GUD Holdings Limited has today released its financial results for the year ending 30 June 2009. The company demonstrated an underlying net profit of $37.4 million over the period.
According to the report issued to the ASX, GUD Holdings witnessed pleasing results across its range of consumer brands including Sunbeam, Oates, Davey, Ryco and Wesfil. The Underlying Net Profit of $37.4 million for the group was down only 1 per cent, despite tough economic conditions.
Net profit after tax dropped 7 per cent from last year to $34.8 million.
Demand for products remained consistent over the period with sales from continuing operations steady at $468.3 million versus $469 million last year.
“In the latest year we responded to changed conditions. We reduced overhead costs, improved terms with offshore suppliers, edged up prices, reduced inventory and tightened working capital,” said Ian Campbell, GUD managing director.
“We are very pleased to have recorded a sound result. Consumers continue to support our range of leading brands.”
Campbell also discussed how the company is constantly trying to improve returns for its shareholders.
“We’ve been successful in partially offsetting the negative impact of weaker consumer sentiment and the extreme swings in the Australian dollar but more can be done. We are exploring all options to improve shareholder returns.”
In terms of just the consumer products portfolio, the Sunbeam and Oates brands had a 3 per cent sales growth and $29.9 million EBIT. Even though the result is down 9 per cent down from the previous year Campbell commented that it was a satisfactory result in this current economic climate.
“The Oates and Sunbeam brands are market leaders in their respective sectors and the strength of the brands has been instrumental in underpinning the solid result in Consumer Products,” said Campbell.
Campbell finished by given an outlook for the future of the company.
“In the coming year markets will remain highly competitive but demand for our products is likely to remain sound and we are encouraged by the recent uptick in consumer sentiment.”
“Although we remain cautious on the macro environment and consider the rising trend in unemployment a threat, all our businesses are well positioned to benefit from any upturn in activity.
Overall Campbell expected an improved financial performance in the FY10 results.