Mainfreight reports 21.6% revenue drop in semi-annual results

Mainfreight has reported its financial results for the six months ending September 2023.

The company's revenue decreased by 21.6% to $2.36 billion, while profit before tax and net profit both declined by 42.1% and 42.6% respectively.

The decline in results is attributed to a return to a more normal trading environment compared to the previous year, which had exceptionally high freight volumes and rate structures.

The USA, Europe, and Asia were the most affected regions.

Operating cash flows decreased to $186.8 million, reflecting the reduction in profitability.

The company's net debt reduced to $20.9 million, and it has debt facilities totaling $499 million.

Mainfreight's divisions in New Zealand, Australia, the Americas, Europe, and Asia all experienced declines in revenue and profit before tax.

However, the company remains confident in its long-term growth prospects and expects a marginal improvement in the second half of the year.