Mainfreight Full Year Results to 31 March 2022
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Results for announcement to the market
Name of IssuerMainfreight Limited
Reporting Period12 months to 31 March 2022
Previous Reporting Period12 months to 31 March 2021
CurrencyNZD
Amount (000s)Percentage Change
Revenue from Continuing Operations$5,218,25947.2%
Total Revenue$5,218,25947.2%
Net Profit/(Loss) from Continuing Operations$355,39788.9%
Total Net Profit/(Loss)$355,39788.9%
Interim/Final Dividend
Amount per Quoted Equity Security$0.87000000
Imputed Amount per Quoted Equity Security$0.15352941
Record Date15/07/2022
Dividend Payment Date22/07/2022
Current PeriodPrior Comparable Period
Net tangible assets per Quoted Equity Securit
y
$11.4616$8.2706
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
26/05/2022
Unaudited financial statements accompany this announcement.
Authority for this Announcement
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
tim@mainfreight.com
MAINFREIGHT LIMITED
Preliminary Full Year Announcement
For the Full Year ended 31 March 2022
Income Statement
For the Full Year ended 31 March 2022
Year endedYear ended
31 March 202231 March 2021
Notesunauditedaudited
$000$000
Total Revenue5,218,259 3,543,838
Transport Costs(3,356,790) (2,141,744)
Labour Expenses(886,614) (723,444)
Other Expenses(263,818) (211,836)
Earnings before Finance Costs, Tax, Depreciation and Amortisation
711,037 466,814
Depreciation of Right to Use Assets(127,289) (113,938)
Finance Costs Relating to Lease Liabilities(15,731) (16,225)
Other Depreciation & Amortisation Expenses(73,324) (68,460)
Other Finance Costs(5,312) (5,784)
Profit before Taxation for the Year489,381 262,407
Income Tax Expense(133,984) (74,297)
Net Profit for the Year355,397 188,110
Earnings per share
Basic and diluted earnings (cents per share)352.93186.81
Net Profit for the Period355,397188,110
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(7,412) (22,545)
Income Tax Effect(1,047) (2,782)
Net Other Comprehensive income to be reclassified to profit/(loss)
in subsequent periods
(8,459) (25,327)
Other comprehensive income not to be reclassified to profit/(loss) in
subsequent periods
Revaluation of Land including Foreign Exchange Movements82,659 55,814
Income
Tax effect(15,016) (5,324)
Defined Benefit Pension Provision455 (159)
Income Tax effect(114) 40
Net Other Comprehensive income not to be reclassified to
profit/(loss) in subsequent periods
67,984 50,371
Other Comprehensive Income for the Period, Net of Tax59,525 25,044
Total Comprehensive Income for the Period, Net of Tax414,922 213,154
The accompanying notes form part of these financial statements
Preliminary full year report on consolidated results (including the results for the previous corresponding full 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 Full Year ended 31 March 2022
Statement of Comprehensive Income
MAINFREIGHT LIMITED
Balance Sheet
As at 31 March 2022
31 March 2022 31 March 202131 March 2022 31 March 2021
unauditedauditedunauditedaudited
$000$000$000$000
Current AssetsCurrent Liabilities
Bank202,258 139,555 Bank‐ ‐
Trade Debtors805,568 489,246 Trade Creditors & Accruals562,004 412,826
Income Tax Receivable275 251 Employee Entitlements152,305 91,997
Other Debtors48,563 89,531 Provision for Taxation56,609 30,344
Lease Liability for Right of Use Assets121,136 118,158
Asset Finance Loans8,841 9,198
1,056,664
718,583 900,895 662,523
Non‐current Tangible AssetsNon‐current Liabilities
Property925,190 755,566 Bank Term Loan176,005 210,000
Plant & Equipment185,020 162,597 Employee Entitlements2,519 2,922
Right of Use Assets585,970 567,956 Deferred Tax Liability10,684 6,571
Lease Liability for Right of Use Assets490,099 467,276
Asset Finance Loans18,480 22,568
1,696,180 1,486,119 697,787 709,337
Total Liabilities1,598,682 1,371,860
Non‐current Intangible AssetsShareholders' Equity
Software52,081 53,510 Share Capital85,821 85,821
Goodwill204,498 208,626 Retained Earnings1,152,081 897,383
Other Intangible Assets1,288 1,607 Revaluation Reserve208,737 141,094
