So weve got eight and a half thousand people and 282 locations. In March 2011, Mainfreight entered the European market with the acquisition of Netherlands-based company Wim Bosman Group for 120 million; or $227 million. In the decade Braid has spent at its helm, the company has become a global logistics player with operations on every populated continent apart from Africa. Another attribute is straight talking. Whats interesting when you go into a pandemic or an event like this is what the balance sheet looks like. As you get bigger, staff engagement and culture becomes more difficult. Mainfreight will pay a discretionary bonus of $43.9 million, up 61% from last year's bonus of $27.3m, after a record result to March which saw net profit up by $40.1m to $188.1m. The firms European business where it has a footprint of more than 330,000 sqm of warehousing saw a 23.4% improvement in profit before tax to 22.35m, despite extensive lockdowns across the continent, many of which were ongoing. I think weve done 17 to date since Covid and weve got another six or eight for the next two weeks just for New Zealand and theyve adapted. Mainfreight will release its financial results for the full 2022 financial year on 26 May 2022. The branch managers are the kings and queens, by the way, because thats where the moneys made the national team is just there to support the branch managers. Watson said she did not believe bonuses were a way. Leading into this, we had a number of market analysts suggesting our balance sheet was lazy and you know, undercooked. I'm pleased I didn't do anything else.". See the full transcript below. +64 27 403 0148+64 9 905 4804Jill.Steffert@iod.org.nz, The Auckland Branch acknowledges the generous support of. He has led the company in strengthening its global logistics business and ensuring an increased diversification of revenue streams across many countries, trade lanes and activities provides Aside from travel (usually), customers, and communicating with those in other countries I spend my time in front of our people and our leadership team, no matter where they are located. With Don Braid at the wheel, Mainfreight is in safe and skilful hands. Its the individuals responsibility to arrive on time and stay until the jobs finished. Get in touch with us directly. I learned that early in the piece and I think its stood me in good stead. Rob Fyfe Theres no bullshit in the numbers, they are what the business has earned. And sometimes, particularly so in New Zealand, they see the market ultimately being as quite small, when in fact their product or service is good enough to take to the world. Chief executive, Kiwibank So everything that we do is about being here for a long time. So the weekly P&L puts them on the spot. [4] This operation was expanded with depots in Melbourne and Brisbane. You may withdraw your consent at any time. Private parking spaces are also banned at Mainfreight - the group managing director has to find himself a spot in the carpark each morning after he drives through the front gate. But the excitement is justified. Mainfreight was founded on 6 March 1978 by Bruce Plested who started the company with just $7,200 and a 1969 Bedford truck. They established agencies in the early days with Australian, Pacific Island and United States freight forwarders and the established agents in most major trading partner countries of New Zealand. "He implements things very well and you don't have to remind him about anything you're trying to achieve. With Covid, the New Zealand team would meet every day for the first four weeks during lockdown. The firm's Australian domestic freight and logistics division, Mainfreight Distribution, began operations in 1989, with an operation in Sydney. Even Europe's ongoing economic turmoil fails to dampen Braid's optimism, despite the Kiwi logistics operator having spent more than $200 million buying a Netherlands-based freight firm earlier this year, giving it a European footprint for the first time in its more than three-decade history. As we noted earlier, Mainfreight pays its CEO in line with similar-sized companies belonging to the same industry. We continue to be optimistic and we are bloody proud of our people who have delivered this record result.. And I think ultimately, yes, Im responsible for the business, but I enjoy what I do and having great people and a good lifestyle where I can stay fit and have some fun means the stress levels arent that high. Also, such solid returns might lead to shareholders warming to the idea of a bump in pay. It now has 22 company depots in Australia and relies on agents and third parties in the Northern Territory, Tasmania and some of regional Australia. Involved in the founding of Kiwibank before taking the top job, Knowles embraces challenge and thrives on delivering top results. With well-established locations that include China, Hong Kong, Taiwan, Malaysia, Thailand, Vietnam, Singapore, Japan and Korea, the Mainfreight global network continues to