Mainfreight profit drops despite revenue increase

Mainfreight has reported a decline in profit for the six months ended September 30, 2024, despite an increase in revenue.

The company's net profit was $114.56 million, down 8% from the same period last year, while profit before tax decreased by 7.8% to $161.2m.

However, revenue rose by 8.4% to $2.55 billion.

The decline in profit was attributed to the continuing weakness in the New Zealand economy and increased overheads associated with new building facilities in Auckland.

In New Zealand, revenue was in line with the prior period, but profit before tax was down 22%.

In Australia, revenue increased by 20%, and profit before tax was up 8%.

The company's European operations had a satisfactory performance, while Asia and the Americas reported mixed results.

Mainfreight's operating cash flows increased, and it had $88.1m of net funds (debt).

An interim dividend of 85 cents per share was declared.