Deferred Tax Asset17,240 18,461 Foreign Currency Translation Reserve(17,119) (8,660)
Defined Benefit Pension Reserve(251) (592)
275,107 282,204 Total Equity1,429,269 1,115,046
Total Assets3,027,951 2,486,906 Total Liabilities & Equity3,027,951 2,486,906
The accompanying notes form part of these financial statements
MAINFREIGHT LIMITED
Statement of Changes in Equity
For the Full Year ended 31 March 2022
ForeignDefined
Asset CurrencyBenefit
Ordinary Revaluation TranslationPension RetainedTotal
SharesReserveReserveReserveEarningsEquity
$000$000$000$000$000$000
Twelve Months to 31 March 2022 (unaudited)
Balance at 1 April 202185,821 141,094 (8,660) (592) 897,383 1,115,046
Profit for the Period‐ ‐ ‐ ‐ 355,397 355,397
Other Comprehensive Income‐ 67,643 (8,459) 341 ‐ 59,525
Total Comprehensive Income for the Period‐ 67,643 (8,459) 341 355,397 414,922
Transactions with Owners in their Capacity
as
Owners
Supplementary Dvidends‐ ‐ ‐ ‐ (3,674) (3,674)
Dividends Paid‐ ‐ ‐ ‐ (100,699) (100,699)
Foreign Investor Tax Credit‐ ‐ ‐ ‐ 3,674 3,674
Balance at 31 March 202285,821 208,737 (17,119) (251) 1,152,081 1,429,269
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 financial statements
MAINFREIGHT LIMITED
Cash Flow Statement
For the Full Year ended 31 March 2022
Year endedYear ended
31 March 202231 March 2021
unauditedaudited
$000$000
Cash Flows from Operating Activities
Receipts from Customers4,930,932 3,459,132
Interest Received341 307
Payments to Suppliers and Team Members(4,289,186) (2,992,486)
Finance Charge on NZ IFRS 16 Leases(15,731) (16,225)
Interest Paid(5,312) (5,784)
Income Taxes Paid(117,247) (68,662)
Net Cash Flows from Operating Activities503,797 376,282
Cash Flows
from Investing Activities
Proceeds from Sale of Property, Plant & Equipment3,724 3,529
Proceeds from Sale of Software66 ‐
Purchase of Property, Plant & Equipment(175,908) (104,048)
Purchase of Software(16,962) (18,030)
Advances to Team Members‐ (2)
Net Cash Flows from Investing Activities(189,080) (118,551)
Cash Flows from Financing Activities
Proceeds of Long Term Loans74,792
62,054
Dividend Paid to Shareholders(100,699) (64,447)
Repayment of Loans(104,724) (118,073)
Lease Payments NZ IFRS 16 (119,336) (107,125)
Net Cash Flows from Financing Activities(249,967) (227,591)
Net Increase / (Decrease) in Cash and Cash Equivalents64,750 30,140
Net Foreign Exchange Differences(2,047) (6,719)
Cash and Cash Equivalents at Beginning of Period139,555 116,134
Cash
and Cash Equivalents at End of Period202,258 139,555
Comprised:
Bank and Short Term Deposits202,258 139,555
Bank Overdraft‐ ‐
202,258 139,555
The accompanying notes form part of these financial statements
MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Full Year ended 31 March 2022
1Corporate Information
The preliminary full year report announcement of Mainfreight Limited ("the parent") and its
subsidiaries ("the Group") for the full year ended 31 March 2022 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
Year endedYear ended
31 March 202231 March 2021
unauditedaudited
SharesShares
Movements in Ordinary Shares on Issue
Closing balance100,698,548 100,698,548
Average balance during the period100,698,548 100,698,548
$000$000
Net Tangible Assets
Net Tangible Assets1,154,162 832,842
Net Tangible Assets per Security (cents per share)1,146.16 827.06
Dividends Paid and Proposed
Recognised Amounts
Declared and Paid during the Period to
Parent Shareholders
Final Fully Imputed Dividend for 2021: 45.0 cents (2020: 34.0 cents)45,314 34,237
Interim Fully Imputed Dividend for 2022: 55.0 cents (2021: 30.0 cents)55,385 30,210
100,699 64,447
Unrecognised Amounts
Final Fully Imputed Dividend for 2022: 87.0 cents (2021: 45.0 cents)87,608 45,314
After the balance date, the above unrecognised dividends were approved by Directors' resolution dated 25 May 2022
4Annual Report and Annual Meeting
The annual report is expected to be available on 28 June 2022.
The Annual Meeting is to be held at 4.00pm on Thursday 28 July 2022; venue to be advised.
MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Full Year ended 31 March 2022
5Segmental 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 years ended
31 March 2022 and 31 March 2021.
TheInter‐
New ZealandAustraliaAmericasAsiaEuropeSegmentTotal
$000$000$000$000$000$000$000
Year to 31 March 2022 (unaudited)
Operating Revenue
‐ Sales to Customers outside the Group1,130,199 1,246,199 1,563,240 331,480 947,141 ‐ 5,218,259
‐ Intersegment Sales14,455 43,509 78,267 398,875 66,062 (601,168) ‐
Total Revenue1,144,654 1,289,708 1,641,507 730,355 1,013,203 (601,168) 5,218,259
PBT136,479 114,007 144,685 41,401 52,809 ‐ 489,381
Net Interest Expense6,578 6,273 4,999 132 2,720 ‐ 20,702
Depreciation & Amortisation55,083 50,462 34,334 3,346
57,388 ‐ 200,613
Capital Expenditure80,445 64,071 19,042 1,737 27,574 ‐ 192,869
Trade Receivables141,749 197,252 286,019 68,461 178,275 (66,188) 805,568
Non‐current Assets752,569 543,880 297,705 18,649 358,484 ‐ 1,971,287
Total Assets920,087 777,168 650,161 160,758 585,965 (66,188) 3,027,951
Total Liabilities369,475 430,063 429,288 93,623 342,421 (66,188) 1,598,682
Year to 31 March 2021 (audited)
Operating Revenue
‐ Sales to Customers outside the Group845,554 939,340 859,647 155,392 743,905 ‐ 3,543,838
‐ Intersegment Sales2,199 25,773 50,574 160,354 44,708 (283,608) ‐
Total Revenue847,753 965,113 910,221 315,746 788,613 (283,608) 3,543,838
PBT97,814 76,573 38,627 10,501 38,892 ‐ 262,407
Net Interest Expense6,289 7,267 4,948 143 3,055 ‐ 21,702
Depreciation & Amortisation48,411 46,910 27,779 3,086
56,212 ‐ 182,398
Capital Expenditure73,612 18,503 9,859 1,418 18,686 ‐ 122,078
Trade Receivables107,640 129,358 140,222 52,032 105,504 (45,510) 489,246
Non‐current Assets672,691 473,197 229,823 17,862 374,750 ‐ 1,768,323
Total Assets805,375 640,163 410,136 92,505 584,237 (45,510) 2,486,906
Total Liabilities348,340 379,753 272,829 52,965 363,483 (45,510) 1,371,860
MAINFREIGHT LIMITED
Notes to the Financial Statements
For the Full Year ended 31 March 2022
5Segmental Reporting ‐ continued
Division Segments
The following table represents revenue and PBT in respect of the three main types of services for the years ended
31 March 2021 and 31 March 2022.
Domestic
Transport Warehousing Air & OceanTotal
$000$000$000$000
Year Ended 31 March 2022
Revenue 1,914,903 583,821 2,719,535 5,218,259
PBT183,861 55,262 250,258 489,381
Year Ended 31 March 2021
Revenue 1,610,741 452,116 1,480,981 3,543,838
PBT140,527 42,207 79,673 262,407
31 March 2022 31 March 2021
unauditedaudited
$000$000
Reconciliation between non‐GAAP and the Income Statement
Profit before Taxation for the Year489,381 262,407
Interest Income(341) (307)
Finance Costs Relating to Lease Liabilities15,731 16,225
Other Finance Costs5,312 5,784
EBITA510,083 284,109
Depreciation of Right of Use Assets127,289 113,938
Other Depreciation and Amortisation Expenses73,324 68,460
EBITDA (Adjusted)710,696 466,507
EBITDA (adjusted) is defined as earnings before net interest expense, tax, depreciation, amortisation, 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
Financial result for the twelve months ended 31 March 2022 (Unaudited)
Commentary
Mainfreight is pleased to confirm our full-year financial results to 31 March 2022; another
record result and a more than satisfactory improvement on the prior year. These results
should not come as a surprise to our shareholders and the market following our regular
updates as a consequence of a highly disrupted year in the world of logistics.
Revenue $5.22 billion Up $1.67 billion or 47.2%
Profit before tax $489.4 million Up $227.0 million or 86.5%
Net profit $355.4 million Up $167.3 million or 88.9%
• Adjusted for foreign exchange impact, Group revenue is up 50.8%, and profit before
tax is up 90.5%.
• There are no abnormal items in the current year. Costs associated with the closure of
our Russian business have been included in the result.
• A final dividend of 87.0 cents per share has been authorised by the Board of Directors,
payable on 22 July 2022.
We are pleased with this result, particularly in light of ongoing supply chain disruptions
and pandemic-enforced lockdowns.
While the result includes a significant increase in contribution from our Air & Ocean
division across the world, we have also seen increased contributions to profitability and
growth in domestic Warehousing and Transport across our global network.
- 2 -
All five regions saw increased sales growth and profitability. Net profit after tax from our
businesses outside of New Zealand now exceeds 72% of the Group total.
