, up 24.4 per cent on the year.

In New Zealand, ebitda was up 12.2 per cent to a record $110.6m and it now has a branch network across all three services which extends from urban centres into regional areas with populations under 20,000.

"Delivery times and quality have improved and we have been able to secure new customers, including providing import and export services from many regional locations never before serviced by Mainfreight," it said.

In Australia, ebitda was up 11 per cent to A$55.4m after a "relatively slow start," it said.

In Asia, revenue was down 11.2 per cent to US$74.5m but ebitda lifted 28.2 per cent to US$6.3m on improved margins. It is now in eight countries and has 21 branches in Asia. It is looking to add a further six regional sales desk locations in second tier cities across the region, boosting sales reach and capability.