Mainfreight reports mixed half-year: Revenue up, PBT down

Mainfreight Limited reported half-year revenue of NZ$2.61 bn, an increase of 2.1% compared to the prior year. However, profit before tax (PBT) fell by 18.3% to NZ$131.72m, and net profit decreased by 18.5% to NZ$93.38m. Operating cash flows improved, rising from NZ$191.7m to NZ$209.6m, attributed to better debt collections. Directors approved an interim dividend of 85 cents per share.

The company's performance was impacted by the discontinuation of certain project activities that contributed NZ$98.8m in revenue and NZ$12.4m in PBT in the prior half-year. Divisional performance varied, with New Zealand revenue up 3.9% to NZ$575.6m, but PBT down 7.4% to NZ$44.1m due to increased property costs. Australia saw revenue decrease by 2.9% to AU$736.8m and PBT by 3.8% to AU$58.6m.

Europe's revenue grew by 5.4% to €307.2m, but PBT dropped significantly by 31.9% to €9.3m, influenced by higher casual labor costs and property disposal. The Americas experienced a 9.7% decline in revenue to US$313.2m and reported a PBT loss of US($2.3m), driven by challenges in its Transport and CaroTrans divisions.