This financial performance reflects:
• the extraordinary economic conditions in all five regions where we are located, with
consumer spending markedly increased, particularly across the key customer
verticals where we excel;
• supply chain congestion with inflated shipping and air freight costs, which are
reflected in our revenues;
• the number of new customers attracted to Mainfreight as a consequence of our
attitude to the delivery of high-quality logistic services; and, not least
• the wonderful efforts of our people, whose hard work and entrepreneurial spirit
found solutions for our customers in the face of unprecedented disruption.
Group Operating Cash Flows
Operating cash flows were $503.8 million, up from $376.3 million in the prior year,
reflecting increased profitability and satisfactory cash collection across all regions.
Current debt facilities total $494.3 million, of which $318.7 million remains undrawn. Net
debt at 31 March 2022, was a cheeky $1.1 million, down from $102.2 million at 31 March
2021. Gearing ratios continued to improve, at 0.1% compared to 8.4% at 31 March 2021.
During the year, net capital expenditure totalled $189.1 million, with expenditure for land
and buildings accounting for $109.4 million, warehousing racking and fit -out costs of
$35.3 million, plant and equipment of $27.4 million, and information technology of $17.0
million.
Our expected capital expenditure across the next two years is $540 million, of which
property will be $450 million. In conjunction with this, a further 54 leased opportunities
will be completed in this period. These are dominated by warehouses in New Zealand
and Australia, and Warehousing and Transport facilities in the Americas, Europe and
Asia.
- 3 -
Dividend
The Directors have approved a final dividend of 87.0 cents per share fully imputed at the
28% company tax rate. With the record date on 15 July 2022, payment will be made on
22 July 2022. This brings the full dividend for the year to 142.0 cents per share, an
increase of 89.3% over the prior year, and is a reflection of improved trading results and
our confidence in ongoing trading resilience.
Discretionary Bonus
Sharing our profits with those who have earned them is part of who we are. In line with
the profit improvement achieved, our discretionary profit bonus has increased to
$94.2 million, up 114.7% from $43.9 million for the year prior.
Our people have achieved much in the past year – for our customers, shareholders, and
for themselves. We are proud to share our profits with them.
Divisional Performance (figures in local currencies)
New Zealand (NZ$)
Revenue NZ$1.13 billion Up NZ$284.6 million or 33.7%
Profit Before Tax NZ$136.5 million Up NZ$38.7 million or 39.5%
Our New Zealand business has performed well and we continue to find opportunities for
more growth.
Our domestic Transport network handled record volumes, and at the height of
New Zealand’s pandemic response, delivered more freight direct into homes across the
motu than ever before. These volume increases, and a shortage of road and rail
equipment, impacted service levels through the later part of the 2021 calendar year.
Pleasingly, our quality measures have now returned to their usual levels.
Likewise, increased stock holding requirements of our customers squeezed our
Warehousing business to over-utilisation, reinforcing the decisions taken to invest in
larger facilities going forward.
- 4 -
For our Air & Ocean operations, a lack of international shipping and air capacity, has
proved frustrating to say the least, when trying to secure service and space for our export
and import customers.
Regardless of external issues, we remain confident the New Zealand business will see
improvements domestically, and we expect international trade capacity to improve as the
year progresses.
Expansion across our Transport and Warehousing networks continues to cater for the
increased freight tonnage. Planned capital investment in New Zealand for land and
buildings currently exceeds $195 million over the next two years. An order for a further
ten electric pickup and delivery vehicles has also been made.
Trading post year-end has been satisfactory.
Australia
(AU$)
Revenue AU$1.18 billion Up AU$297.9 million or 34.0%
Profit Before Tax AU$107.5 million Up AU$36.0 million or 50.3%
Our growth, development and investment in Australia continues.
We continue to gain market share and see improved volume growth across all three core
products.
Four new branches have been opened, with another six planned for 2023 ranging from
Mackay in the north to Tasmania in the south. It is our expectation, in the short- to
medium-term, that Sydney, Melbourne and Brisbane will have up to three Transport
facilities each, alongside multiple Warehousing sites.
Our South Dandenong, Melbourne Transport and Warehousing site will be completed
by year-end 2022, and construction of our largest leased warehouse at Moorebank,
Sydney has already begun with completion due April 2023. This is half the building time
of an equivalent site in New Zealand. The new (and larger) Adelaide and Perth facilities
remain under construction for completion in late 2022 and early 2023.
- 5 -
Air & Ocean customer volumes have been managed well under current capacity
constraints. More space availability is required across both ocean and air categories to
support our growing customer base. Negotiations to secure this growth continue with air
and sea freight carriers. New airfreight facilities for dry and perishable cargo in
Queensland are under construction and will be completed in 2023.
Trading post year-end continues to provide improvements on the year prior.
