Thursday, December 7, 2023

Skellerup boots up record profit

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Net profit breaks $50m barrier as on- and off-farm sales lead way.
Increased gumboot sales through hardware stores and urban markets in New Zealand have contributed to the higher profit.
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Skellerup put its best foot forward with a record audited net profit of $50.9 million for the 2023 financial year ended June 30, a 7% increase on the previous record result.

The agricultural division delivered earnings before interest and tax (EBIT) of $34m and the company’s rubber footwear for farming, fire, electric power and forestry led the way.

Increased gumboot sales through hardware stores and urban markets in New Zealand and for power companies in the United States returned the higher profit.

Chief executive David Mair said sales volumes of dairy consumables were down as customers reduced inventories due to lower demand and an easing of freight congestion prevalent during the covid-19 pandemic.

“Sales price adjustments in the second half of the year lagged the impact of raw material cost increases incurred in the first half.

“However, productivity gains helped offset the impact of lower production volumes, higher raw material prices and freight costs.”

Total revenue for the group was up 5% to $333.5m and total EBIT up 7% to $71.7m.

The industrial division delivered a 10% gain on EBIT to $42.9m and Mair said increased sales into wastewater, high-performance foam and roofing applications were the key drivers.

A final dividend of 14c a share, imputed to 50%, will bring the full-year dividend to 22c, up 7%.

The share price is sitting around $4.30, having fallen 26% during the past 12 months.

Over the past seven years net profit has grown at a compound annual rate of 14% and earnings per share have gone from 11.5c to 26c.

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