Mainfreight Limited Analysis

Overview

The company's origins go back to 1978 and listing was achieved in June 1996 following sale of 60% of the shares on issue by founder Bruce Plested and Neil Graham at 96c each. The company is a specialist freight forwarding and distribution business, with interests also in managed warehousing, transportation of hazardous substances, air & ocean international freight, full truckload freight and Global Supply Chain Logistics. Based in Auckland, the group's business units include: Domestic transportation and Managed warehousing in NZ, Australia, Americas and Europe, air & ocean international transportation in NZ, Australia, Americas, Europe and Asia with agents world-wide and wholesale air and ocean freight.

Expansion in the late 1990’s included a series of acquisitions including a 75% stake in Lep International (NZ), Lep Air International in Australia and Australian express transport operator K & S Express plus Express Lines, an Australian Air & Ocean operator with interests in Asia. In July 2003, Mainfreight launched a takeover bid for Owens Group, ending up with 79.6% after Toll Holdings acquired a minority position. In May 2005, it completed a full takeover of Owens Group when Toll sold its 11.8% stake. In April 2007 it sold Pan Orient Project Logistics and its 75% shareholding in LEP (New Zealand and Australia) for over AU $83m.

The 2008 year was significant for Mainfreight with a US$53.7m acquisition of US based Target Logistics, a freight forwarding and logistics company; MFT also acquired remaining interests in their Asian operations giving them 100% ownership.

In April 2011 Mainfreight made its largest acquisition to date, a €110.0m acquisition of Europe based (Netherlands) Wim Bosman Group. European operations have now been rebranded as Mainfreight.

In the 2024 financial year revenues are NZ$4.72 billion with 337 branches in 27 countries, and with 10,644 team members.

Performance

The following information was extracted from Mainfreight Limited's full year results, released on 29 May 2025:

Financial result for the twelve months ended 31 March 2025 (Unaudited)

Commentary

Mainfreight is pleased to confirm our full-year financial result to 31 March 2025. This result is in line with our expectations and as signalled during our market update issued on 2 May 2025.

Result Summary

Revenue $5.24 billion Up 11%

Profit Before Tax $383.6 million Down 3%

Net Profit $274.3 million Up 31%

• Adjusted for foreign exchange impact, Group Revenue is up 9% and Profit Before Tax is down 4%.
• Operating cashflows improved from $505 million to $584 million.
• A final dividend of 87.0 cents per share has been authorised by the Board of Directors, payable on 18 July 2025.
• Net profit in the prior year was impacted by a non-cash abnormal tax accounting adjustment on buildings.

This is a satisfactory result, assisted by a pleasing performance from our Australian operations, which has become our largest revenue and profit contributor.

Sales revenue increases were achieved in all five regions and across our three divisions: Transport, Warehousing and Air & Ocean. Asia, the Americas and New Zealand saw profits decline.