Europe (Euro €)
Revenue €567.9 million Up €140.4 million or 32.8%
Profit Before Tax €31.7 million Up €9.3 million or 41.7%
We are now located across ten countries in Europe; with a total of 47 branches and 3,138
people. As we intensify our network throughout these countries, we are developing
opportunities for further growth in Transport, Warehousing and Air & Ocean categories.
Financial performance in our Transport division, while improving, has been impacted by
a number of team members having to isolate during the peak of the pandemic.
Warehousing volumes and utilisation have continued to improve with additional
warehouse space now being sought, particularly across the Netherlands. Our UK
warehouse has increased in capacity, with transport pickup and delivery services now
being added as a consequence of this growth.
The Russia/Ukraine crisis has seen the closure of our Russian operations. An amount of
EU€1.5 million has been allocated to the P&L to facilitate this. Our Ukraine operation is
being managed remotely.
We remain pleased with our progress in Europe, particularly post year-end, and expect
further growth opportunities in the short- to medium-term.
- 6 -
Asia (US$)
Revenue US$231.0 million Up US$126.7 million or 121.5%
Profit Before Tax US$28.9 million Up US$21.8 million or 309.4%
Our best-ever performance across the Asia region was assisted by strong volumes of
export cargo from most Asian countries into the USA, closely followed by Trans-Atlantic
movements.
This was despite congestion and shortages of both shipping and air space, and container
equipment.
We are now well established across Asia and all nine countries are contributing
significantly to our overall financial performance in the region.
We will extend the network into Indonesia, opening in Jakarta mid-2022. As borders
re-open, we will look for further opportunities to expand to other countries.
Warehousing operations have commenced in a number of countries, albeit small in
comparison to the balance of our global network. Developing imports remains key to
increasing our Warehousing footprint.
The city-wide closure of Shanghai due to the pandemic is affecting both air and sea freight
volumes post year-end, however we remain confident these will return in the near future.
The Americas (US$)
Revenue US$1.09 billion Up US$512.5 million or 88.8%
Profit Before Tax US$100.8 million Up US$74.9 million or 289.0%
The performance from our Air & Ocean division has driven a significant lift in overall
profitability and performance. The volume surge and opportunities presented, particularly
in sea freight from Asia, has enabled our team to develop a significant presence in this
market segment. The flow-on into Transport and Warehousing has been pleasing.
- 7 -
Warehousing has extended its footprint, opening three new warehouses in
Pennsylvania, Texas, and Illinois.
Our Transport division is firmly focused on the LTL (less than truck load) freight market
across the USA/Canada and from Mexico. Growth has been satisfactory with 80% of our
volumes now handled within our own line-haul network.
Purpose-built Transport cross- dock facilities in the USA will be constructed and leased
over the next two years to deliver further efficiencies.
CaroTrans has improved its performance in the wholesale sea freight market,
experiencing larger LCL (less than container load) import volumes during the year.
Outlook
This result is our best ever. It was achieved in a difficult environment by our people who
have continued to exhibit passion and energy to deliver on behalf of our customers.
Much has been said about the artificial impact on our revenues of inflated air and sea
freight rates, and we accept this is a contributing factor. However the performance from
our Air & Ocean division also reflects growth achieved in our customer base, with our
ability to secure tightly-contested space allocations. Our Transport and Warehousing
divisions across all five regions have also improved their financial performance.
Supply Chain Congestion
It is our view that we will continue to see supply chain congestion across the world for the
immediate future. Ongoing lockdowns in Shanghai are restricting the movement of freight
to and from ports and airports, resulting in limited manufacturing capability.
The Russia/Ukraine crisis has resulted in restricted airfreight capability and the loss of
production from the region. These product shortages will have an impact on supply for
some time to come.
- 8 -
Shipping lines continue to manage space allocations tightly, container equipment
shortages remain, along with port congestion (particularly in the USA). Ocean freight
rates, while reducing from their peaks mid-2021, are expected to remain elevated in the
near future; similarly for air freight rates.
Irrespective of external factors, opportunities continue to present themselves for
Mainfreight as we invest in more infrastructure, our people, technology, and network. We
certainly believe that having our own global network is assisting our customers.
Trading in the seven weeks since the financial year-end has continued this trend of
improvement. However, we do not expect the quantum of profit improvement of this past
year to reoccur in the short term; rather we anticipate we will revert to our normal levels
of revenue and profit growth.
Mainfreight will release its financial results for the first half of the 2023 financial year to
the market on 10 November 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.
---
Distribution Notice
(for Equity Security issuer/Equity and Debt Security issuer)
Section 1: Issuer Information
Name of Issuer
Financial product name/description
NZX ticker code
ISIN
Full YearxQuarterly
Half YearSpecial
DRP Applies
Record date
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
earnin
gs)
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
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announcement
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(Please mark with an X in the
relevant box/es)
NZD
Mainfreight Limited
Ordinary Shares
MFT
NZMFTE0001S9
15/07/2022
14/07/2022
22/07/2022
$87,607,737
Retained Earnings
Section 3: Imputation Credits and Resident Withholding Tax
Is the Distribution imputed?
