{"id":130449,"date":"2025-11-12T00:59:08","date_gmt":"2025-11-12T00:59:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/130449\/"},"modified":"2025-11-12T00:59:08","modified_gmt":"2025-11-12T00:59:08","slug":"mainfreight-profit-drops-18-5-as-higher-costs-hit-first-half","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/130449\/","title":{"rendered":"Mainfreight profit drops 18.5% as higher costs hit first-half"},"content":{"rendered":"\u201cMuch will depend on the response to the moderately positive outlook comments and how they square with what people were thinking,\u201d Goodson said.<\/p>\n
Harbour Asset Management portfolio manager Shane Solly said the result was soft, \u201cbut not as bad as the market had expected\u201d.<\/p>\n
Shares in Mainfreight had sunk as low as $58.60 in the lead-up to today\u2019s release.<\/p>\n
By division, New Zealand\u2019s profit before tax was down 7.4% at $44.1m while Australia\u2019s pre-tax profit was down 3.8% at A$58.2m.<\/p>\n
Europe\u2019s pre-tax profit fell by 31.9% to \u20ac9.3m while Asia\u2019s pre-tax earnings fell by 5% to US$5.6m.<\/p>\n
The Americas\u2019 pre-tax earnings slumped 128% to US$2.3m.<\/p>\n
In its commentary, Mainfreight said its trading performance across the NZ divisions had improved as the half year had progressed. <\/p>\n
\u201cProperty cost increases for our Transport and Warehousing divisions contributed to the disappointing profit reduction,\u201d the company said.<\/p>\n
Looking ahead, Mainfreight said it expected the Australian and NZ businesses would continue to see improvement over the second half.<\/p>\n
\u201cSales activities in both regions are increasing market share, and we are seeing improving freight volume increases from our customers,\u201d the company said.<\/p>\n
Asia would continue to trade at current levels, it said.<\/p>\n
Improvements would be dependent on the ocean freight rate and freight tonnage.<\/p>\n
Mainfreight\u2019s European operations had reduced labour costs as new customers were settled into its warehouses. <\/p>\n
This should improve efficiencies and increase profitability, it said.<\/p>\n
\u201cIn the Americas we have had a number of sales gains across all divisions, which will improve our performance.\u201d<\/p>\n
Looking ahead, Mainfreight said: \u201cWe remain well positioned to continue to find market share opportunities and to take advantage of improving economic conditions as they occur across our international network\u201d.<\/p>\n
The company – NZ\u2019s biggest logistics firm – declared an 85c per share dividend – unchanged from the previous comparable period.<\/p>\n
Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.<\/p>\n
Listen and subscribe to the Today in Business<\/a> podcast \u2013 the top headlines from the NZ Herald business team summarised and delivered by an artificial intelligence (AI) voice as an easily digestible recap.<\/p>\n","protected":false},"excerpt":{"rendered":"\u201cMuch will depend on the response to the moderately positive outlook comments and how they square with what…\n","protected":false},"author":2,"featured_media":130450,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[90021,36172,806,138,1656,802,127,28796,3592,1888,15218,2964,13484,3594,17382,90020,1132,111,139,69,1523,5340,42569,5352,8037,180,112],"class_list":["post-130449","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-90021","tag-36172","tag-as","tag-business","tag-company","tag-costs","tag-despite","tag-drops","tag-fall","tag-first","tag-firsthalf","tag-half","tag-higher","tag-hit","tag-logistics","tag-mainfreight","tag-million","tag-new-zealand","tag-newzealand","tag-nz","tag-over","tag-profit","tag-rallied","tag-reporting","tag-september","tag-shares","tag-transport"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/130449","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=130449"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/130449\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/130450"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=130449"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=130449"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=130449"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}