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Mainfreight makes hay as pretax profit rockets 78%

11th November 2021 By Bridget O'Connell | bridget@foodticker.co.nz | @foodtickernz

International diversification and global supply and demand imbalance have seen transport and logistics company Mainfreight post a 78% surge in pretax profit to $181.99m for the half year.

Mainfreight’s interim profit has jumped 78%.

The New Zealand-headquartered company, led by managing director Don Braid, posted a net profit of $130.81m for the six months to September 2021, up 79% on the previous corresponding period, with all five regions – New Zealand, Australia, Europe, Asia and the Americas – contributing strongly to the improved financial performance.

The leap came on the back of a 41.4% increase in half-year revenue to $2.27bn for the period.

Mainfreight said it was “pleased” with the result, “particularly in light of supply chain congestion and ongoing lockdown disruptions across most markets”.

“Air & Ocean revenue performance in all regions has increased because of higher air and sea freight rates and an increase in freight tonnage as a result of market share gains and consumer demand,” the company said.

This division saw global interim revenue climb 72.2% to $1.15bn, and profit before tax jump more than 200% to $86.89m.

Mainfreight said it did not see any change to the current conditions in the short-term.

“Capacity shortages and customer demand remain at elevated levels, particularly across ocean freight requirements for most global trade lanes that we are involved in servicing,” the Auckland-based company said.

“In turn, this is increasing demand for airfreight services across a depleted air network due to a lack of passenger flights, and the resulting shortage of belly space for airfreight tonnage.

“Port congestion is exacerbating the ocean freight supply issues with in excess of 600 vessels on average waiting outside the world’s ports, pending discharge. Container equipment shortages add to the situation.”

Mainfreight added that it expected that “the imbalance of supply and demand will see supply chain congestion remain into the near future, with freight rates similarly remaining elevated”.

In New Zealand, the group made revenue of $498.45m – up 31.6% – and saw pretax half-year profit rise 28.2% to $48.07m.

It has promoted the head of its New Zealand transport division, Carl George, to replace outgoing New Zealand country manager Craig Evans, who is leaving the business at the end of January 2022 after 34 years with the group.

 

 


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