- 27 February 2006
Financial Result for the Nine Months Ended December 2005 (Unaudited)
The Mainfreight Group is pleased to report a net profit after taxation of $20.265 million for the first nine months of the 2006 financial year. This represents a $12.605 million increase when compared to the same period last year. EBIT grew from $14.785 million to $33.223 million, an increase of $18.785 million.
Consolidated revenues (sales) increased to $680.194 million from $671.117 million; an increase of $9.077 million. Excluding divested business units of Owens, and foreign exchange, this is an increase of 9.3%.
This improved group performance follows the trends from the previous quarters and will continue in the fourth quarter. All divisions contributed positively to this result.
The ongoing importance of our international expansion continues to be highlighted when comparing our overseas net surplus with that generated by our New Zealand divisions. Overseas net surplus has grown from 24.3% to 41.1% of Group Net Surplus for the comparable periods.
Divisional Performance
Divisional performance includes the Owens businesses and is quoted in New Zealand dollars.
New Zealand Domestic
EBIT improved to $18.073 million, an increase of 14.6%. Owens Transport continues to improve and assist these results. Total domestic revenues increased 2.2% to $203.934 million from $199.636 million.
For the comparative revenue period, Owens revenues are affected as non-profitable business was exited.
Current trading revenues in domestic freight are only on a par with the previous year.
New Zealand International
EBIT improved to $2.136 million from $1.658 million, an increase of 28.8%. Revenues for the period were $108.746 million, compared to $111.930 million. Revenues for the quarter produced an improvement on the previous year, reversing the earlier decline brought about by the loss of perishable freight revenue.
Australian Domestic
EBIT improved to a surplus of $3.278 million from $0.317 million last year, our best ever performance in this division. Revenues continue to improve with an increase of $8.322 million, up 11.8%. This progress in our Australian domestic operations is as predicted in our previous releases and continues into the fourth quarter.
Australia International
EBIT continues its strong performance increasing to $7.907 million from $4.675 million, an increase of 69.1%. Revenues are improved by 15.08% to $222.978 million. All business units have contributed, with significant contribution coming from our Projects division of Pan Orient Pty Ltd.
Ongoing business confidence within Australia continues to assist all of our Australian divisions and is continuing strongly through the fourth quarter.
USA International
EBIT maintains it’s improvement to $2.203 million from $1.049 million, an increase of 110%.
Our ongoing success in CaroTrans within our established trade lanes has allowed for further development. New branches are planned within the USA and the beginning of trade lane development with our China interests is showing positive results.
Revenues grew 14.1% to $65.76 million. Excluding foreign exchange movements, revenues grew 23.2%
Associates
Satisfactory returns were received from our associated businesses contributing $1.678 million to our net surplus. This compares to the exact same amount as last year.
Group Operating Cash Flows
Operating cash flows were $29.274 million surplus, compared to $1.500 million last year.
Last year’s results included large restructuring costs and working capital requirements for the Owens businesses.
Net capital expenditure during the third quarter totalled $6.53 million. $4.76 million was spent on property development.
There were no equity investments or divestments during the quarter.
This very satisfactory nine month performance continues to reflect the strength of the Mainfreight Group across all our divisions and continues the momentum of our growth outside of New Zealand.
Performance to the year end March 2006 is expected to reflect this current growth and the company remains positive for the 2007 financial year.
For further information, please contact:
Don Braid
Group Managing Director