Mainfreight Half Year Financial Results 30 September 2021
MAINFREIGHT LIMITED
Preliminary Half Year Announcement
For the Six Months ended 30 September 2021
Income Statement
For the Six Months ended 30 September 2021
Six Months EndedSix Months EndedYear ended
30 September 2021 30 September 202031 March 2021
Notesunauditedunauditedaudited
$000$000$000
Operating Revenue2,274,386 1,608,861 3,543,531
Interest Revenue‐ ‐ 307
Total Revenue2,274,386 1,608,861 3,543,838
Transport Costs(1,450,091) (953,205) (2,141,744)
Labour Expenses(422,422) (350,132) (723,444)
Other Expenses(115,962) (100,772) (211,836)
Earnings before Interest Costs, Tax, Depreciation, Amortisation
and Abnormal Items
285,911 204,752 466,814
Depreciation
of Right to Use Assets(59,160) (60,749) (113,938)
Finance Costs Relating to Lease Liabilities(7,572) (8,394) (16,225)
Other Depreciation & Amortisation Expenses(34,862) (30,602) (68,460)
Other Finance Costs(2,331) (2,742) (5,784)
Profit before Taxation181,986 102,265 262,407
Income Tax Expense(51,176) (29,348) (74,297)
Net Profit for the Period130,810 72,917 188,110
Earnings per share
Basic and diluted earnings
(cents per share)129.9072.41186.81
Net Profit for the Period130,81072,917188,110
Other Comprehensive Income for the Period, Net of Tax
Other comprehensive income to be reclassified to profit/(loss) in
subsequent periods
Exchange Differences on Translation of Foreign Operations(4,314) (8,555) (22,545)
Income Tax Effect162 (1,078) (2,782)
Net Other Comprehensive income to be reclassified to profit/(loss)
in subsequent periods
(4,152) (9,633) (25,327)
Other comprehensive income not to be reclassified to profit/(loss) in
subsequent periods
Revaluation of Land including Foreign Exchange Movements(625) 109 55,814
Income Tax effect‐ ‐ (5,324)
Defined Benefit Pension Provision(5) 15 (159)
Income Tax effect1 ‐ 40
Net Other Comprehensive income not to be reclassified to
profit/(loss) in subsequent periods
(629) 124 50,371
Other Comprehensive Income for the Period, Net of Tax(4,781) (9,509) 25,044
Total Comprehensive Income for the Period, Net of Tax126,029 63,408 213,154
The accompanying notes form part of these interim financial statements
Preliminary half year report on consolidated results (including the results for the previous corresponding half year).
The Listed Issuer has a formally constituted Audit Committee of the Board of Directors.
This report has been prepared in a manner which complies with generally accepted accounting practice and fairly
presents the matters to which
the report relates and is based on unaudited financial statements.
For the Six Months ended 30 September 2021
Statement of Comprehensive Income
MAINFREIGHT LIMITED
Balance Sheet
As at 30 September 2021
30 September 2021 30 September 202031 March 2021
Notesunauditedunauditedaudited
$000$000$000
Current Assets
Bank121,122 128,206 139,555
Trade Debtors600,974 388,783 489,246
Income Tax Receivable‐ 1,594 251
Other Debtors47,164 62,665 89,531
769,260 581,248 718,583
Non‐current Assets
Property792,887 682,286 755,566
Plant & Equipment169,005 126,067 162,597
Right of Use Assets573,952 577,060 567,956
Software58,398 52,507 53,510
Goodwill209,446 217,580 208,626
Other Intangible Assets1,440 3,012 1,607
Deferred Tax Asset18,751 15,389 18,461
1,823,879 1,673,901 1,768,323
Total Assets2,593,139 2,255,149 2,486,906
Current Liabilities
Bank‐ ‐ ‐
Trade Creditors & Accruals446,314 341,318 412,826
Employee Entitlements93,361 66,902 91,997
Provision for Taxation15,815 4,782 30,344
Lease Liability for Right of Use Assets126,068 123,221 118,158
Asset Finance Loans8,976 2,056 9,198
690,534 538,279 662,523
Non‐current Liabilities
Bank Term Loan205,937 239,475 210,000
Employee Entitlements3,567 3,288 2,922
Deferred Tax Liability7,204 6,589 6,571
Lease Liability for Right of Use Assets468,212 469,856 467,276
Asset Finance Loans21,924 2,152 22,568
706,844 721,360 709,337
Total Liabilities1,397,378 1,259,639 1,371,860
Shareholders' Equity
Share Capital85,821 85,821 85,821
Retained Earnings982,879 812,400 897,383
Revaluation
Reserve140,469 90,713 141,094
Foreign Currency Translation Reserve(12,812) 7,034 (8,660)
Defined Benefit Pension Reserve(596) (458) (592)
