Mainfreight Limited (NZX: MFT) Half Year Financial Results 30 September 2021

Thursday 11th November 2021

Financial result for the six months ended 30 September 2021 (Unaudited)

Commentary

Mainfreight is pleased to announce our half-year financial results to 30 September 2021. These are in line with our expectations and reflect the ongoing development of our global network, with all five regions contributing strongly to the improved financial performance.

Revenue $2.274 billion Up $665.52 million or 41.4%

Profit before tax $181.99 million Up $79.72 million or 78.0%

Net profit $130.81 million Up $57.89 million or 79.4%

- The impact of foreign exchange is considerable. Excluding FX, Revenue is increased 48.2%, Profit before tax by 86.2%, and Net profit by 87.9%.

- There are no abnormal items in the current year, nor the year prior.

- An interim dividend of 55 cents per share has been set by the Board of Directors, payable on 17 December 2021; an increase of 83.3%.

We are pleased with this result, particularly in light of supply chain congestion and ongoing lockdown disruptions across most markets.

Air & Ocean revenue performance in all regions has increased because of higher air and sea freight rates and an increase in freight tonnage as a result of market share gains and consumer demand. We remain focused on solutions for our customers as we navigate congested supply chains across a wide range of trade lanes, both domestically and internationally.

Dividend

The Board of Directors has approved an interim dividend of 55 cents per share fully imputed at the 28% company tax rate, with the books closing on 10 December 2021; and payment made on 17 December 2021. This is an 83.3% increase on the prior year’s interim dividend.

Outlook

We remain satisfied with this financial result for the half-year.

Increased consumer demand, ongoing market share activity, and elevated international shipping and airfreight rates contribute to the result.

Our exposure to 26 different countries across five regions is providing a significant competitive advantage. Our network intensification continues to increase our regional coverage in most countries. However, the unprecedented supply chain congestion and demand has required delivery expectations be extended.

Trading post the half-year has seen a continuation of current financial and volume trends; at times significantly ahead of the prior year. We remain optimistic these levels of activity and growth will continue across our global network for the remainder of this financial year and into the next. Service levels for our customers is our key consideration in light of the significant freight volumes being handled by our people across our networks.

Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. In light of current trends, we will provide a nine-month trading update mid-February 2022.

Please see the links below for details

Mainfreight Financial Statements to 30 September 2021

Mainfreight Commentary HY to 30 September 2021

Mainfreight Distribution Notice Interim Dividend December 2021

Mainfreight Half Year F22 Presentation

Mainfreight NZX Results Announcement to 30 September 2021

Source: Mainfreight Limited

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