14 Nov 2018

Mainfreight's overall profit up 22 percent

1:20 pm on 14 November 2018

Mainfreight has reported a strong first half result with an improved performance across all of its international businesses and record levels of freight in New Zealand.

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Photo: Wikimedia Commons

The transport company's first half net profit rose nearly 31 percent to $55.9 million in the six months to September, compared with $42.2m the year earlier.

Revenue rose close to 17 percent to $1.44 billion, with the international businesses in Europe, North America, Asia and Australia contributing 76 percent, or $1.09b.

Managing director Don Braid said the air and ocean division contributed significantly to both revenue and underlying profit and was expected to contribute more over time.

The group's overall underlying profit rose 22 percent to $108.3m, with New Zealand contributing $45.4m, while the international divisions contributed $62.9m.

He said the outlook was positive for the second half, with momentum in all business units, and a strong performance in the New Zealand market.

"To have all regions contributing improved financial and operational results is pleasing.

"Therefore it is our expectation that financial performance will continue to be better for the full year, delivering another improved full year profit," he said, adding that land and building projects were generally progressing well with capital costs in line with expectations.

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