expand year over year. Getting decisions made as close to the customer as possible is probably our secret and giving that responsibility to those in the branches. And thats that. Don from Mainfreight talks to Fisher Funds. Don: With this event in front of us right now, I think cash is king, and the collection of cash. Its great fun. Don Braid's Phone Number and Email Last Update. Mainfreight will pay a discretionary bonus of $43.9 million, up 61% from last year's bonus of $27.3m, after a record result to March which saw net profit up by $40.1m to $188.1m. We're trying to break all that down.". Use of the word "staff" is banned within the company - one of a range of idiosyncrasies particular to the logistics firm. "[8], In June 2013, Mainfreight launched a lawsuit seeking 11 million or $18 million against Wim Bosman Group's former owners. Filed Under: Blog, Business coaching, Motivation coming at ya, What a great interview and there are many excellent points which the Mainfreight CEO covered like Empathy which is essential when supporting all those involved in Mainfreights success and another dealt with the importance of making sure all invoices are paid on time. So a lot is about the long game. In 2006 the New Zealand Mainfreight International and Owens International businesses were also merged to make Mainfreight Owens International Ltd (now Mainfreight International). Us taking away that clock was about responsibility and about taking away that control from head office. Kiwis know the firm largely through its blue trucks that ply our highways, but the company also utilises sea, train and air freight to transport goods around the world. Yes, wed committed an enormous amount of capital expenditure coming into this new financial year, but we were in good shape in that the balance sheet looks pretty good. You can be profitable and not collect the cash and go broke. Moreover, Don Braid also holds NZ$171m worth of Mainfreight stock directly under their own name, which reveals to us that they have a significant personal stake in the company. enter your email and well send you details. I just have a belief and determination that weve got a pretty good business here. Experts say community investment is the future. Mainfreight International was Mainfreight's first international sea and airfreight business and was started in 1984 by Bruce Plested's brother Gerald. Rapper, chef and author Action Bronson takes us on a journey from his early days at culinary school, to releasing critically acclaimed albums, to writing books, starring in TV shows and building an iconic brand around his favorite interests. And I suppose the key thing that we had in our mind was how are we going to run this business to survive and not make anybody redundant. In this episode, Bronson explains how the lessons he learned in the kitchen translated to the booth, the reason money can never be the motivation for creating art, and why he believes that imperfections are the best part of any masterpiece. He owns a 3 per cent stake in the firm, worth about $29 million. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Copyright 2023 | Business Changing Ltd. | Website by Casual Fridays. Terms of use We will probably go back to normal but be ready to adapt, be flexible and look after your people theyll bring the answers to the table for you on what your business will look like in the future. Don: I get out of the way. Brent is a senior reporter based in Queenstown. Mainfreight is the fourth largest company in NZ, doing over $3 billion in sales and over $300 million in EBITDA, with physical assets of $1.5 billion and debt of less than $200 million. I guess whats annoying is that we have got to wait for an election year to get this kind of stuff. Possibly more important for its team of 8,000, the firm more than doubled its Christmas bonus for 2020, from $5.35m to $11m. Look after your people and theyll look after the business. Chosen from New Zealand's top companies, this year's Deloitte . Our subscriptions start at $24 / month for individuals. In 2007, Mainfreight acquired Target Logistics, a United States based forwarder with 34 offices, and an extensive agent network. Bruce Plested, the firm's executive chairman who founded the company in 1978 with $7200 and a 1969 Bedford truck, recalls the day in 1994 when Braid - then a Freightways Group employee - had the job of pitching its Daily Freightways business to Mainfreight, which it acquired that year. Its important to be as flexible as we can to bring an offering that the customer requires during a really tough time. Don Braid is a Group Managing Director at Mainfreight NZ based in Mangere, . It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Not living as a question mark but instead getting on with it and making those decisions. He is highly respected and success-driven executive who has made Kiwibank fly when many thought it would struggle to get off the ground. Required fields are marked *. When it comes to capable, motivational and effective leadership Sam Knowles delivers with interest. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Its whether the toilets clean, the cafeteria clean, have people got a smile on their face? By the way, its not just about us seeing those numbers. Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 43 years' experience in freight forwarding and logistics both New Zealand and internationally. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up . Thanks for your comments about Don Braid and Mainfreight. 11/5/2022 3:33 PM. Rob Fyfe is the polished and personable face of the new lean and globally competitive Air New Zealand. Then we just sat back and allowed the de-centralized process to take over and allowed people to take responsibility to get their businesses sorted and in line. But, he said, the groups response at the outset of the pandemic had been unequivocal. [4] In 1998, Mainfreight acquired Australian freight forwarder ISS Express lines, subsequently establishing an Australian international freight business. He joined Daily Freightways in 1978, gaining a thorough grounding in all aspects of the business and eventually heading up that company. We dont call them staff for us, they are our people or our team. CEO compensation can have a massive impact on performance, but it's just one element. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braid's more modest 2.79% stake is still worth about $70m - supplemented by annual remuneration of $2.2m in 2017. See ourstandard terms and conditionsfor more information. Thats the key. We ask our people to recruit very good people with passion and energy; people good enough to become branch managers. Some people dont want any more responsibility they find their own ceiling and thats fine. Biography Don Braid, Group Managing Director of Mainfreight Limited, was educated at Timaru Boys' High School and has over 30 years' experience in freight forwarding and logistics both New Zealand and internationally.. The company posted record earnings and revenue for its last full year and has continued to break records this financial year. Both are real legends and seem to really walk the talk. He has also lent his considerable support to not-for-profit organisations such as the Starship Foundation. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size. Between 1994 and 1997 Mainfreight started acquiring former competitors, such as, Daily Freightways and Chem Couriers in 1994, a 75% shareholding in Lep New Zealand in 1996, and Combined Haulage and Senco Haulage in 1997. BusinessDesk has a paywall for most of its content. Once it became a global pandemic we needed to react and adapt as quickly as we could. His leadership is underpinned by a strong belief in Mainfreights global competency and capabilities to provide high-quality supply chain solutions for our customers. Zac: Don, having a decentralized business, whats been your approach to leadership? So we are developing our people to be the best they possibly can be. We use functional and analytical cookies on our website to offer an optimal user experience. "You can imagine what they need to eat, drink and use," says Braid in the boardroom of Mainfreight's building in Otahuhu. So I think cashflow is king and Id be focused on that. Zac: What is the Mainfreight way when it comes to culture? New Zealand Shareholders' Association corporate liaison Des Hunt says Braid is one of the most effective listed company bosses in this country. Managing director Don Braid said the result was pleasing, particularly in light of supply chain congestion and ongoing lockdown disruptions in most of Mainfreight's markets. Under his guidance, the freight and logistics company has grown and expanded to now run operations in New Zealand, Australia, Asia and the United States. Early in the piece at Mainfreight, leaders are given responsibility, so the ability to take responsibility and to make decisions is pretty important. WINNER Target operate domestic and international time-sensitive freight-forwarding and logistics services through its wholly owned subsidiary, Target Logistic Services. Were thinking about being around for a hundred years. We were lucky enough to have a really incredible chat with Mainfreight CEO Don Braid about what he has learnt as the CEO of Mainfreight. Although Plested remains the largest shareholder with a 16% stake worth $395m, Braids more modest 2.79% stake is still worth about $70m supplemented by annual remuneration of $2.2m in 2017. We offer lots of training as well, internally and externally. That means a lot of travel, but the reality is I thought my skills were best used in front of a customer so thats what I focused on. Mainfreight boss Don Braid sees fresh opportunities in China's Belt and Road initiative, writes Bill Bennett. COVID-19 has had a significant impact on freight and supply chains worldwide. He's got plenty of charm if he wants to have it and his leadership skills just stand out - people want to stand next to him.".