Mainfreight drives through tough conditions to strong half-year finish

Mainfreight HY23 revenue rises to $3 billion. Photo / Supplied

Global transport and logistics company Mainfreight has delivered on half-year expectations and market guidance, posting a 66 per cent lift in operating profit to $301.7 million on a revenue rise to $3 billion.

The Auckland-based company said positive contributions from all its five global regions resulted in net profit of $217m, up $86m or 66 per cent.

Revenue lifted $729m or 32 per cent on the previous corresponding period for the six months to September 30.

The company will pay an interim dividend of 85c per share, an increase of 54.5 per cent on the corresponding 2022 financial period.

Adjusted for foreign exchange, group revenue was up 26.3 per cent and profit before tax up 57.8 per cent. Net profit showed an increase of 57.7 per cent on the previous period.

The company said all three operations - air and ocean, transport and warehousing - from the five regions made significant contributions to the result.

But it expected “a moderation” in air and ocean performance as international seafreight rates declined.

Offsetting this, the company said it continued developing capabilities with added-value services and growth across trade lanes around its network.

Looking ahead, the company said trading after the half year, through the five weeks of October and into this month, had recorded a 2 per cent increase in revenue with profit before tax up 11 per cent.

“We continue to be confident of trading conditions for the remainder of the financial year, albeit cognisant of economic headwinds and declining seafreight rates and volumes leading into the new year. We remain focused on increased growth, with all divisions continuing to see new customer opportunities,” the company said today.

“Accordingly we continue to invest in our network infrastructure for the long term across all regions.”

Mainfreight will announce its results for the full 2023 financial year on May 25 next year.

It expected to provide a trading update at the beginning of February.