Total Equity1,195,761 995,510 1,115,046
Total Liabilities & Equity2,593,139 2,255,149 2,486,906
The accompanying notes form part of these interim financial statements
MAINFREIGHT LIMITED
Statement of Changes in Equity
For the Six Months Ended 30 September 2021
ForeignDefined
Asset CurrencyBenefit
Ordinary Revaluation TranslationPension RetainedTotal
SharesReserveReserveReserveEarningsEquity
$000$000$000$000$000$000
Six Months to 30 September 2021 (unaudited)
Balance at 1 April 202185,821 141,094 (8,660) (592) 897,383 1,115,046
Profit for the Period‐ ‐ ‐ ‐ 130,810 130,810
Other Comprehensive Income‐ (625) (4,152) (4) ‐ (4,781)
Total Comprehensive Income for the Period‐ (625) (4,152) (4) 130,810 126,029
Transactions with Owners in their Capacity
as
Owners
Supplementary Dvidends‐ ‐ ‐ ‐ (1,513) (1,513)
Dividends Paid‐ ‐ ‐ ‐ (45,314) (45,314)
Foreign Investor Tax Credit‐ ‐ ‐ ‐ 1,513 1,513
Balance at 30 September 202185,821 140,469 (12,812) (596) 982,879 1,195,761
Six Months to 30 September 2020 (unaudited)
Balance at 1 April 202085,821 90,604 16,667 (473) 773,720 966,339
Profit for the Period‐ ‐ ‐ ‐ 72,917 72,917
Other Comprehensive Income‐ 109 (9,633) 15 ‐ (9,509)
Total Comprehensive Income for the Period‐ 109 (9,633) 15 72,917 63,408
Transactions with Owners in their Capacity
as
Owners
Supplementary Dvidends‐ ‐ ‐ ‐ (1,140) (1,140)
Dividends Paid‐ ‐ ‐ ‐ (34,237) (34,237)
Foreign Investor Tax Credit‐ ‐ ‐ ‐ 1,140 1,140
Balance at 30 September 202085,821 90,713 7,034 (458) 812,400 995,510
Twelve Months to 31 March 2021 (audited)
Balance at 1 April 202085,821 90,604 16,667 (473) 773,720 966,339
Profit for the Period‐ ‐ ‐ ‐ 188,110 188,110
Other Comprehensive Income‐ 50,490 (25,327) (119) ‐ 25,044
Total Comprehensive Income for the Period‐ 50,490 (25,327) (119) 188,110 213,154
Transactions with Owners in their Capacity
as
Owners
Supplementary Dvidends‐ ‐ ‐ ‐ (2,132) (2,132)
Dividends Paid‐ ‐ ‐ ‐ (64,447) (64,447)
Foreign Investor Tax Credit‐ ‐ ‐ ‐ 2,132 2,132
Balance at 31 March 202185,821 141,094 (8,660) (592) 897,383 1,115,046
The accompanying notes form part of these interim financial statements
MAINFREIGHT LIMITED
Cash Flow Statement
For the Six Months ended 30 September 2021
Six Months Ended Six Months EndedYear ended
30 September 2021 30 September 202031 March 2021
unauditedunauditedaudited
$000$000$000
Cash Flows from Operating Activities
Receipts from Customers2,609,928 1,890,812 3,459,132
Interest Received‐ ‐ 307
Payments to Suppliers and Team Members(2,356,438) (1,648,586) (2,992,486)
Finance Charge on NZ IFRS 16 Leases(7,572) (8,394) (16,225)
Interest Paid(2,331) (2,743) (5,784)
Income Taxes Paid(65,174)
(42,580) (68,662)
Net Cash Flows from Operating Activities178,413 188,509 376,282
Cash Flows from Investing Activities
Proceeds from Sale of Property, Plant & Equipment1,411 2,386 3,529
Proceeds from Sale of Software‐ ‐ ‐
Repayments by Team Members3 2 ‐
Purchase of Property, Plant & Equipment(79,600) (49,719) (104,048)
Purchase of Software(13,798) (7,502) (18,030)
Advances
to Team Members‐ ‐ (2)
Net Cash Flows from Investing Activities(91,984) (54,833) (118,551)
Cash Flows from Financing Activities
Proceeds of Long Term Loans20,000 30,000 62,054
Dividend Paid to Shareholders(45,314) (34,237) (64,447)
Repayment of Loans(23,310) (58,462) (118,073)
Lease Payments NZ IFRS 16 (56,232) (55,978) (107,125)
Net Cash Flows from Financing Activities(104,856)
(118,677) (227,591)
Net Increase / (Decrease) in Cash and Cash Equivalents(18,427) 14,999 30,140
Net Foreign Exchange Differences(6) (2,927) (6,719)
Cash and Cash Equivalents at Beginning of Period139,555 116,134 116,134
Cash and Cash Equivalents at End of Period121,122 128,206 139,555
Comprised:
Bank and Short Term Deposits121,122 128,206 139,555
Bank Overdraft‐ ‐ ‐
121,122 128,206 139,555
The accompanying notes form part of these interim financial statements
MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Six Months ended 30 September 2021
1Corporate Information
The preliminary half year report announcement of Mainfreight Limited ("the parent") and its subsidiaries ("the Group")
for the six months ended 30 September 2021 was authorised for issue in accordance with a resolution of the Directors.
