MFT - Mainfreight. Global Freight & Logistics

[winner69]

As Mainfreight say - “ Special people, special company” embodies Mainfreight and its unique culture. We have developed a style of doing business successfully not only in New Zealand, but around the world.

That style of business is their ‘moat’ for want of a better word .....makes them great service and happy customers.

And very efficient at managing margins and costs.

A fre years old this but shows how they make good profits. I was working for a company who used Mainfreight for their logistics ...multi million $ contracts. Our Supply Manager and Purchasing people would always rave about how they got a great deal from Mainfreight in annual reviews. We became more cost efficient and productive wichbwasvgood ....but I had to reminding our Supply Chain people that Mainfreight kept increasing their reported margins as well.

Percy will tell you to read Ready Fire Aim: The Mainfreight Story ...great story

Mainfreight is no ordinary logistics company

[Greekwatchdog]

Hate to put a damper on it W69, but I have been dealing with then for 25 years. I find them ignorant and Arrogant. Don't update their tracking systems and their handling of product for mine bemusing. Cant figure out if the industry is just plain useless or these guys are so big that they are able to hide their inefficiencies.
Anyway congrats to shareholders but your company is far from perfect to deal with.

[glennj]

Can anyone tell me, briefly, what MFT's competitive advantages are? It doesn't make sense to me a logistic company, with intensive competition around, with limited world trade growth, why its SP rise constantly over the past 5 years?

They consistently seem to steal market share and still be profitable so they are doing some things right. Their good treatment of staff, owner drivers etc. seems to create an "attitude" advantage over competitors.

[Bjauck]

It sure has been one helluva ride. I just looked back on my first purchase of MFT in October 2009 at $5.40. I do not recall anytime in all those years that we haven't had many commentators here and elsewhere suggesting MFT being overpriced. Yeah right !

MFT have helped transport your portfolio to deliver good returns

FPH have been one of those stocks that has been "overpriced" over the years too!

[iceman]

Can anyone tell me, briefly, what MFT's competitive advantages are? It doesn't make sense to me a logistic company, with intensive competition around, with limited world trade growth, why its SP rise constantly over the past 5 years?

Like winner has said, I think their moat is the culture in the business lead by very able management, although not all customers will be happy as Greekwatchdog has pointed out. But I do note he/she has been doing business with them for 25 years so can't be all bad.

I think the fact that they decided early on to keep all "team members" on during COVID and encourage them to go out and be more visible with customers, resulting in over 100 new contracts that are now in their top 500 customers, says a lot about this business.
Management and Board also lead with temporary remuneration decreases and did not keep any wage subsidies.
This is the sort of can do attitude I like to see in the businesses I invest in and I have little doubt MFT should be a part of any long term NZX portfolio.

[Greekwatchdog]

Hi Iceman, On most occasions I don't get a choice as its dictated by supplier who pay's for freight, thou its already costed in product. If I had the choice I would have certainly changed or had them on notice. You still need to make sure next choice can do what they say they can.
Happy for shareholders but its not all Sweet smelling Roses at base level.

[clown]

The company I work for used CaroTrans for a while, their rates were cheaper for some routes, eg US but closer destinations were higher. The account manager I dealt with was top notch and professional. Other than shipping rates, I have no complaints, don't use them anymore as cost cutting measures have become a priority, we used to do about 12-14 shipments in the past few years, this year we've done 37 and still counting, so you can see how much volume has gone up for freight companies, so have the costs by shipping companies too. Happy to hold this one long term.

[porkandpuha]

Disc: Don't hold, never have, and probably never will as I work for a competitor so take this comment as you please but we had 2 fairly big clients jump ship from MFT to our stable on the back of COVID and MFT's inaction when it come to servicing their client base and keeping up comms during a period of uncertainty for logistics. Seemed to be a common theme for at least one of their departments in NZ.

I too hear of their great culture from friends and family currently employed by MFT and acknowledge this no doubt helps with the likes of staff retention, skill levels and productivity, but I do wonder how this translates into bottom line for company. At the end of the day, cargo does not often need special treatment and the market will seek out the cheapest levels without the bells and whistles when it comes to moving something from A to B.

It certainly is a case of a rising tide lifting all boats when it comes to the freight world today, and its looking a lot more positive than it did 6 months ago.

[Pricey]

Finding a competitive advantage from a product perspective might be quite hard because at the end of the day MFT move goods from A to B. But MFT has exceptional management and have proven to be a very efficient operator in this industry. You can see from their Annual Report and how they describe their expansion plans how well-thought out the business is:

- Americas: aim to concentrate on main cities; focus on urban development (before the regions)
- Europe: looking to continue to expand in the Netherlands, then into new countries like Spain, Italy and Germany; seems to be their main growth target – needs to be
more profitable to justify more sites and expansion
- NZ/AUS: intensification of urban areas to improve efficiencies
- Asia: no dedicated domestic operations – focus is on air and sea freight operations with a small amount of outsourced warehousing.

It's easy to see how the story could unravel: expand too quick, open up inefficient and costly warehouses, failing to deliver on time or not having enough reach.

[alokdhir]

Just a simple question to all MFT experts here ...

If one has to invest now and only in one company ....FPH @ 34 or MFT @ 66 ??

And some reasons also ...please !