Fully imputed
Partial imputation
No imputation
$1.20833333
$1.20833333
$0.87000000
$0.15352941
$0.33833333
$0.06041667
Section 4: Distribution Re-investment Plan (not applicable)
28.0%
tim@mainfreight.com
26/05/2022
Tim Williams, Chief Financial Officer
Tim Williams
+64 9 259 5510
---
MAINFREIGHT
LIMITED
FULL
YEAR
RESULT
TO
31
MARCH
2022
Page
2
Result
Summary
Revenue
is
$5.22
billion
An
increase
of
47.2%
or
$1,674.42
million
(excluding
FX
up
50.8%)
Offshore
revenues
are
now
$4.09
billion:
78.3%
Profit
before
tax
is
$489.38
million
Increase
of
86.5%
or
$226.97
million
(excluding
FX
up
90.5%)
Offshore
PBT
now
$352.9
million:
72.1%
Net
profit
up
88.9%
to
$355.40
million
No
abnormals
in
F22
or
F21
REVENUE
PBT
NET
PROFIT
Page
3
Full
Year
2022
Overview
Improved
performance
from
all
five
regions
Yes,
Air
&
Ocean
improvements
are
substantial,
but
so
are
the
returns
in
our
Transport
and
Warehousing
divisions
Capital
expenditure
commitment
approximately
$540
million
over
next
two
years
Page
4
Dividend
Directors
have
approved
a
final
dividend
of
87.0
cents
per
share
Books
close
15
July
2022;
payment
on
22
July
2022
Full
dividend
for
year
142.0
cents
per
share,
increase
89.3%
over
the
previous
year
DIVIDEND
Page
5
Discretionary
Bonus
Payable
at
Board’s
discretion
to
qualifying
team
members
Up
114.7%
from
$43.88
million
last
year,
to
$94.20 million
BONUS
Page
6
Capital
Management
NZ$
MILLION
THIS
YEAR
LAST
YEAR
Operating
cash
flow
$503.80
$376.28
Net
capital
expenditure
totalled
$189
million
for
the
period,
including
Land
&
Buildings
$109 million
Racking
&
Fit
‐
out
Costs
$35 million
Plant
&
Equipment
$28 million
Information
Technology
$17 million
Page
7
Net
debt
reduction
of
$101.1 million
to
$1.1
million
Debt
facilities
$494 million
Undrawn
$318 million
Property
valuation
now
$1.031
billion
Land
revaluations
rose
$67.6
million
after
tax
– booked
Building
revaluations
rose
$26.0
million
after
tax
– unbooked
Capital
Management
continued
NET DEBT
PROPERTY
Page
8
Full
Year
Analysis:
Revenue
$000
THIS
YEAR
LAST
YEAR
VARIANCE
New Zealand:
NZ$
1,130,399
845,554
33.7%
Australia:
AU$
1,175,041
877,156
34.0%
Europe: EU€
567,906
427,522
32.8%
Americas: US$
1,089,422
576,909
88.8%
Asia: US$
231,008
104,284
121.5%
Total
Group:
NZ$
5,218,259
3,543,838
47.2%
(excl FX
50.8%)
Page
9
Full
Year
Analysis:
Profit
before
Tax
$000
THIS
YEAR
LAST
YEAR
VARIANCE
New Zealand:
NZ$
136,479
97,814
39.5%
Australia:
AU$
107,497
71,504
50.3%
Europe: EU€
31,664
22,351
41.7%
Americas: US$
100,831
25,923
289.0%
Asia: US$
28,852
7,047
309.4%
Total
Group:
NZ$
489,381
262,407
86.5%
(excl FX
90.5%)
Page
10
Prior
Period
Comparisons
Positive/(Negative)Variances
Revenue
Profit Before
Tax
1H
22 2H
22 FY
22 1H
22 2H
22 FY
22
New Zealand
31.6% 35.4% 33.7% 28.2% 46.6% 39.5%
Australia
30.2% 37.1% 34.0% 45.7% 53.8% 50.3%
Europe
34.4% 31.5% 32.8% 77.8% 25.0% 41.7%
Americas
78.0% 97.0% 88.8% 309.7% 278.8% 289.0%
Asia
157.0% 96.7% 121.5% 189.2% 465.0% 309.4%
Total
Group
41.4% 52.1% 47.2% 78.0% 92.0% 86.5%
Page
11
Product
Performance
NZ$000
THIS
YEAR LAST
YEAR
VARIANCE
Transport
Revenue
1,914,902 1,610,741
18.9%
Profit
before
tax
183,861
140,527
30.8%
Warehousing Revenue
583,821
452,116
29.1%
Profit
before
tax
55,262
42,207
30.9%
Air
&
Ocean
Revenue
2,719,535 1,480,981
83.6%
Profit
before
tax
250,258
79,673
214.1%
Page
12
Volume
Analysis
NZ$000
THIS
YEAR LAST
YEAR
VARIANCE
Air
& Ocean
Seafreight TEU
424,610
347,638
22.1%
Airfreight
kilos
(000s)
138,279
114,736
20.5%
Transport
Tonnes*
7,286,572 7,660,242
(4.9)%
Consignments
