Mainfreight keeps on trucking with $107m profit

Transport heavyweight Mainfreight has posted a $107 million profit, despite the ongoing effects of the Kaikōura earthquake on roading infrastructure.

Photo: Wikimedia Commons

New Zealand‘s biggest listed transport company, Mainfreight‘s profit was up six percent on the last financial year.

Sales revenue from its worldwide business for the year ended 31 March improved 12 percent, to $2.6 billion.

Mainfreight managing director Don Braid said revenue growth had been strong in most countries the company operated in and would create a good foundation for more growth.

“Australia was the highlight and New Zealand just keeps on doing its thing.”

The company had invested in infrastructure in Australia and had been taking some market share, Mr Braid said.

“We are very serious about what we have in Australia and what we can do so our quality level has improved.

“Consequently the revenue has flowed accordingly.”

In New Zealand, sales revenues improved by 9.3 percent to $666m.

That was despite the ongoing effects of the Kaikōura earthquake in November 2016, where inter-island freight links to and from the South Island were restricted to limited rail services.

The company had had a lot of regional growth and had been able to get around some of the issues associated with the earthquake, Mr Braid said.

“As we have grown our volumes here, we have been able to intensify our network and we will continue to open more freight facilities.”

$1.95bn of the company‘s revenue is now earned off-shore.

“Europe, Asia and America are going okay,” Mr Braid said.

“They are profitable and are providing us with a good base of which to grow a truly global business.”

He described Mainfreight as a very good business with great people.

The company‘s workers would benefit from the good financial result and will receive an increased bonus worth nearly $20.7m.

“It‘s important that those putting in all of the hard work are rewarded,” Mr Braid said.