Revenue, profit and dividends have all surged for trucking company Mainfreight which has posted a more than 50% increase in after-tax profits, with gains in most divisions.
Mainfreight's unaudited result for the six months to September, compared with the corresponding period a year ago, saw sales revenue increase by more than 20% from $535.8 million to $644.9, after-tax profit improved by 51.7% to $16.45 million, and its dividend was increased 0.5c to 9c.
After the announcement, Mainfreight shares yesterday fell slightly to $7.30 - after a strong run of 36% gains in the past year.
Group managing director Don Braid said that in general, business performance in most divisions improved on the year prior.
"Trading into our third quarter shows a continuing trend with a number of divisions well ahead of prior years," he said in a statement.
He described the six-month result as "satisfactory' when compared with last year's, but said it was still below expectations in several markets.
Offshore sales, outside New Zealand, now account for 70% of Mainfreight's total revenue.
Craigs Investment partners broker Peter McIntyre said the half-year report was "very good" and Mainfreight had indicated "strong guidance" ahead for the third quarter's trading.
Mr Braid said the sales activity and weekly trading results during October and November were further improved and had raised expectations for a strong third quarter.
In New Zealand domestic freighting, sales revenues increased 6.6% to $136.83 million while the New Zealand International division saw sales revenues increase 19.2% to $57.33 million, as export and import volumes strengthened.
He said general trading conditions of United States operations continued to improve with total sales revenues increasing by $46.84 million, or 28.4%, to $211.53 million.
In Australia, earnings before interest, tax, depreciation and amortisation, were on par at $6.02 million, but sales revenues lifted 26.3% to $103.91 million.
"While cost structures remain under tight control, gross margins have been difficult to improve in what has become a very competitive trading environment," Mr Braid said.
There was continued growth around the Asia region with sales revenues improving 59% to $19 million, an improvement of $7.05 million on last year.
The Singapore office was now operational, and was expected to begin receiving freight from the US in early-December, he said.
"Growth of trade from China to the US now sees this trade-lane as one of our largest in the region. Further emphasis is being placed on growing volumes to and from South America, Europe, and of late, India," Mr Braid said.
