International work underpinned a strong result for Mainfreight - which is now eyeing expansion into Europe and South America - booking increased profits, sales and strong freight volumes.
Total group revenue for the nine months to December broke through the $1 billion barrier, up 20% on the same period a year ago at $1.01 billion.
Mainfreight yesterday reported a 27% increase in after-tax profit at $34.6 million, which included $7.7 million in heldover bonuses from last year.
Shares in Mainfreight yesterday were surprisingly down 2% at $8.21; possibly through some profit-taking by shareholders.
Mainfreight group managing director Don Braid said offshore sales accounted for 70% of total revenue. Of an 18% increase in earnings before interest, tax, depreciation and amortisation (ebitda) to $66.9 million, almost 50% was earned from offshore operations.
Mainfreight operates across New Zealand, Australia, the United States and Asia.
Mr Braid said progress was continuing on European and South American expansion plans.
The results reflected a "satisfactory trend" of earnings and revenue seen earlier in the year, he said.
The fourth and final quarter was continuing the trend, which has prompted "expectations of a much improved year-end result, prior to abnormals"; which will be non-cash deferred tax expenses triggered by Government legislation, he said.
Craigs Investment Partners broker Peter McIntyre said the "strong result" reflected Main-freight's "continued generation of fresh international growth".
"Mainfreight is one of New Zealand's unheralded companies. It is clearly well placed to expand globally," Mr McIntyre said.
Forsyth Barr broker Peter Young said ebitda was up 18% to $67 million, but the $7.7 million reinstatement of staff bonuses reflected the quality of the result.
He said the third quarter wais Mainfreight's largest and improvements were made across almost every division, with only the Australian International division's ebitda being "flat" at $3.8 million.
