Its New Zealand and Australian divisions provided the cornerstone for earnings growth, while United States, Asian and European operations performed below expectations.
Revenue for the year to March was up from $1.3 billion to $1.8 billion, earnings before interest, tax, depreciation and amortisation (Ebitda) rose more than 50% to $138 million and after-tax profit rose almost 40%, from $47.2 million a year ago to $65.8 million.
In early 2011, Mainfreight bought Netherlands-based Wim Bosman Group, with 14 branches in six European countries, for 110 million (about $NZ205 million, at the time).
Managing director Don Braid said in a statement yesterday Bosman had a "challenging" second-half performance with warehousing down and poor freight performance in Belgium, which meant an earn-out payment of $17 million was instead added to profit, totalling $82.8 million.
"Nevertheless, the significance of establishing ourselves in Europe should not be underestimated," Mr Braid said.
In the company's outlook, he highlighted long-term success, not quarterly results, was the target, with stronger economies at times offsetting poor divisional or regional performances, saying Mainfreight would "redouble" its efforts in the northern hemisphere.
Mainfreight increased its full-year dividend to 26c, with the final dividend of 14c, up 6c on a year ago. Following the announcement yesterday, its shares were up 3.4% at $9.80, but on small volumes.
Total revenue for the New Zealand group, of domestic, international and warehousing, was up 8.8% to $449 million, and while Australia group revenues increased 5% to $A385.4 million ($NZ497 million), Mr Braid said Asia performed "poorly" and Europe "did not meet expectations", with each area's respective Ebitda down almost 16% and 15%.
While the US performance of business units CaroTrans and Mainfreight was "modest" (the latter having been recently split into domestic and international divisions), combined revenues were up 7.8% to $US332.3 million ($NZ436.5 million) and Ebitda rose almost 43% to $US15.3 million.
Craigs Investment Partners broker Peter McIntyre said the 30% dividend increase reflected Mainfreight's confidence for the future, noting it had a good track record "bedding down" new acquisitions.
Forsyth Barr broker Peter Young said the 39% profit rise to $65.7 million gave a true reflection of the uplift in earnings growth for shareholders, following the fully debt-funded acquisition of Bosman group.
Total net debt rose from $47.6 million a year ago to $248 million, largely because of the $205 million Bosman acquisition and capital expenditure of $85 million.
Mr McIntyre said the rising debt was of little concern, as Mainfreight remained "well within" its banking covenants, especially as its earnings were regularly beyond $1 billion.
