Mainfreight reward staff with $20.7m bonus

5 MinutesBy NZ Trucking magazineMay 30, 2018

Mainfreight has reported a record profit for the year to March 2018 and is rewarding staff worldwide with a big bonus.

A statement released by Mainfreight said the result allowed the company to pay its largest-ever discretionary bonus to its staff, up 7.4% to $20.7 million.

“In New Zealand and Australia, we have always paid above the minimum and living wage levels, however we have chosen to further lift salaries for those at the lower end of our pay range, with an additional boost over and above our usual annual salary increase this year,” the statement read.

Sales revenue for the year improved 12.2% to $2.62 billion, an increase of $285.27 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) improved 9.0% to $215.42 million.

New Zealand sales revenues improved by 9.3% to $666.16 million, with EBITDA performance improving 8.4% to a record $98.63 million. This was despite the ongoing effects of the Kaikoura earthquakes of November 2016, where inter-island freight links to and from the South Island were restricted to limited rail services and demanded more road and coastal shipping options.

Mainfreight‘s logistics business increased its warehouse footprint in New Zealand to 145,000m2 providing capacity for 150,000 pallets. Additional sites in Auckland, Tauranga and Hamilton have been identified to cater for further growth.

The statement said the company‘s transport division was under the greatest pressure. Congestion, with increased freight tonnage at its sites in Auckland, Tauranga, Rotorua, Palmerston North, Wellington, Nelson and Dunedin, had shown those facilities were inadequate. Land has been purchased in all these areas for construction of new facilities to offset the congestion issues. There are also plans to intensify the New Zealand branch network with further regional development.

Mainfreight‘s air and ocean division recorded increased airfreight and seafreight tonnage across both imports and exports, including perishable airfreight exports. Capacity through the company‘s new Christchurch operation and improvements being made to its Auckland facilities will see further capability and commitment for the expected growth.

Australia recorded its best-ever financial result, which was the most improved of all regions with sales revenues up by 16.6% to AU$623.77 million. EBITDA improved 18.0% to AU$49.92 million.

Mainfreight expects the current levels of growth to be sustainable, and said capital investment in new land and buildings across Queensland, New South Wales, Victoria, South Australia and Western Australia would continue in an effort to provide appropriately-sized facilities to cope with the logistics and distribution tasks required of them.

The record result was seen as a fitting tribute as the company celebrated its 40th year in business.

“The decisions we have taken through the year to invest considerably in the intensification of our network, and to develop facilities and infrastructure to cope with ongoing growth aspirations, are significant and a reflection of the confidence we have in our people and strategies,” the statement said.

“We expect to continue to extend our global footprint, and where openings arise we will take the opportunity to establish ourselves in more countries. We are confident of our development and growth for the future – the next 100 years.”

A final dividend of 26 cents per share will be made on 20 July. This takes the full dividend for the year to 45 cents per share, a 9.8% increase year on year.

Mainfreight will release its financial results for the first half of the 2019 financial year to the market on 14 November 2018.