MaxiTrans plays hardball to lift interim profits


Push to raise market share and reduce price pays off in first half

 

A tough line on market share, pricing and costs has seen MaxiTrans lift first half net profit 11 per cent to $5.6 million

Revenues were up 5.4 per cent from the previous first half to $181 million and the trailing equipment manufacturer expects the good news to continue in the second half of the financial year.

"Pleasingly, MaxiTrans continued to improve its market share during the period notwithstanding total unit sales were consistent with the prior corresponding period," the company says.

"However, this market share growth came at a cost with margins adversely impacted by heavy discounting.

"We are in a strong position to further improve our market position with the opening of our new company-owned NSW trailer dealership in [the first half].

"Early signs are this will be a successful strategy to grow in this important market."

It adds that its "aggressive pursuit of market share has resulted in a solid order book leading into" the second half that is up 8 per cent on the previous first half.

However, trailer unit sales down 21 per cent on that measure, despite market share increase, which was indicative of a soft general freight market".

Against that, refrigerated vans were up 68 per cent after a "very strong" rebound in the half compared the second half of last financial year.

Tipper sales were one per cent down but orders up 16 per cent across all brands half-on-half.

While there was contraction in the Queensland and Wester Australian parts businesses, it was not all bad news

"In the Parts and Service segment, new business initiatives, including the MaxiStock customer inventory management system, which has been favourably received by the market and the introduction of a new suspension product, will provide new revenue sources for the business in [second half] notwithstanding a challenging market environment.

Closing the Bundaberg Azmeb facility in November cost $438,000 but came in the same month as the opening of its New NSW trailer dealership at Smeaton Grange.

 

 

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