Mainfreight Limited is a company limited by shares incorporated in New Zealand whose shares
are publicly
traded on the NZX Main Board (New Zealand Stock Exchange).
2
Accounting Policies
Accounting policies remain consistent with the prior year ended 31 March 2021 financial statements.
3
Required NZX DisclosuresParent
Six Months EndedSix Months EndedYear ended
30 September 2021 30 September 202031 March 2021
unauditedunauditedaudited
SharesSharesShares
Movements in Ordinary Shares on Issue
Closing balance100,698,548 100,698,548 100,698,548
Average balance during the period100,698,548 100,698,548 100,698,548
$000$000$000
Net Tangible Assets
Net Tangible Assets907,726 707,022 832,842
Net Tangible Assets per Security (cents per share)901.43 702.12 827.06
Dividends Paid and
Proposed
Recognised Amounts
Declared and Paid during the Period to Parent Shareholders
Final Fully Imputed Dividend for 2021: 45 cents (2020: 34 cents)45,314 34,237
Unrecognised Amounts
Interim Fully Imputed Dividend for 2022: 55.0 cents (2021: 30.0 cents)55,384 30,210
After the balance date, the above unrecognised dividends were approved by Directors' resolution dated
10 November 2021
These amounts have not been recognised as a liability as at 30 September 2021 but will be brought to account in the full
year to 31 March 2022.
MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Six Months Ended 30 September 2021
4Segmental Reporting
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses whose
operating results are regularly reviewed by the entity’s chief operating decision maker and for which discrete financial information is available.
The Group operates in the domestic
supply chain (i.e. moving and storing freight within countries) and air and ocean freight industries
(i.e. moving freight between countries).
New Zealand, Australia, The Americas and Europe are each reported to management as one segment as the businesses there perform both
domestic and air and ocean services.
The segmental results from operations are
disclosed below.
Geographical Segments
The following table represents revenue, margin and certain asset information regarding geographical segments for the six months ended
30 September 2021 and 30 September 2020.
TheInter‐
New ZealandAustraliaAmericasAsiaEuropeSegmentTotal
$000$000$000$000$000$000$000
Six Months to 30 September 2021 (unaudited)
Operating Revenue
‐ Sales to Customers outside the Group498,446 557,604 623,796 155,954 438,586 ‐ 2,274,386
‐ Intersegment Sales3,819 15,684 30,350 175,574 29,632 (255,059) ‐
Total Revenue502,265 573,288 654,146 331,528 468,218 (255,059) 2,274,386
PBT & Abnormal Items48,070 47,279 49,218 16,253 21,166 ‐ 181,986
Net Interest Expense2,553 3,736 2,178 68 1,368 ‐ 9,903
Depreciation & Amortisation26,231
23,661 14,780 1,459 27,891 ‐ 94,022
Capital Expenditure43,907 19,826 11,554 764 15,936 ‐ 91,987
Trade Receivables118,497 140,979 198,856 130,973 123,728 (112,059) 600,974
Non‐current Assets710,955 474,775 236,200 18,106 383,843 ‐ 1,823,879
Total Assets807,806 635,269 473,339 199,436 589,348 (112,059) 2,593,139
Total Liabilities338,545 361,164 310,092 136,982 362,654 (112,059) 1,397,378
Six Months to 30 September
2020 (unaudited)
Operating Revenue
‐ Sales to Customers outside the Group378,895 432,211 387,041 67,013 343,701 ‐ 1,608,861
‐ Intersegment Sales750 11,677 22,964 58,821 21,421 (115,633) ‐
Total Revenue379,645 443,888 410,005 125,834 365,122 (115,633) 1,608,861
PBT & Abnormal Items37,500 32,757 13,264 6,205 12,539 ‐ 102,265
Net Interest Expense2,099 4,627 2,559 72 1,779 ‐ 11,136
Depreciation & Amortisation23,770
22,899 13,639 1,604 29,439 ‐ 91,351
Capital Expenditure29,546 13,324 4,646 911 6,408 ‐ 54,835
Trade Receivables82,757 93,778 105,216 34,629 96,226 (23,823) 388,783
Non‐current Assets578,318 467,232 213,923 18,652 395,776 ‐ 1,673,901
Total Assets661,776 603,154 364,719 78,914 570,409 (23,823) 2,255,149
Total Liabilities281,511 358,822 238,456 46,035 358,638 (23,823) 1,259,639
MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Six Months Ended 30 September 2021
4Segmental Reporting ‐ continued
Division Segments
The following table represents revenue and PBT in respect of the three main types of services for the six months ended
30 September 2021 and 30 September 2020.
Domestic
Transport Warehousing Air & OceanTotal
$000$000$000$000
Six Months to 30 September 2021 (unaudited)
Revenue 894,315 264,615 1,115,456 2,274,386
PBT & Abnormal Items72,913 22,188 86,885 181,986
Six Months to 30 September 2020 (unaudited)
Revenue 746,578 214,503 647,780 1,608,861
PBT & Abnormal Items57,446 16,124 28,695 102,265
30 Sep 2021 30 Sep 2020
unauditedunaudited
$000$000
Reconciliation between non‐GAAP and the Income Statement
Profit before Taxation for the Period181,986 102,265
Abnormal Items‐ ‐
Profit before Abnormal Items and Taxation for the Period181,986 102,265
Interest Income‐ ‐
Finance Costs Relating to Lease Liabilities7,572 8,394
Other Finance Costs2,331 2,742
EBITA191,889 113,401
Depreciation of Right of Use
Assets59,160 60,749
Other Depreciation and Amortisation Expenses34,862 30,602
EBITDA (Adjusted)285,911 204,752
EBITDA (Adjusted) is defined as earnings before net interest expense, tax, depreciation, amortisation, abnormal items and
royalties (segment only; not Group).
