Sunbeam posts improved half year results, plans to introduce new brands to Australia

Sunbeam’s parent company GUD Holdings has improved its first half profit by 16 per cent to $17.28 million on an underlying basis, citing the early success of its restructuring programs undertaken in the last 12 months.

“We have previously articulated and quantified plans to improve profitability across GUD’s businesses and we are pleased with the progress, as evidenced in these results,” said GUD managing director Jonathan Ling.

Ling said that GUD is on track to meet its projected yearly earnings of $55 to $60 million for FY15.

Ling said that profit growth had been recorded in all the company’s businesses with the exception of cleaning brand Oates. “It is encouraging that our previously identified underperforming businesses – Dexion and Sunbeam – made an improved contribution in this half,” he said.

In the first half of the financial year which saw 49 per cent of the business sold to US-based Jarden Corporation, Sunbeam’s underlying earnings before interest and tax (EBIT) increased 208 per cent to $2.5 million.

The company said that underlying EBIT improved due to profit initiatives, in particular those relating to freight and logistics costs.

In the six months ended 31 December 2014, Sunbeam’s revenue decreased 7.3 per cent from $61.3 million to $56.8 million.

“Sales declined due to lack of new products, an issue that is being addressed through a combination of Jarden joint venture and a reinvigorated new product program,” GUD Holdings said in a statement.

Ling was upbeat about Sunbeam’s performance and the potential benefits to be gained from the partnership with Jarden, saying that it “provides us with significant scale synergies and considerable growth opportunities, which should start to feature in FY16.”

“Under the direction of Sunbeam’s management team we believe that the joint venture with Jarden will contribute significantly to long term growth, through a combination of revenue enhancements and scale synergy savings.”

In late 2014, GUD sold 49 per cent of Sunbeam to Jarden Corporation and acquired a 49 per cent share in Jarden Consumer Solutions’ Asian sales operations. Sunbeam will be distributing Jarden products in Australian and New Zealand markets this year.