The result has prompted stock brokers and analysts to sharpen up their pencils in preparation for downgrades.
While managing director Don Braid was ''disappointed'' with the half-year result, he was buoyant about second-half trading, and expected an improvement in revenue and margin performance and predicted a better full-year result than last year.
Revenue for the six months to September was up 12.9% to $1.114billion, earnings before interest, tax, depreciation and amortisation (Ebitda) improved 3.3% to $71.58million, but excluding foreign exchange effects which were down 2.1%, while after-tax profit declined, down 1.5% to $33.14million.
''This is less disappointing than it appears at first sight, as it is largely a result of increased costs ... incurred to assist our growth development across the business, albeit with effects of softer trading in the domestic Australian and US markets,'' Mr Braid said in a statement.
He noted cost increases occurred within the domestic businesses, ''with labour, facilities and infrastructure a significant part of our day-to-day operations, while Mainfreight's Air & Ocean businesses, in all regions, saw significant growth in revenue and profitability''.
Mainfreight shares were down 5.6% at $15.10, following the announcement.
Forsyth Barr broker Suzanne Kinnaird said it was a ''disappointing'' result.
Cost pressures had offset robust revenue momentum.
The result missed Forsyth Barr expectations and was ''somewhat inconsistent'' with management commentary provided at the annual shareholders' July meeting.
''With consensus currently implying more than 13% full-year net profit after tax growth, we expect sizeable downgrades to market expectations following this result,'' Mrs Kinnaird said.
Craigs Investment Partners broker Peter McIntyre said it was a ''weak result'', because of infrastructure costs and softer trading conditions in Australia and the US.
The result run-rate was below forecasts of Ebitda and adjusted after-tax profit growth of respectively 14% and 17%.
''While we expected a weak first half, this appears to be weaker than expected and does make achieving our full-year forecasts difficult,'' Mr McIntyre said.
MFT had historically under-promised and over-delivered.
''This is possibly the first instance in a many years that Mainfreight has under-delivered in an interim result and, as a consequence, the shares have been aggressively sold off,'' he said.
Mr Braid said the half-year result had disappointed the business.
Acceptable revenue and margin gains had been eroded by increased overhead cost structures.
''However, the majority of these costs have been incurred as we prepare the business for further growth,'' he said.
New and larger facilities have been built with improved, albeit more expensive equipment, and labour costs increased as the company developed operations ''for a significant period of growth globally''.
''Our expectations are for ongoing improvement in revenue and margin performance through the second half, together with better cost controls, to achieve an improved year-end result over the last financial year,'' Mr Braid said.
