Mainfreight boosts net profit 2.5pc

Mainfreight lifted full-year net profit 2.5 per cent to $36.4 million, as it cut costs while freight volumes deteriorated in most of its business units.

Total sales for the year to March fell by 10.5 per cent to $1.13 billion, from $1.26 billion the year before. Excluding foreign exchange, the decline was 10.3 per cent, Mainfreight said yesterday. Cost-cutting saved $32.4 million on the previous year.

As well as managing cost structures better, the company sought to improve margins, expand market share by boosting sales activities and to improve quality and levels of service, Mainfreight said.

Despite the economic difficulties of the past year the company continued to open new branches in China, New Zealand and Australia, and identify new areas where it could extend services.

A final dividend of 10c per share takes the full year's dividend to 18.5c.

- NZPA