Mainfreight Limited · NZX:MFT
Mainfreight — H1 FY2024 Earnings Presentation
16 slides from Mainfreight's earnings presentation, November 2023
Slide 1: Mainfreight Limited Half Year Result to 30 September 2023
MAINFREIGHT LIMITED Half Year Result to 30 September 2023
Slide 2: Result Summary
Result Summary • Revenue $2.36 billion down 21.6 % • PBT $174.8 million down 42.1 % • Net Profit $ 124.55 million down 42.6 % • People – 10,811 down 500 • Branches – 332 up 1 • Countries – 26 – no change
Slide 3: Half Year Overview
Half Year Overview • Adjusted for foreign exchange impact, Group Revenue is down 23.0%, Profit before tax is down 42.5%, and Net profit is down 43.0% • Bonus Accrual $20 million v $51 million last year • Operating Cash flows declined from $291.4 million to $186.8 million and reflects the reduction i
Slide 4: Dividend
Dividend • Directors have approved an interim dividend of 85 cents per share • Books close 8 December 2023 • Payment on 15 December 2023 “Balance sheet strength allows us to maintain at last year’s level”
Slide 5: Capital Management
Capital Management Operating Cash Flow $186.8 million v $291.4 million $ last year “Reflects reduction in profitability” Net Capex $127 million - $94 million on property Net Funds (Debt) reduction to $20.9 million in funds, down from $122.8 million at 31 March 2023 “Cash at hand” Debt facilities $49
Slide 6: Future Capital Expenditure Update: F24 - 25
Future Capital Expenditure Update: F24 - 25 2024 2025 NZ$ MILLION F24 NZ$ MILLION F25 Planned Capital Expenditure $272 Planned Capital Expenditure $291 ▪ Property $148 ▪ Property $151 ▪ Fit-out costs $64 ▪ Fit-out costs $80 ▪ Non-property capex $60 ▪ Non-property capex $60 Property and Fit-out costs
Slide 7: CAPEX for 2024 / 2025 Reduction
CAPEX for 2024 / 2025 Reduction Major items are: (NZ$) • Europe $ 66 million • Netherlands cross-dock land & building delayed until 2026 • Australia • Perth land – deferred $ 32 million • Brisbane Transport delayed until 2026 $ 27 million ____________ $125 million
Slide 8: Current Trading Environment (Half Year Analysis)
Current Trading Environment (Half Year Analysis) PROFIT NZ$000 REVENUE* VAR % VAR % BEFORE TAX New Zealand NZ$ 556,912 13.6% 61,086 18.0% Australia AU$ 632,932 9.2% 56,487 10.6% Americas US$ 324,828 42.3% 11,987 79.7% Europe EU€ 282,195 13.7% 12,544 46.6% Asia US$ 48,898 51.3% 6,55
Slide 9: Trading Update: Our Core Products
Trading Update: Our 3 Core Products (NZ $) Revenue: $1,087.68 million down 2% TRANSPORT PBT: $ 73.44 million down 33% September improvement in domestic Transport trading results across Australasia Revenue: $393.30 million up 11% WAREHOUSING PBT: $ 27.16 million down 6% Continues to improve across al
Slide 10: Region Performance: New Zealand
Region Performance: New Zealand • Transport • Volumes improving • September profitability is better than the year prior • Warehousing • Continues to trade ahead of the year prior • A number of significant gains for new warehouses • Development continues for new sites in Auckland and Christchurch • A
Slide 11: Region Performance: Australia
Region Performance: Australia • September trading continued to improve across Transport and Air & Ocean Warehousing slightly behind • Moorebank site operational from 1 November – exiting overflow warehouses • Industrial action across ports – of concern for all products leading into Christmas
Slide 12: Region Performance: Americas
Region Performance: Americas • Transport • Volumes on the increase – however, are marginally priced and impacting profitability • Senior leadership change – Mitch Gregor ex NZ • Warehousing • Operations performing satisfactorily • The Dallas site is fully utilised and has reduced overflow sites • Ad
Slide 13: Region Performance: Europe
Region Performance: Europe • Transport • Volume decrease is the largest of all our domestic activity • Rate review underway for January implementation • French performance disappointing • Warehousing • Activity and profitability remain ahead of the year prior • Additional sites established and in pl
Slide 14: Region Performance: Asia
Region Performance: Asia • Slowing freight demand in Transpacific ex China impacting performance • SE Asia development and growth continuing satisfactorily – smaller markets to China • A strong focus on European and Australasian growth to offset China exports • Includes stronger import growth and As
Slide 15: Group Outlook
Group Outlook • A more normalised trading environment in front of us • The level of sales activities is pleasing and provides confidence for the near future • Volume increases in NZ and Australia are providing confidence • Overhead cost structures are being managed well • Capital Expenditure reducti
Slide 16: To Close: Trading Dates
To Close TRADING DATES F24 – 12 months ended 31 March 2024 29 May 2024 Annual Meeting of Shareholders 25 July 2024 F25 – 6 months ended 30 September 2024 13 November 2024 “Expect some form of normality to resume”