9,613,669 9,010,213
6.7%
Warehousing Footprint
(m
2
)
929,502
804,291
15.6%
*
Excluding
Europe,
overall
tonnage
increased
12.9%;
Europe
has
reduced
FTL
freight
in
favour
of
more
LCL
Page
13
Customer
Trading
Top
500
Customers:
Use
of
Mainfreight
Divisions
(Transport/Warehousing/Air
&
Ocean)
Top
500
Customers
using
us
in
two
or
more
regions
increased
to
69%
from
64%
Top
500
Customers
=
56%
of
total
revenue
(last
year
55%)
Of
the
146
customers
new
to
the
Top
500,
68
previously
sat
in
the
501
‐
1000
range,
and
78
customers
are
either
new
altogether
or
sat
outside
the
Top
1000
29%
39%
32%
2021
31%
36%
33%
2022
1
Division
1
Division
2 Divisions
2 Divisions
3 Divisions
3
Divisions
Page
14
Mainfreight
Network
Our global network continues to benefit our customers, particularly with space allocations, rates and access to markets
Page
15
New
Zealand
Record
volumes
across
all
divisions
Significant
home
deliveries
pre
‐
Christmas
4
th
quarter
performance
better
than
expected
despite
Omicron
challenges
Warehouse
capacity
exceeded
New
temporary
sites
covering
time
lag
to
delivery
of
new
sites:
Auckland,
Hamilton,
Tauranga,
Wellington,
Christchurch
Air
&
Ocean
strongly
skewed
towards
imports
Trading
post
‐
year
end
steady
and
ahead
of
prior
year
Revenue
$1,130m
33.7%
Profit
before
Tax
$137m 39.5%
Page
16
New
Zealand
11
new
land
&
building
projects
2023/24
10
new
lease
facilities
2023/24
New
country
leadership:
Carl
George
Promoted
from
within
27
years
with
Mainfreight
Last
role:
GM
New
Zealand
Transport
Page
17
Australia
Significant
financial
improvement
across
Transport
and
Air
&
Ocean
As
with
NZ,
4
th
quarter
performance
satisfactory
despite
Omicron
challenges
Warehousing
improved,
but
not
to
the
same
extent
–as
additional
warehouses
taken
on
short
‐
term
leases
for
capacity
requirements
Regional
network
extended
for
Transport
Southwest
Melbourne
(Dandenong)
and
Adelaide
sites
due
for
completion
last
quarter
of
2022
Revenue
AU$1,175m
34.0%
Profit
before
Tax
$107m 50.3%
Page
18
Australia
Air
&
Ocean
benefitting
from
increased
air
and
sea
volumes
Space
constraints
inhibiting
growth
Trading
post
‐
year
end
steady
and
ahead
of
prior
year
4new
land
&
building
projects
2023/24
25
new
lease
facilities
2023/24
Page
19
Europe
Significant
improvement
in
Air
&
Ocean
performance
Transport/Warehousing
results
satisfactory
Impacted
by
team
isolating
during
pandemic
Trading
post
‐
year
end
continues
to
see
improvement
in
performance
Network
expansion
progressing
slowly;
operations
Russia
closed
3
new
building
&
property
leases
2023/24
Revenue
EU€568m
32.8%
Profit
before
Tax
EU€32m
41.7%
Page
20
Asia
Volume
surge
across
trans
‐
Pacific
east
‐
bound
trade
lanes
has
assisted
result
Air
and
seafreight
capacity
tight,
but
greater
space
allocations
than
expected
Southeast
Asia
performance
very
satisfactory
Continuing
to
intensify
network,
within
existing
countries
and
adding
Indonesia
(Jakarta)
Trading
post
‐
year
end
slightly
reduced
on
year
prior
due
to
Shanghai
lock
‐
down
6new
leased
buildings
2023/24
Revenue
US$231m
121.5%
Profit
before
Tax
US$29m 309.4%
Page
21
The
Americas
Revenue
US$1,089m
88.8%
Profit
before
Tax
US$101m 289.0%
Exceptional
performance
from
Air
&
Ocean
Trans
‐
Pacific
east
‐
bound
trade
lanes
Across
both
air
and
sea
freight
Warehousing
increasing
performance
satisfactorily
Three
new
sites
in
Texas,
Pennsylvania
and
Illinois
Pipeline
well
advanced
for
further
growth
Transport
firmly
focused
on
LTL
development
80%
moved
“in
‐
house”
Owner
Drivers:
210
and
growing
Purpose
‐
built
USA
cross
