Friday, April 12, 2024

Skellerup chief to leave on a high

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David Mair has quadrupled earnings in his 14 years at the helm.
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Skellerup continued to trade steadily and profitably in the first half of FY 2024 as its long-serving chief executive David Mair announced his retirement in six weeks’ time.

On March 31 he will be replaced by in-house appointee Graham Leaming, who has been chief financial officer since 2012.

Mair has led the company for 14 years, during which earnings have increased fourfold, chair John Strowger said.

“Shareholders have been well rewarded by David’s expertise, leadership and relentless drive for growth and improvement,” he said.

Mair will continue to serve as a director of Skellerup and along with Paul Shearer will lead a special project initiative with management to progress the in-market capabilities.

He was named the Deloitte Top 200 Chief Executive Officer of the Year for 2021.

Skellerup announced net profit after tax of $21.6 million in the interim results, down 6% on the previous corresponding period.

Award-winning Skellerup chief executive officer David Mair is retiring after 14 years at the helm.

Revenue was down 5% to $157.5m and the agricultural division earnings before interest and tax were down 19% to $11.9m.

“Dairy sales were softer than we anticipated as international customers reduced purchases to lower inventory,” Mair said. 

“With many of these customers having calendar fiscal years, this activity continued right through the first half. 

“Pleasingly, we have experienced a larger than normal uplift following Christmas, and forward orders continue to be strong.”

Over 80% of Skellerup’s production is exported.

“Our business remains robust, and we expect some of the first-half headwinds of customers reducing inventory used in dairy and leisure applications will abate.

“The global environment including the impact this is having on ocean transit times continues to make forecasting future results difficult.”

Mair said the FY24 net profit is expected to be similar to FY23’s record result of $50.9m, from which 22c a share dividend was paid. 

The share price is around $4.80 and has lost 10% over the past year.

The interim divided is 8.5c, up half a cent on the 2023 interim.

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