Mainfreight Limited · NZX:MFT
Mainfreight — FY2024 Earnings Presentation
16 slides from Mainfreight's earnings presentation, Mar 31, 2024
Slide 1: Mainfreight Limited Full Year Result to 31 March 2024
MAINFREIGHT LIMITED Full Year Result to 31 March 2024
Slide 2: Result Summary
Result Summary • Revenue $4.72 billion down 17% • PBT $395 million down 33% • Net Profit (before abnormals) $278 million down 35% • Net Profit (after abnormals NZ$69 million) $208 million • People – 10,644 down 667 • Branches – 337 up 6 • Countries – 27 up 1
Slide 3: Full Year Overview
Full Year Overview • While the result is in line with expectations, we should have performed better. • Satisfactory improvements in New Zealand and Australia. • Disappointing results in Asia/USA/Europe. • Discretionary bonus reduction from $80 million to $25 million. • Volume improvements – new cust
Slide 4: Dividend
Dividend • Directors have approved a final dividend of 87.0 cents per share. • Full dividend for year = 172.0 cents per share. • Books close 12 July 2024 • Payment on 19 July 2024 “Cash flow and balance sheet capability providing consistency in dividend payments
Slide 5: Capital Management
Capital Management Operating Cash Flows remains satisfactory $ $505 million v $ 757 million last year Net Capex $254 million - $128 million on property Net Funds (debt) reduction to $22 million “Cash at hand” Bank debt of $148 million, from a total available facility of $501 million
Slide 6: Future Capital Expenditure Update: F25 - 26
Future Capital Expenditure Update: F25 - 26 NZ$ MILLION F25 NZ$ MILLION F26 Planned Capital Expenditure $255 Planned Capital Expenditure $254 ▪ Property $149 ▪ Property $152 ▪ Fit-out costs $47 ▪ Fit-out costs $42 ▪ Non-property capex $59 ▪ Non-property capex $60 Property and Fit-out costs F25-F26 N
Slide 7: Brisbane Cross-Dock Project
Brisbane Cross-Dock Project Rear-loading initiative: Willawong, Brisbane • 34 rear-loading dock doors. • Four-sided dock with some allowance for side-loading. • Solar/Water collection as per all new builds. • Less square metres – more efficient. Site Sqm 15m Trucks Dandenong, Melbourne 20,890 45 Epp
Slide 8: Our 3 Core Products (NZ $) FY 2024
Our 3 Core Products (NZ $) FY 2024 Revenue: $2,188.88 million down 2.4% TRANSPORT PBT: $ 172.47 million down 24.5% Total tonnes reduced 6.2% Revenue: $784.79 million up 4.6% WAREHOUSING PBT: $ 59.65 million down 8.7% Total orders picked increased 12.3% Revenue: $1,744.12 million down 35.0% AIR & OCE
Slide 9: Full Year 2024 Analysis
Full Year 2024 Analysis PROFIT NZ$000 REVENUE* VAR % VAR % BEFORE TAX New Zealand NZ$ 1,124,062 12.5% 148,713 12.2% Australia AU$ 1,294,221 8.7% 128,470 6.1% Americas US$ 639,131 33.4% 21,755 75.6% Europe EU€ 557,224 11.6% 27,894 40.5% Asia US$ 96,530 36.8% 13,902 52.2% Group NZ$
Slide 10: New Zealand
New Zealand • Transport • Improving volumes / new customer gains. • Increased road linehaul activity over rail requiring an adjustment. • New Auckland cross-docks / rail served inland ports to assist. • Warehousing • Current capacity well utilized. • Four new sites will provide capacity for growth.
Slide 11: Australia
Australia • Transport • Healthy market share gains. • Some regional branches yet to find profitability. • Developing rail services to complement road. • Warehousing • Increased capacity with Moorebank opening. • Short-term profitability poor due to low utilisation levels and lease exits. • Air & Oce
Slide 12: Americas
Americas “Transport underperformance weighing on overall performance” • Transport • Tonnage improving, assisting utilisation. • Gross margins impacted – 2% down year-on-year. • Too many smaller branches yet to find profit. • Warehousing • Overall performance satisfactory – in line with prior year. •
Slide 13: Europe
Europe • Transport • Warehousing • Disappointing volumes intra-Europe. • Poorer second half – reduced warehousing activity • Poor performance across France, Poland and in Belgium. Romania. • Spare capacity in Netherlands and Romania – • Network development in Netherlands improving growth opportuniti
Slide 14: Asia
Asia • Trans Pacific Trade and European rates increasing – space allocations tightening / equipment shortages. • Stronger growth from South East Asian branches. • Airfreight continuing to increase. • BSA Airfreight agreements in place and providing capacity. • CaroTrans – developed a stronger networ
Slide 15: Group Outlook
Group Outlook • New Zealand and Australia trading post year-end is satisfactory. • Expect America improvement to take time, particularly Transport. Warehousing and Air & Ocean results satisfactory. • Asia back to pre-congestion development. • Volume and rate increases beginning to appear on USA and
Slide 16: To Close
To Close TRADING DATES Annual Meeting of Shareholders 25 July 2024 Investor Day - Dallas Texas 7 October 2024 Registration of interest to attend the Investor Day in USA should be made to Sharon Walshe at Sharon@mainfreight.com by end August F25 – 6 months ended 30 September 2024 13 November 2024