By Keri Algar
SYDNEY, NSW: The report, issued on the Australian Securities Exchange (ASX) this morning, said that Sunbeam maintained its market leadership in Australia and across the Tasman in a difficult trading environment, leading to increased competition from private and trade brands.
“Sunbeam’s brand standing has been further reinforced by its involvement in the Junior MasterChef series, which was broadcast during the half,” said the ASX report.
“Margins are not expected to be as buoyant in the second half as product cost pressures build from offshore suppliers. Additional marketing and sales promotion activities are planned to supports sales growth in the half.”
GUD Holdings managing director, Ian Campbell, confirmed this statement, adding that tight cost control would also benefit the operations.
“Across all business we continue to support high levels of investment in product development and innovation activities to underpin future margins and sales growth,” Campbell said.
“In addition, all businesses remain focussed on tightly controlling their costs.”
GUD’s net profit after tax for the 6 months to 31 December 2010 was down 6 per cent to $23.3 million. This however, has been attributed to the costs involved in acquiring Dexion in September, according to the report.