There are no customers in any segment that comprise more than 10% of that segment's revenue.
Bank term
loan is allocated based on segment net assets excluding bank term loan.
The geographical segments are determined based on the location of the Group's assets.
---
MAINFREIGHT LIMITED
Mainfreight Lane | off Saleyards Road | Otahuhu 1062 | New Zealand
Tel +64 9 259 5500 | Fax +64 9 270 7400
PO Box 14-038 | Panmure | Auckland 1741 | New Zealand
Supporters of
MAINFREIGHT – GLOBAL LOGISTICS
MAINFREIGHT LIMITED
11 November 2021
Financial result for the six months ended 30 September 2021 (Unaudited)
Commentary
Mainfreight is pleased to announce our half-year financial results to 30 September
2021. These are in line with our expectations and reflect the ongoing development of
our global network, with all five regions contributing strongly to the improved financial
performance.
Revenue $2.274 billion Up $665.52 million or 41.4%
Profit before tax $181.99 million Up $79.72 million or 78.0%
Net profit $130.81 million Up $57.89 million or 79.4%
The impact of foreign exchange is considerable. Excluding FX, Revenue is
increased 48.2%, Profit before tax by 86.2%, and Net profit by 87.9%.
There are no abnormal items in the current year, nor the year prior.
An interim dividend of 55 cents per share has been set by the Board of Directors,
payable on 17 December 2021; an increase of 83.3%.
We are pleased with this result, particularly in light of supply chain congestion and
ongoing lockdown disruptions across most markets.
- 2 -
Air & Ocean revenue performance in all regions has increased because of higher air
and sea freight rates and an increase in freight tonnage as a result of market share
gains and consumer demand. We remain focused on solutions for our customers as we
navigate congested supply chains across a wide range of trade lanes, both domestically
and internationally.
Divisional Performance (figures in local currencies)
New Zealand (NZ$)
Revenue $498.45 million Up $119.55 million or 31.6%
Profit before tax $48.07 million Up $10.57 million or 28.2%
A disrupted first half performance for our New Zealand operations with our Transport
network affected with the August Level 4 lockdown enforcement, albeit volumes are
recovering well as restrictions have eased. There has been a significant increase in
home deliveries.
Warehousing activity continues to be strong as customers hold more inventory to
better withstand supply chain disruptions.
Air & Ocean volumes continue to grow as we find solutions for our customers in the
congested shipping and airfreight environment.
Trading across all three divisions has continued to strengthen post-September with
expectations of this continuing well after December. Unfortunately, a lack of rail and
ferry capacity is slowing inter-island deliveries.
Australia (AU$)
Revenue AU$525.04 million Up AU$121.83 million or 30.2%
Profit before tax AU$44.52 million Up AU$13.96 million or 45.7%
Our Australian business continues to find increasing growth and profitability,
predominantly from increased market share.
- 3 -
The ongoing intensification of our domestic Transport network is benefiting our
customers. Three additional regional branches are expected to open over the next 12
months increasing our reach across Australia. Service levels, while improving regional
coverage, are under pressure as volumes begin to stretch our capacity in main centres.
Warehousing volumes have continued to grow, as new customers are attracted to our
offering. New Warehousing facilities for Sydney, Melbourne and Adelaide are
confirmed and under construction to cater for this growth. Additional capacity is being
negotiated for Brisbane.
Air & Ocean volumes and revenue also remain elevated as demand exceeds supply
across our international network.
Europe (Euro €)
Revenue €260.43 million Up €66.65 million or 34.4%
Profit before tax €12.57 million Up €5.50 million or 77.8%
Improved trading across all three divisions has assisted this result.
Better Warehousing utilisation with improved stock levels is helping. A number of new
Warehousing customer gains are expected with the need to increase our footprint in the
medium term. However, return-per-square-metre still lags our Warehousing businesses
in other regions.
Transport margins are not as healthy as we would like with lower than expected
utilisation across a number of new line-haul routes, particularly into and from Germany.
Brexit delays add to the already-stressed supply chain, albeit volumes have reduced
from their peak earlier in the year.
Air & Ocean revenue and volumes, like elsewhere in our global network, have
benefited from consumer demand and market share gains.
- 4 -
Whilst trading post the August European summer period has not been as strong as we
would have expected, volumes pre-Christmas are increasing and Transport utilisation
levels are improving.
