After a period of aggressive expansion into the appliance industry over the past 24 months, McPherson’s Limited, the company which owns a controlling share of Home Appliances, today announced an underlying profit after tax of $14.7 million for FY2014.
Across the group —which has a diverse portfolio of businesses in health and beauty, housewares and household consumables — full year sales revenue increased by 18.1 per cent compared to the year before, to $353.4 million, with the increase attributed mainly to new acquisitions.
Underlying EBITDA increased 8.2 per cent to $30.2 million. The positive impact of the new acquisitions was evident in the second half results, the company said, with an underlying EBIT up 21.3 per cent to $9.2 million.
The Home Appliances division of the business was established when McPherson’s purchased Home Appliances, supplier of the Fagor, Euromaid and IAG Appliances brands, in March 2013 and in FY14 it accounted for 17 per cent of McPherson’s revenue.
The company said that the Home Appliances division was strengthened significantly during the year with the acquisition of Think Appliances, which includes Baumatic, D’Amani and Venini brands and in November 2013 and the Lemair refrigeration business in April 2014.
The company predicts Home Appliances will grow significantly over the next year due to organic growth, new product launches, and the full year impact of recent acquisitions.
Paul Maguire, managing director said he was encouraged by McPherson’s improved performance in the second half, “which reflects the company’s substantial transformation since the demerger of our existing printing business in early 2012.”
“In just over two years, we have developed and launched many exciting new product ranges, and successfully integrated eight earnings-accretive acquisitions, secured several profitable new agency brands and divested our underperforming Crown glassware business. All these initiatives have further diversified the business, increasing our participation in channels that offer more attractive margins.”
Speaking about the outlook for FY15, Maguire said that business conditions were expected to be consistent with the 2014 financial year.
“Continued strong performances will be delivered by the Health and Beauty and Home Appliances divisions, boosted by full-year effect of recent acquisitions, new agencies and price increases already implemented.
“We have a strong pipeline of new products, and the company’s transformation will continue with a number of operation initiatives to improve productivity and profitability, including the outsourcing of our New Zealand logistics function. We also expect to continue to diversify our channels through synergistic acquisitions and new agency partnerships,” Maguire said.