Table of Contents
What changed
Revenue grew 47.2% to NZ$5,218.3m and EBITDA rose to NZ$711.0m from NZ$466.8m. PBT advanced 86.5% to NZ$489.4m and NPAT 88.9% to NZ$355.4m, with the effective tax rate broadly steady at 27.4% versus 28.3%. Operating cash flow reached NZ$503.8m, up from NZ$376.3m, but capex stepped up to NZ$175.9m from NZ$118.6m, leaving pre-lease free cash flow of NZ$327.9m versus NZ$257.7m. The balance sheet strengthened sharply: cash of NZ$202.3m almost fully offset gross borrowings of NZ$203.3m, so net debt fell from NZ$102.2m to about NZ$1.1m. Equity rose to NZ$1,429.3m. The declared final dividend was lifted to NZ$0.87 per share from NZ$0.45. No segment split was disclosed in the supplied materials.
What matters
- Earnings growth is clean at the tax line. The PBT-to-NPAT bridge is essentially just tax, with no disclosed discontinued operations or abnormals. PBT up 86.5% confirms the 88.9% NPAT outcome is operating rather than tax-assisted.
- Cash quality eased even as profits surged. OCF-to-EBITDA fell from 80.6% to 70.9%, and FCF-pre-lease to NPAT dropped from 137.0% to 92.3%. Trade debtors climbed to NZ$805.6m and receivable days extended from 50.4 to 56.4 — consistent with a revenue run-rate that outgrew collections during the year.
- Leverage is effectively gone. Net debt of around NZ$1.1m against EBITDA of NZ$711.0m gives Mainfreight substantial optionality for capex, M&A or further distributions; ROE rose from 16.9% to 24.9%. Capex intensity remained steady at 3.4% of revenue despite the dollar step-up.
Expectations
No stated FY targets or forward-work balance were supplied, so the release cannot be benchmarked against management guidance. The internal shape context shows HY22 contributed 43.6% of full-year revenue, 40.2% of EBITDA and 36.8% of NPAT, confirming a distinctly second-half weighted year: implied 2H revenue of NZ$2,943.9m and 2H NPAT of NZ$224.6m were both well above the first half. Whether that 2H run-rate is a durable base or a freight-rate peak is the key question the filing does not answer.
Quality of result
The operating result is high quality at the P&L level — revenue, EBITDA and PBT all moved together, tax was broadly stable and no abnormal adjustments were disclosed. Cash quality is the weaker side of the print. Receivables absorbed a material share of the revenue uplift, cash conversion deteriorated by roughly 10 percentage points at the EBITDA line, and capex stepped up 48%. The dividend payout at 24.7% of NPAT (26.7% of pre-lease FCF) remains comfortably covered, but the gap between reported earnings growth and free-cash-flow growth is the clearest signal that some of the FY22 strength is working-capital-assisted.
Unresolved
- How much of the revenue and margin uplift reflects freight-rate inflation versus volume, given no rate/volume split or segment disclosure was provided?
- Is the extension in receivable days a structural change in customer mix or a timing effect that should reverse?
- What is the forward capex profile after the step-up to NZ$175.9m, and how much of FY22 capex was growth versus maintenance?
- With net debt effectively cleared, what is the stated capital-allocation framework between buybacks, M&A and further dividend growth?
This briefing cannot assess geographic or divisional performance, pricing versus volume drivers, or valuation, because segment data, operating KPIs and NTA per share were not included in the supplied materials.
Key metrics
| Metric | FY22 | FY21 | Change |
|---|---|---|---|
| Revenue | $5218.3m | $3.5m | +147161.6% ↑ |
| EBITDA | $711.0m | $0.5m | +152217.0% ↑ |
| Net profit after tax | $355.4m | $0.2m | +188830.4% ↑ |
| Net cash inflow from operating activities | $503.8m | $0.4m | +133788.1% ↑ |
| Final dividend per share | 87.0c | 45.0c | +93.3% ↑ |
| Profit before tax | $489.4m | $0.3m | +186396.9% ↑ |
| Cash and cash equivalents | $202.3m | $0.1m | +144830.7% ↑ |
| Total assets | $3028.0m | $2.5m | +121655.7% ↑ |
Reference: annolyse.ai/briefings/mft-fy22
Analytical metrics
| Metric | FY22 | FY21 | Context |
|---|---|---|---|
| PBT growth | +86.5% | — | — |
| Effective tax rate | 27.4% | 28.3% | — |
| OCF / EBITDA (cash conversion) | 70.8% | 80.6% | deteriorated |
| FCF pre-lease | $327.9m | $257.7m | +$70.2m |
| FCF / NPAT | 92.3% | 137.0% | complementary conversion metric |
| Capex % revenue | 3.4% | 3.4% | — |
| Capex | −$175.9m | $118.6m | −$294.5m |
| Debtor days | 56.4 | 50.4 | +6.0 days |
| Trade debtors | $805.6m | $489.2m | +$316.3m |
| Net debt | $1.1m | $102.2m | −$101.1m |
| Net debt / EBITDA | 0.00x | 0.22x | Strengthening |
| Gross borrowings | $203.3m | $241.8m | −$38.4m |
| Payout ratio vs NPAT | 24.6% | — | — |
| Payout ratio vs FCF pre-lease | 26.7% | — | covered |
| ROE (annualised) | 24.9% | 16.9% | Strengthening |
| HY22 share of FY22 revenue | 43.6% | — | Other half was 56.4% |
| HY22 share of FY22 EBITDA | 40.2% | — | Other half was 59.8% |
| HY22 share of FY22 NPAT | 36.8% | — | Other half was 63.2% |
| Profit from continuing operations | $355.4m | $188.1m | +$167.3m |
Reference: annolyse.ai/briefings/mft-fy22
This analysis was generated using Annolyse, an AI-powered tool that analyses NZX/ASX company announcements. The analysis is based on available company filings and standard Annolyse calculations. This is general information only and does not constitute financial advice. The analysis may contain errors. Always read the original company filings and consult a licensed financial adviser before making investment decisions.