How a blender named Oster made Sunbeam’s profits surge

Sunbeam’s fortunes have turned around significantly in the second half of the financial year with underlying earnings before interest and tax surging 383% to $7.3 million.

Sunbeams parent GUD Holding’s saw the benefit with an 88% surge in net profit.

GUD’s net profit jumped to $33.2 million in the year to June 30, according to the results which were released yesterday. GUD managing director Jonathan Ling pointed to improvements in freight and logistics, and Sunbeams 2014 joint venture with US Jarden Corporation.

According to Ling, Sunbeam was now at one of its strongest points after a series of new product launches including the Oster which featured prominently at the recent Harvey Norman Expo.

GUD’s joint venture with Jarden has enabled GUD to tap into Jarden’s brand and product portfolio, including the Oster Blender.

Oster

 

 

Ling said the introduction of the Oster products helped lift Sunbeam’s earnings, despite sales falling2% across the 2015 financial year.

He said the sales drop was mostly in the first half, which recorded a 7% decline. In the second half, which included the introduction of the Oster Blender, sales increased 3%.

“The Oster launch is a direct outcome of the arrangements entered into with Jarden in November 2014, and is indicative of the benefits that will accrue through the joint ventures,” Ling said.

The improved savings in freight-cost came from a new way of looking at distribution. Ling said that previously it had been costing the company heavily to deliver sometimes just one product line such as a toaster or kettle on a pallet.

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