Skellerup chief executive David Mair says footwear sales were up, notably in the home market, New Zealand.
Skellerup has reported a record net profit after tax (NPAT) of $23.2 million for the six months ended December 31, in which both agri and industrial divisions achieved record earnings.
NPAT was up 19% and the agri division earnings before interest and tax (EBIT) were up 9% to $16.7m.
Group revenue was up 10% to $150m and EBIT was up 18% to $32.4m.
Chief executive David Mair said dairy rubberware sales had increased, especially in the United States market.
Footwear sales were also up, notably in the home market, New Zealand.
But he said margins were down slightly from the impact of rising raw material prices and freight costs.
Operating cash flow in the first half was down 44% due to a planned increase in inventory to mitigate the impacts of covid-19.
“We increased raw materials and finished goods in transit to our distribution centres to ensure continuity of supply to our customers,” Mair said.
“Net debt is up on FY21 year-end because of the acquisition of Talbot and investment in working capital and Skellerup’s balance sheet remains very strong.”
A record first half means an expectation for a record full-year profit, now forecast to be in the range of $44m to $47m, compared with $40m in FY21.
An interim dividend of 7.5c will be paid, imputed to 50%.
Skellerup’s share price has risen 55% in the past 12 months to lie around $6.30 presently.
