Mainfreight (MFT) H2 2024 earnings summary

Executive summary

• FY24 revenue was NZ$4.72b, down 16.9%; PBT was NZ$395m, down 32.7%.

• Net profit before abnormals was NZ$278m, down 35%; net profit after NZ$69m of abnormals was NZ$208m.

• Performance improved satisfactorily in New Zealand and Australia, while Asia, the Americas and Europe disappointed.

• Volume improved as new customer wins grew and destocking appeared complete; management said results were in line with expectations but should have been better.

Financial highlights

• Revenue NZ$4.72b, down 17%; PBT NZ$395m, down 33%.

• Net profit before abnormals NZ$278m, down 35%; after NZ$69m of abnormals, net profit was NZ$208m.

• Transport revenue NZ$2,188.88m, down 2.4%, and PBT NZ$172.47m, down 24.5%.

• Warehousing revenue NZ$784.79m, up 4.6%, and PBT NZ$59.65m, down 8.7%.

• Air & Ocean revenue NZ$1,744.12m, down 35.0%, and PBT NZ$163.26m, down 44.4%.

Outlook and guidance

• New Zealand and Australia trading post year-end was satisfactory; Asia was returning to pre-congestion development.

• Improvement in the Americas is expected to take time, particularly in Transport; Warehousing and Air & Ocean were satisfactory.

• USA and European trade lanes showed initial volume and rate increases; sales pipelines and sales activity were satisfactory across markets.

• Europe Transport volumes were improving, but work remained in France and Eastern Europe; Warehousing utilisation remained below desired levels.

• Trading post year-end was mixed across regions and products; management remained confident in medium- to long-term growth opportunities.