Mullen Group, a Canadian logistics provider, announced a nearly 15% decrease in second-quarter profit, surpassing analysts’ expectations. The decline in profit was attributed to weaker demand for freight and logistics services, resulting in a reduction in revenue.
For the period ending June 30, Mullen Group reported net income of CAD 36.5 million ($27.7 million), equivalent to CAD 0.39 per share, compared to CAD 42.7 million or CAD 0.43 per share in the previous year.
After adjusting for certain factors, earnings per share declined from CAD 0.47 to CAD 0.38. Analysts had anticipated a more significant decrease, projecting earnings to drop to CAD 0.31 per share.
Revenue also experienced a decline of 5.2%, falling from CAD 521.5 million to CAD 494.3 million. Analysts had predicted revenue to decrease slightly more, estimating it to be around CAD 498.4 million.
Among Mullen Group’s segments, only the specialized and industrial services unit witnessed revenue growth, increasing from CAD 100.5 million to CAD 107.3 million compared to the previous year.
Conversely, the largest segment, less-than-truckload, experienced an 8.2% decline in revenue, dropping to CAD 193.4 million.
Mullen Group attributes the decrease in revenue to softer demand for freight and logistics services, as well as a return to a more normalized pricing environment this year compared to the abnormal bottlenecks and supply chain disruptions witnessed in 2022.