9th November 2023 Mainfreight
The transport and logistics company saw net profit for the period to 30 September drop 42.6% to $124.55m, reflecting a downturn in all its markets and across all its operations.
Mainfreight’s chief financial officer, Tim Williams, is retiring from the transport and logistics company post its year-end results in June 2024.
Mainfreight boss Don Braid struck a downbeat note at the company’s annual shareholder meeting, warning of “a sobering year or more ahead of us as we cope with a global recession”.
Mainfreight says it is adopting a more prudent approach to cost management and will remain sales-focused in the face of an incoming slowdown.
Mainfreight posted an 8.8% increase in revenue to $5.68bn in its annual result, with a pre and post-tax profit both up 20% to $587.4m and $426.5m respectively.
Logistic company Mainfreight is on track for a “satisfactory” improvement in its full year results to 31 March 2023, but warned of softening revenue and profit before tax levels for both the USA and Asia.
Mainfreight chief executive Don Braid said the company is expecting to invest $707m across the next two years into its global logistics portfolio.
“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,” the company said.
Mainfreight first half performance is on track to come in ahead of expectations, with its revenue forecasts jumping 32.5% to just over $3bn.
Mainfreight’s share price closed up 6.3% at $75.50 yesterday after an upbeat update at its annual meeting on Thursday.
The transport and logistics company delivers an 89% leap in annual net profit with record revenue topping $5bn.
The company also said today that its Ukraine office was closed as a result of Russia’s invasion of the country two weeks ago.
Its NZ vaccine mandate has kicked in and navigating constraints due to Omicron-enforced absenteeism is cited as its top priority.
Supply and demand imbalance as well as a diversified global footprint work in favour of logistics company Mainfreight.
Mainfreight’s New Zealand country manager, Craig Evans, has resigned and is to leave the business at the end of January 2022.