Sharechat Logo

Mainfreight aims to lift annual turnover to $2 billion by 2015

Thursday 29th July 2010

Text too small?

Mainfreight is aiming to almost double annual revenue to $2 billion by 2015, based mainly on increased overseas earnings particularly in China, the US, and South America.

By that time the NZX-listed company plans to have more than 300 branch locations around the world, be located in six European and three South American countries, as well as a branch network throughout Asia, including India.

“The goals published in this year’s annual report will be very challenging, and so they should be,” Mainfreight’s chairman Bruce Plested told shareholders at its annual meeting. “How else will we become a global company based and begun in New Zealand, without stretching ourselves?”

The company which recently announced a slightly increased net profit of $36.4 million on revenues that declined 10.5% to $1.13 billion compared with the previous year reacted quickly to the global economic crisis’ declining freight volumes and rates said managing director, Don Braid.

“Our response was to manage cost structures better and preferably at lower levels, improve margins and importantly, expand our market share by increasing our sale activities,” Braid said. “While the financial result for the year could be seen as satisfactory, it is below our expectations. However, the upside of the result is the momentum we are carrying into this new financial year, where the increase in sales revenues, maintaining our disciplines around costs and margin improvement will see an improved result for the first quarter.”

Mainfreight’s first quarter results, due on Aug. 19, are expected to reveal an EBITDA ahead of last year by as much as 30%.

Braid said that without the company putting a line in the sand, it would be likely to progress at a slower pace and not meet its ambitious goals. It has identified purchase targets in both Europe and South America that will be complementary to its growth and earnings profile.

Mainfreight’s offshore sales now exceed $757 million a year, or over $15 million a week. Braid said this figure will continue to grow as the company forges its way into new markets around the world.

Its shares lifted six cents today to $6.55.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Mainfreight gets 8.2M euros to settle claim with former Wim Bosman owners
Mainfreight earnings lag last year's, Australian unit struggles as parcel business weighs
Mainfreight flags plans for claim against former Wim Bosman owner
Mainfreight’s Braid 'impatient' on fix for Europe after region's underperformance dents earnings
Mainfreight earnings growth stalls as European struggle offsets record sales
Mainfreight warns of softer second half, flat earnings
Mainfreight's Braid says KiwiRail ferry strike ‘disruptive’ in peak week
Mainfreight's first half profit drop by 4.6 percent; dividend unchanged
Mainfreight 1Q profit falls 15% as Europe dents global sales