Mainfreight revenue takes hit in Australia, globally

A Mainfreight B-double at twilight.

Satisfactory improvements across Australia and New Zealand have been contrasted with “disappointing” results in international territories for Mainfreight upon the release of the company’s financial statement to 31 March 2024.

Although Mainfreight saw an increase in its footprint adding six new branches to its 337 worldwide, net profit before abnormals decreased significantly by 35 per cent.

Revenue also dropped 17 per cent to $AUD4.36 billion.

The result was is in line with the global transport and logistics providers expectations as freight volumes and international sea and air freight rates normalised from the peaks experienced during 2022/2023.

“We are satisfied with the momentum and progress in New Zealand and Australia, but remain disappointed with our performances in Asia, USA and Europe, where our market share remains small,” the company said in a statement.

A net Capex of $254 million was reported for the 12 month period with $128 million allocated to property which includes its rear loading initiative at the Brisbane Cross Dock Project where 34 rear-loading dock doors with a four-sided dock incorporating some allowance for side-loading is not yet underway.

Construction is scheduled to commence mid-2024, with completion anticipated for early 2026.

While the company was committed to acquiring land and property it was doing so in accordance with a mandate built upon more efficiencies met across less square metres.

In Australia, where revenue dropped 8.7 per cent to $1,294,221, $104 million would be allocated to property and fit-out costs for Financial Year 2025-2026.

The preliminary full year report on consolidated results also confirmed there was $148 million in bank debt from a total available facility of $501 million.

Across the company, transport profits-before-tax took a hit down 24.5 per cent to $172.47 million while revenue contracted slightly to $2,188.88 million, a decrease of 2.4 per cent.

Warehousing revenue, however, was up 4.6 per cent to $784.79 million.

“Our development across Australia has been significant, despite the normalising of freight volume and freight revenues during the year,” Mainfreight said in a statement.

“Our Transport network is considerable and has the reach and capability to provide meaningful growth. Some regional branches are yet to provide profitability, but such is the consequence of network development.

“We continue to gain LCL freight market share and are now providing services across rail, full truck, and wharf cartage services.”

Warehousing capacity has increased to 355,000 pallets across Australia, an 18 per cent increase.

The newly commissioned site at Moorebank, Sydney is setting the example of size, capacity, automation, and sustainability initiatives Mainfreight said in a statement.

“We have grown a larger business, attracted more customers and increased our operational capacity. However, our ability to convert this to more meaningful long-term profitability during this past year has been disappointing,” the company said.

“No matter the prior year’s record performance, we should have performed better.”

The Directors have approved a final dividend of 87.0 cents per share fully imputed at the 28 per cent company tax rate.

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