‐
dock
facilities
will
begin
to
be
implemented
Page
22
The
Americas
CaroTrans
Increased
LCL
volumes
Strong
import
bias
Trading
post
‐
year
end
slightly
reduced
for
Air
&
Ocean
(Shanghai
effect);
Transport
and
Warehousing
are
trading
satisfactorily
11
new
leased
sites
2023/24
New
country
leadership:
Jason
Braid
Promoted
from
within
25
years
with
Mainfreight
Last
role:
GM
Air
&
Ocean
Europe
Page
23
Future
Capital
Expenditure
Update:
F22
‐
F23
NZ$
MILLION
F23
Planned
Capital
Expenditure
$345
Land
&
Property
$235
Racking
&
Fit
‐
out
costs,
Group
$65
Non
‐
property
capex
$45
NZ$
MILLION
F24
Planned
Capital
Expenditure
$195
Land
&
Property
$128
Racking
&
Fit
‐
out
costs,
Group
$20
Non
‐
property
capex
$47
Page
24
Sustainability
(calendar
years
2021
and
2020)
CO
2
EMISSIONS
SOURCE
2021
2020
Var 2021 2020
Road
/
Rail
473,930 467,101
1.5% 49.65 58.46
Air
943,337 706,239 33.6% 1.20 1.21
Sea
226,769 261,739 (13.4)% 0.09 0.12
Indirect Freight
Emissions
1,644,036 1,435,079 14.6%
Direct
Operational
Emissions
36,063
33,967
6.2%
Total
Emissions
1,680,099 1,469,046 14.4%
Carbon
footprint
growth
overall,
due
to
volume
growth
and
change
of
mix
of
airfreight
All
intensity
factors
have
improved,
ie
reduced
Intensity
Factor
Page
25
Group
Outlook
Expect
supply
chain
congestion
to
continue
well
into
2022
calendar
year
Shanghai,
Russia/Ukraine
adding
to
issues
USA
port
labor
negotiations
likely
to
impact
throughput
Container/chassis
shortages
still
affecting
USA
ports
Expect
peak
season
ex
Asia
to
coincide
with
volume
release
from
Shanghai
Air
&
Ocean
rates
to
reduce
but
not
to
pre
‐
2019
levels
Seafreight
–mix
of
contract
and
spot
rates,
reaching
parity
Shipping
lines
still
tightly
controlling
space
availability
Airfreight
access
increasing
with
belly
space
on
passenger
flights,
however
freighters
required
to
assist
Expect
25%
increase
in
global
airfreight
by
2025
Expectation
our
Air
&
Ocean
volumes
will
continue
to
grow
Page
26
Group
Outlook
...
Transport
volumes
and
organic
growth
will
see
ongoing
improvement
in
all
regions
However
driver
shortages
across
Europe
due
to
conflict
in
Ukraine
Maintaining
strong
focus
on
LCL
volume
growth
Warehousing
capacity
increasing
to
cope
with
new
customer
demand
Expect
“just
in
case”
stock
to
reduce
Expect
customers
to
source
differently
and
focus
on
high
margin
stock
Wage
&
salary
review
of
5+%
applied
from
1
April
across
all
regions
Page
27
Group
Outlook
...
Customer
rate
reviews
applied,
effective:
New
Zealand
2
May
2022
Australia
1
April
2022
Europe
1
January
2022
Americas
1
June
2022
Do
not
expect
the
same
quantum
of
improvement
this
year
to
roll
into
next
year’s
results
Our
network
intensification
assists
Transport
and
Warehousing,
and
is
a
key
differentiator
for
us
globally
in
Air
&
Ocean
Domestically:
all
regions
expanding
their
networks,
including
warehouses
Globally:
Indonesia
to
open
mid
‐
2022;
India
and
Nordic
countries
are
of
interest
Page
28
Group
Outlook
...
As
per
regional
commentary,
April/May
trading
has
produced
improved
results
on
the
same
period
last
year
Despite
inflation/recession
concerns
we
remain
confident
of
continued
growth
and
improving
performance
Page
29
Financial
Calendar
F23
DATE
Annual
Meeting
of
Shareholders
28
July
2022
Investor
Day
–West
Auckland
Facility
21
October
2022
F23
–6
months
ended
30
September
2022
10 November
2022
F23
–12
months
ended
31
March
2023
25
May
2023
Page
30
Face the challenge with a smile
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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