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Mainfreight expects momentum to continue

Article – BusinessDesk

June 21 (BusinessDesk) – Mainfreight, which last month reported a record full-year profit, told investors and analysts it expects momentum to continue.Mainfreight expects momentum to continue, Braid tells investors

By Margreet Dietz

June 21 (BusinessDesk) – Mainfreight, which last month reported a record full-year profit, told investors and analysts it expects momentum to continue.

The Auckland-based transport and logistics company, which currently has 247 branches in 22 countries, predicted “short-term impacts” on unadjusted earnings before interest, tax, depreciation and amortisation as new sites are delivered through 2019/20, according to a copy of its presentation to analysts and investors in the Netherlands. Ebitda rose 9 percent to $215.4 million on a 12 percent gain in revenue to $2.62 billion in the year ended March 31.

“Emphasis remains on strong revenue and ebitda improvement,” Mainfreight managing director Don Braid said. “Expect momentum to continue.”

Braid pointed to Japan, the Middle East and Scandinavia as “areas under consideration” for expansion.

Mainfreight also noted “further expansion opportunities in Eastern Europe” once its profitability in the Benelux region is “acceptable.”

The stock slipped 0.3 percent to $27.90 and has climbed 24 percent in the past year. That compares with an 18 percent return for the S&P/NZX 50 Index in the same period.

(BusinessDesk)

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