Tax changes hit Mainfreight's record result

Mainfreight (NZX:MFT) has announced an unaudited net profit before abnormal expenses of $47.24 million for the year to March 31, up 23% from last year ($38.25 million).

These abnormal expenses included $16.9 million deferred tax on long-lived buildings due to the government’s recent changes to the tax rules around depreciation.

With these items included net profit was $25.7 million, down from last year's result of $36.4 million.

Ebitda reached a record $91.58 million.

The company says the record results were achieved through improved performance from all divisions across all countries.

“Across all divisions in Australasia, Asia and the United States we are performing better and have been able to reintroduce our full team discretionary bonus, along with our regular wage and salary reviews.



“The sizeable acquisition of the Wim Bosman Group provides us with an important European footprint. Our ability to embed that company into our growing network will deliver considerable opportunities. 



“Following year-end we have also established a small beachhead in Santiago, Chile for CaroTrans. This is our first presence on the South American continent.



“These global initiatives provide an excellent platform from which to develop our world-wide supply chain logistics ambitions and strategies.”

Total revenues for the New Zealand group operations increased 10.0% to $412.57 million from $374.97 million.

Ebitda improved 8.6% to $47.86 million but dropped to 52.3% of total group ebitda as the profitability of its offshore operations grew.

In its New Zealand Domestic operations, revenues improved 8.7% to $290.76 million, and ebitda improved 8.3% to $42.25 million.

In its New Zealand International operations, revenues improved 13.3% to $121.81 million. Ebitda improved 11.4% to $5.61 million.

Total revenues for the Australian group operations increased 20.4 % to $472.29 million from $392.33 million and ebitda improved 14.1% to $25.63 million.

Australian Domestic operations revenues improved 18.8% to $225.29 million and ebitda improved 27.4% to $16.91 million.

Australian International operations revenues improved by 21.9% to $247.00 million but ebitda declined 5.2% to $8.72 million.

Revenue in Mainfreight’s Asian operations increased by 29.8% to $36.17 million and ebitda improved 68.7% to $3.47 million.

Combined revenues in the USA increased 24.8% to $420.47 million and ebitda improving 101.3% to $14.63 million despite the poor health of the American economy.

Operating cash flows were $71.78 million up from $53.69 million, with an improvement in working capital movement of $13.6 million, largely due to bonus and acquisition cost accruals.



During the year net capital expenditure totalled $18.14 million. Property development accounted for $8.72 million of this. 



Net debt decreased to $47.55 million from $82.89 million due to US dollar loan currency fluctuations and low capital expenditure during the year.



The directors have approved a final dividend of 11c per share fully imputed at the 30% company tax rate, with the books closing on 15 July 2011; payment will be made on 22 July 2011.

This takes the full dividend for the year to 20c per share. 

Mainfreight shares were at $9.26 before the market opening today.