The Americas (US$)
Revenue US$441.40 million Up US$193.38 million or 78.0%
Profit before tax US$34.83 million Up US$26.33 million or 309.7%
By far, this result is dominated by the performance across our Air & Ocean business,
where demand has been exceptional. Whilst volumes have increased and new
customer gains are assisting, the ability to secure additional capacity is restricting our
growth.
Domestic Transport volumes have continued to increase with improved road line-haul
utilisation throughout our network. Increasing market share is assisting, as is a greater
focus on our LCL customer profile.
Warehousing utilisation and activity continues to increase. Our three new warehouses
across Texas, Pennsylvania and Toronto, Canada, are now occupied; however
efficiency in our new and largest site in Texas (50,000m
2
) has been hampered by a
shortage of warehouse racking supplies. This is expected to take a further three
months to rectify.
Our CaroTrans NVOCC wholesale business has also benefited from strong
international shipping demand, particularly in the volumes of LCL freight movement
driven by high FCL container pricing and the shortage of capacity.
Trading post-September across our USA businesses has continued to be strong and is
expected to remain this way post-December.
- 5 -
Asia (US$)
Revenue US$110.35 million Up US$67.41 million or 157.0%
Profit before tax US$11.50 million Up US$7.52 million or 189.2%
Our Asian operations are primarily focused on our Air & Ocean products and are an
important link in our global trade development. Accordingly, we have benefited in
increased demand for shipping and airfreight capacity. Pleasingly, this continues to
extend across all nine countries we are located in across Asia, with improving
contributions from our Southeast Asia branch network.
In line with the balance of our international network, airfreight volume and capability
continues to be a significant contributor. Similarly, sea freight capacity constraints are
limiting growth.
Trading remains strong post-September and is expected to continue, subject to space
availability, well into the New Year and leading up to Chinese New Year.
Product and Service Updates
Air & Ocean (NZ$)
Revenue $1,115 million Up $467.68 million or 72.2%
Profit before tax $86.89 million Up $58.19 million or 202.8%
Capacity shortages and customer demand remain at elevated levels, particularly across
ocean freight requirements for most global trade lanes that we are involved in servicing.
In turn, this is increasing demand for airfreight services across a depleted air network
due to a lack of passenger flights, and the resulting shortage of belly space for airfreight
tonnage.
Port congestion is exacerbating the ocean freight supply issues with in excess of 600
vessels on average waiting outside the world’s ports, pending discharge. Container
equipment shortages add to the situation.
- 6 -
It is our expectation that the imbalance of supply and demand will see supply chain
congestion remain into the near future, with freight rates similarly remaining elevated.
The Mainfreight Air & Ocean network continues to focus on finding space availability
solutions wherever possible for our customers. This includes bulk-shipping and
alternative services to address container shortages, and the chartering of aircraft where
volumes dictate.
The benefits of our own network are allowing our people to maintain reasonable service
levels for our customers in light of the congestion.
Sales revenues across our Air & Ocean network have increased 72%, largely as a
result of air and sea freight rates, but also reflecting a 30% increase in our volumes.
Transport (NZ$)
Revenue $894.32 million Up $147.74 million or 19.8%
Profit before tax $72.91 million Up $15.47 million or 26.9%
Our domestic Transport businesses in all countries are coping with the increased
volumes and transit times have been relatively unaffected. However, in New Zealand,
where there is a shortage of rail and ferry capacity between the two islands, we are
advising customers to ship earlier rather than relying on overnight and two-day service
levels. Maintaining “Just In Time” inventory levels is becoming more difficult as supply
chain congestion continues.
Volumes have increased in line with revenue growth – a combination of market share
increases and consumer demand across all of our key domestic transport markets.
Warehousing (NZ$)
Revenue $264.62 million Up $50.11 million or 23.4%
Profit before tax $22.19 million Up $6.06 million or 37.6%
Our Warehousing footprint across all regions has increased 16% in the past six months;
notably, our USA footprint is up 50%.
- 7 -
This brings our total square metres of warehousing to 936,153m
2
. New customer gains
and larger inventory holdings from established customers have contributed to these
increases. Additional warehousing capacity is planned across all five regions as new
customer gains are confirmed; likely exceeding 250,000 m
2
over the next 24 months.
Warehouse automation trials in Australia and the USA have been successful,
encouraging us to plan and implement further automation as new sites are developed.
Slower ocean freight services are seeing congested container arrivals into warehouses,
and at times delaying the despatching of back orders.
Group Operating Cash Flows
Operating cash flows were $178.4 million, down from $188.5 million in the prior year,
reflecting supply chain congestion and freight rate increases in our Air & Ocean division.
This has increased our working capital requirements.
Net debt is $115.7 million, up from $102.2 million at 31 March 2021, an increase of
$13.5 million.
Gearing ratios are consistent with 31 March 2021 at 8.8%.
During the half-year, net capital expenditure totalled $92.0 million, with expenditure for
land and buildings, including fit out, accounting for $65.8 million, plant and equipment of
$12.4 million, and information technology of $13.8 million.
Our expectations are for capital expenditure for the full financial year ending 31 March
2022 to be in the range of $208 million. A further $290 million is estimated for capital
expenditure in the 2023 financial year.
