Don Braid: Mainfreight CEO on the company's 20 percent profit drop

Shares in Transport and logistics company Mainfreight have rallied today, despite the company posting an 18.5 percent drop in first-half profit.

The result's better than expected, with performance improving and expected to rise more.

Mainfreight CEO Don Braid says they've had a tough start to the year, but he feels things are improving ahead of the new year.

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Episode Transcript

Speaker 1 (00:00):
Now it's another tough six months for Main Freight. The
logistics business has posted a net profit after tax of
ninety three million dollars for the half year. That's down
eighteen and a half percent, and the company's operations and
the Americas have performed poorly, making a loss of two
point three million dollars. Don Braid is Main Freight's group
managing director. Hey Don, Hey, Heather, how are you very well?
Thank you? So what are the challenges you've been facing here?

Speaker 2 (00:23):
Oh? All sorts are you know?

Speaker 3 (00:25):
We have had a tough start to the year in
the first quarter, and that result that we've produced for
the half year is actually better.

Speaker 4 (00:35):
Than what we saw in the first quarter that we
announced at the AGM. So it's improving and we certainly
feel a lot more boor into about what's in front
of us and an amount of market share gains, customers
sending more with us around the world, So we feel
a bit more positive as we head into the second
six months.

Speaker 1 (00:55):
So do you think things are going to get better
from here? You seeing signs of that.

Speaker 2 (01:00):
We are definitely with established customers sending more, spending more
with us, and market share gains of of our own
violation where we're winning business across the network.

Speaker 1 (01:14):
What do you think is going on with our attitude
towards tariff so we largely ignoring it?

Speaker 2 (01:21):
Well, my advice, I had the opportunity to be in
the US in the last three weeks, and my advice
to some of those people New Zealandy exporters who were
complaining about the fifteen percent, wanting it to be ten percent,
The reality is it's fifteen Get on with it, Increase

(01:41):
your pricing accordingly, and that's the game you're going to
have to play.

Speaker 1 (01:45):
Have they followed your advice?

Speaker 2 (01:47):
I'm not sure. I'm not sure there should be well
advised to do that either, and I'm not sure it's
that easy. But I do think that we are overly
fixated on it and it is the way the world
these days, so accept it.

Speaker 1 (02:01):
And that hoarding that was going on don at the
start ahead of the tariff's kicking in, where people were
sending just a whole bunch out ware housing. It has
that now ended.

Speaker 2 (02:10):
And there's still plenty of stock around. But certainly I
think what's happened overall is the nervousness of the tariff situation.
There's some sort of sensibility to whatever the tariffs are
going to be. Even this last session that they've had
with China, they've settled on a set of tariffs for
the next twelve months. That's giving people some confidence. So

(02:32):
they're getting on and doing business. Isn't amal now?

Speaker 1 (02:34):
I mean, because you operate in various parts of the world,
it gives you a really great view of what is
going on in our economy. What are you seeing here
in New Zealand? How are we going?

Speaker 2 (02:43):
It's better and it's got better, and certainly the last
couple of months and you know, the dark depths of
winter have definitely disappeared behind us, and we're seeing our
customers feeling more positive and sending more for it.

Speaker 1 (02:59):
Yeah, a big difference. Now, do you have a view
on the debate about the Ports of Auckland hiking the fees?

Speaker 2 (03:08):
Well, I do. Whether I want to share that with you,
I'm not sure. But what I would urge the Ports
of Auckland to do is that this will be further
imposs on exporters and importers. However, I urge them to
think about a multimodal approach rather than just a trucking approach.
And I think they're far too geared towards moving freight

(03:31):
on trucks rather than actually using rail off the port
and onto the port.

Speaker 1 (03:37):
Interesting don't always got to talk to you. Thank you
so much for your time, mate. That's Don Braid, Main
Freight Group Managing Director. For more from Heather Duplessy Allen Drive,
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