Network development remains a key strategy; with 57 leased and owned facilities under
development across all five regions.
- 8 -
Dividend
The Board of Directors has approved an interim dividend of 55 cents per share fully
imputed at the 28% company tax rate, with the books closing on 10 December 2021;
and payment made on 17 December 2021. This is an 83.3% increase on the prior
year’s interim dividend.
Senior Executive Appointment for New Zealand
We are pleased to announce the appointment of Carl George to the role of
New Zealand Country Manager, replacing Craig Evans who has resigned and will leave
the business at the end of January 2022.
Carl’s career with Mainfreight spans almost 27 years, during which he has held various
sales, branch management and leadership roles, both here and overseas. For the last
ten years, he has successfully led our Transport division in New Zealand. Carl will
transition into the role of leading the full New Zealand business over the ensuing weeks.
We appreciate all that Craig has achieved for Mainfreight in his 34-year tenure. He
leaves the business in a strong position, performing well across all three divisions. Carl
will continue to build on this platform, bringing his passion for efficiency and quality, and
with solid support from our team.
Outlook
We remain satisfied with this financial result for the half-year.
Increased consumer demand, ongoing market share activity, and elevated international
shipping and airfreight rates contribute to the result.
Our exposure to 26 different countries across five regions is providing a significant
competitive advantage. Our network intensification continues to increase our regional
coverage in most countries. However, the unprecedented supply chain congestion and
demand has required delivery expectations be extended.
Trading post the half-year has seen a continuation of current financial and volume
trends; at times significantly ahead of the prior year. We remain optimistic these levels
- 9 -
of activity and growth will continue across our global network for the remainder of this
financial year and into the next. Service levels for our customers is our key
consideration in light of the significant freight volumes being handled by our people
across our networks.
Mainfreight will release its financial results for the full 2022 financial year on 26 May
2022. In light of current trends, we will provide a nine-month trading update mid-
February 2022.
For further information, please contact Don Braid, Group Managing Director,
telephone +64 9 259 5503, +64 274 961 637 or email don@mainfreight.com.
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DRP Applies
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Ex-Date (one business day before the Record
Date)
Payment date (and allotment date for DRP)
Total monies associated with the distribution
Source of distribution (for example, retained
earnings)
Currency
Section 2: Distribution Amounts per Financial Product
Gross Distribution
Gross Taxable Amount
Total Cash Distribution
Excluded Amount (applicable to listed PIEs)
Supplementary Distribution Amount
If fully or partially imputed, please state
imputation rate as % applied
Imputation tax credits per financial product
Resident Withholding Tax per financial
product
N/A
Authority for this Announcement
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
tim@mainfreight.com
11/11/2021
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
$0.21388889
$0.03819444
Section 4: Distribution Re-investment Plan (not applicable)
28.0%
$0.76388889
$0.76388889
$0.55000000
$0.09705882
Section 3: Imputation Credits and Resident Withholding Tax
Is the Distribution imputed?
Fully imputed
Partial imputation
No imputation
Type of distribution
(Please mark with an X in the
relevant box/es)
NZD
Mainfreight Limited
Ordinary Shares
MFT
NZMFTE0001S9
10/12/2021
9/12/2021
17/12/2021
$55,384,201
Retained Earnings
---
MAINFREIGHT
LIMITED
FY22
HALF
YEAR
RESULT
TO
30
SEPTEMBER
2021
Page
2
Result
Summary
Revenue
up
41.4%
to
$2.27
billion
REVENUE
PBT
NET
PROFIT
Profit
before
tax
up
78%
at
$181.99
million
Offshore
Profit
before
tax
now
$133.92
million
– 74%
(last
year
was
66%)
Up
79%
to
$130.81
million
Page
3
Overview
of
Half
Year
All
five
regions
contributing
to
Revenue
and
Profit
increases
Air
&
Ocean
revenues
continue
to
be
inflated
by
increasing
air
and
sea
freight
rates.
This
is
expected
to
continue
for
some
time
Service
levels
and
space
availability
a
core
focus
on
behalf
of
our
customers
Page
4
Dividend
Directors
have
approved
an
interim
dividend
of
55
cents
per
share
Increase
of
83.3%
over
the
prior
year’s
interim
dividend
Books
close
10
December
2021;
payment
on
17
December
2021
DIVIDEND
Page
5
Capital
Management
/
Net
Debt
NZ$
MILLION
THIS
YEAR
LAST
YEAR
Operating
cash
flow
$178.4
$188.5
Increased
shipping
delays
are
requiring
more
working
capital
Gearing
ratio
8.8%
compared
to
8.4%
at
31
March
2021
Net
debt
at
$115.7
million,
up
from
$102.2
million
at
31
March
2021
NET DEBT
Page
6
Capital
Expenditure
$92
million
F22
F23
HY22
SEPT
2021
$208
million
including
$162
million
land
&
buildings
(including
racking
&
fit
out)
primarily
across
New
Zealand
and
Australia
$290
million
including
$246
million
for
expected
property
capital
investment
Page
7
Property
Initiatives:
Land
/
Building
/
Leases
NZ$
Million
F22
Planned
Capital
Expenditure
$207.8
NZ$
Million
F23
Planned
Capital
Expenditure
$290.3
Property
Projects for
2022
and
2023
New
Zealand
LandBuildingsLeases
4
1411
Australia
LandBuildingsLeases
245
Americas
Leases
8
Europe
BuildingsLeases
16
Asia
Leases
2
57
Strong
focus
ensuring
effective
capital
expenditure
Transport
facilities
vs
leased
warehouses
Page
8
Half
Year
Analysis:
Revenue
$000
THIS
YEAR
LAST
YEAR
VARIANCE
New Zealand
NZ$
498,447
378,895
31.6%
Australia
AU$
525,040
403,210
30.2%
Americas
US$
441,398
248,016
78.0%
Asia
US$
110,353
42,942
157.0%
Europe
EU€
260,432
193,779
34.4%
Total
Group
NZ$
$2,274,386
$1,608,861
41.4%
(excl
FX)
48.2%
Page
9
Half
Year
Analysis:
Profit
Before
Tax
$000
THIS
YEAR
LAST
YEAR
VARIANCE
New Zealand
NZ$
48,071
37,500
28.2%
Australia
AU$
44,518
30,559
45.7%
Americas
US$
34,827
8,500
309.7%
Asia
US$
11,500
3,976
189.2%
Europe
EU€
12,568
7,069
77.8%
Total
Group
NZ$
$181,986
$102,265
78.0%
(excl
FX)
86.2%
Page
10
Product
Performance
NZ$000
THIS
YEAR
LAST
YEAR VARIANCE VAR
ex
FX
Group
Revenue
2,274,386
1,608,861
41.4%
48.2%
PBT
181,986
102,265
78.0%
86.2%
Transport
Revenue
894,315
746,578
19.8%
23.6%
PBT
72,913
57,446
26.9%
29.3%
Warehousing Revenue
264,615
214,503
23.4%
28.7%
PBT
22,188
16,124
37.6%
42.6%
Air
&
Ocean
Revenue
1,115,456
647,780
72.2%
83.0%
PBT
86,885
28,695
202.8%
224.5%
Page
11
Region
Performance:
New
Zealand
Transport
volumes
impacted
during
Alert
Level
4.
Alert
level
reductions
saw
volumes
increase
dramatically
Warehousing
space
at
a
premium,
higher
inventory
levels
amid
new
customer
gains
Air
&
Ocean
continues
to
win
market
share
with
innovative
solutions
to
capture
air
and
sea
capacity
Rail
and
ferry
issues
slowing
inter
‐
island
freight
movements
Post
‐
September
trading
remains
strong
and
consistent
and
is
expected
to
continue
after
Christmas
in
line
with
consumer
demand
Revenue:
NZ$498.45m
Up
32%
PBT:
NZ$48.07m
Up
28%
Page
12
Australia
Trading
remains
strong
irrespective
of
lockdown
levels
in
the
various
States
Transport
volumes
and
growth
continue
as
market
share
gains
accumulate
and
network
growth
provides
more
regional
opportunities.
Service
levels
under
pressure
Warehousing
results
are
satisfactory,
slowed
a
little
by
the
need
for
temporary
sites
as
new
facilities
across
Victoria,
NSW
and
Queensland
are
constructed
Air
&
Ocean
development
continues
with
a
number
of
large
projects
adding
to
our
growth
profile.
New
perishable/airfreight
facilities
in
Brisbane
under
construction
Post
‐
September
trading
continues
to
exceed
our
expectations,
with
pre
‐
Christmas
volumes
likely
to
be
at
record
levels
Revenue:
AU$525.04m
Up
30%
PBT:
AU$44.52m
Up
46%
Page
13
Europe
Slower
holiday
and
post
‐
holiday
freight
volumes
(particularly
in
Transport
)
combined
with
higher
overhead
costs,
dampened
first
‐
half
results.
Brexit
delays
remain
an
issue
Additional
road
line
‐
haul
development
into
and
from
Germany
impacted
Transport
margins,
with
improvements
progressing
post
‐
September
Increased
utilisation
has
seen
improvement
in
Warehousing
profitability
albeit
not
yet
meeting
our
expectations.
Inventory
levels
are
increased
Air
&
Ocean
growth
continues,
with
expectations
of
further
network
development
Trading
post
‐
September
is
improving
Revenue:
EU€260.43m
Up
34%
PBT:
EU€12.57m
Up
78%
Page
14
The
Americas
Strong
Air
&
Ocean
performance
with
air
and
seafreight
growth
via
demand
and
market
share
gains,
and
strong
LCL
volumes.
Space
availability
is
limiting
further
opportunities
Warehousing
activities
increasing.
Three
new
warehouses
in
Texas,
Pennsylvania
and
Toronto.
Slow
fit
out
(racking)
creating
inefficiencies
Transport
LTL
volumes
improving,
providing
better
utilisation
on
set
line
‐
haul
network
Trading
continues
post
‐
September
at
current
levels
across
our
three
divisions
Revenue:
US$441.40m
Up
78%
PBT:
US$34.83m
Up
310%
Page
15
The
Americas
CaroTrans
Strong
volumes
across
all
trade
lanes
and
consistent
with
international
shipping
demands
LCL
volumes
high
as
a
consequence
of
high
FCL
rate
levels
and
capacity
shortages – customers
revert
to
smaller
consignments
more
often
As
with
our
retail
sea
freight
business,
CaroTrans
is
expected
to
continue
at
these
trading
levels
well
into
2022
Page
16
Asia
Strong
Trans
‐
Pacific
Eastbound
volume
demand
has
assisted
this
result.
Air
freight
volumes
continue
to
develop
Southeast
Asia
growth
and
profitability
is
pleasing,
particularly
from
Thailand
Forward
bookings
remain
strong
through
to
Chinese
New
Year
albeit
space
availability
is
restricting
some
opportunities
Revenue:
US$110.35m
Up
157%
PBT:
US$11.50m
Up
189%
Page
17
Product
Performance:
Air
&
Ocean
Demand
continues
at
unprecedented
levels
Space
unavailability
inhibiting
opportunities
for
further
growth
Port
congestion
and
equipment
shortages
remain
Rates
for
sea
and
air
elevated
–contract
rates
being
re
‐
negotiated,
at
times
close
to
spot
rate
levels
Expect
rate
levels
and
space
issues
to
continue
well
into
2022,
if
not
beyond
Finding
“solutions”
for
our
customers
a
key
priority
with
some
success
already
Volumes
have
increased
by
30%.
Some
opportunities
have
been
lost
due
to
shortage
of
capacity
Revenue:
NZ$1,115m
Up
72%
(ex
FX
83%)
PBT:
NZ$86.89m
Up
203%
(ex
FX
225%)
Page
18
Warehousing
Customers
are
holding
more
inventory
in
more
locations
Just
In
Case
vs
Just
In
Time
Demand
increasing
with
new
customer
gains
assisting
Increased
capacity
of
250,000m
2
over
the
next
two
years,
taking
total
capacity
to
1,186,153m
2
Automation
in
Melbourne
and
Dallas
is
reasonably
successful
and
will
be
implemented
across
additional
sites
Revenue:
NZ$264.62m
Up
23%
(ex
FX
29%)
PBT:
NZ$22.19m
Up
38%
(ex
FX
43%)
Page
19
Transport
New
Zealand
and
Australia
Transport
volumes
increased
significantly,
particularly
post
‐
September
Domestic
volume
across
all
regions
up
15%
to
the
half
year
Shortage
of
rail
and
ferry
capacity
hampering
distribution
and
meeting
customers’
transit
expectations
in
New
Zealand
Owner
‐
Driver
and
Driver
shortages
are
becoming
an
issue,
supplemented
with
leased/owned
equipment
–particularly
in
USA
and
Europe
Fuel
costs
are
increasing
and
being
passed
through
to
customers
across
all
regions
Rate
reviews
expected
to
occur
across
all
regions
during
Q1
of
the
2022
calendar
year
Revenue:
NZ$894.32m
Up
20%
(ex
FX
24%)
PBT:
NZ$72.91m
Up
27%
(ex
FX
29%)
Page
20
Group
Outlook
Strong
half
year
position,
followed
by
further
improving
results
post
‐
September
Expectation
of
increased
volumes
and
growth
through
to
year
‐
end
and
beyond
Consumer
demand
Market
share
opportunities
Product
mix
– food,
beverages,
DIY,
etc
Continued
network
intensification
and
investment
in
facilities
Expectation
of
increased
team
bonuses
with
accrual
made
to
half
year
of
NZ$30m,
compared
to
NZ$15m
for
the
prior
period
Page
21
Financial
Calendar
F22/23
DATE
Trading Update
(timing
tbc)
February
2022
F22 – 12
months
ended
31
March
2022
26
May
2022
Annual
Meeting
of
Shareholders
28
July
2022
F23
–6
months
ended
30
September
2022
10 November
2022
We’re
ready
to
face
whatever
comes
over
the
horizon!
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of IssuerMainfreight Limited
Reporting Period6 months to 30 September 2021
Previous Reporting Period6 months to 30 September 2020
CurrencyNZD
Amount (000s)Percentage Change
Revenue from Continuing Operations$2,274,38641.4%
Total Revenue$2,274,38641.4%
Net Profit/(Loss) from Continuing Operations$130,81079.4%
Total Net Profit/(Loss)$130,81079.4%
Interim/Final Dividend
Amount per Quoted Equity Security$0.55000000
Imputed Amount per Quoted Equity Security$0.09705882
Record Date10/12/2021
Dividend Payment Date17/12/2021
Current PeriodPrior Comparable Period
Net tangible assets per Quoted Equity Security
$9.0143$7.0212
A brief explanation of any of the figures above
necessary to enable the figures to be
understood
Name of person authorised to make this
announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
11/11/2021
Unaudited financial statements accompany this announcement.
Authority for this Announcement
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
tim@mainfreight.com
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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