Shriro on growth path after strong result

CEO says the company is ready for more acquisitions.

Shriro has reported revenue of $186.3 million for the 12 months to 31 December 2015 which was in line with its prospectus, despite the decline in the Australian dollar.

Revenue from the consumer products division grew by 8.6 per cent to $100.1 million, driven by strong sales of Casio G-shock watches and Altise heater sales.

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The Kitchen Appliances division contributed $86.2 million, which was a flat year-on-year result and 7.1 per cent below the forecast in the company prospectus. According to the company’s results, while the Blanco sink business performed well, the division was adversely impacted by a change in Blanco kitchen appliances distribution, which is expected to deliver improved results in the 2016 Calendar Year.

“We are absolutely delighted with these results. We have been able to increase all of the right numbers by some big percentages, not only against last year but also against what we forecast when selling the company mid way through 2015,” CEO Mike Westrup (pictured)  told Appliance Retailer.

Westrup said one of the highlights for the business has been the performance of the Omega brand with sales up 12 per cent on the year prior.

“We have spent a couple of years revamping the Omega product offer and now we have nailed where it should sit in the marketplace and it is clear that consumers are responding. Omega is also doing very well in New Zealand alongside growth from Blanco and Robinhood.”

Westrup believes the Neil Perry by Omega cooking range, which was launch in the final quarter of 2015, is performing well through under an exclusive ‘pro-forma agency’ arrangement with Harvey Norman and is expected to perform well throughout 2016.

“We are very happy with the sales uptake of the Neil Perry by Omega range so far – it is consistent with our expectations. We will build the brand over time, and we feel we have hit the right spot with product and pricing and consequently we are backing ourselves and the brand.”

Westrup says the company has developed a roadmap of new products that are currently in the pipeline.

“We are a product development company as much as we are a sales and marketing company and we look forward to releasing new product categories and sub brands towards the back end of 2016 and the beginning of 2017.

“I think the first of these will be our new barbecue ranges and that’s very exciting for us as it is part of a global strategy for the first time. We are starting to build a demand for our products globally, especially in Europe and in South America.”

“Overall we have a very strong business. One of the highlights is the huge debt reduction we have achieved through operational efficiencies. Our balance sheet is strong and we are primed to expand and have funds to plough into acquisitions.

“We are known for our consumer products, but one of our strengths is that we are quite diversified. Everyone is subject to industry cycles, but the good thing about our business is we are in everything from office products, to jewellery and watches, appliances, musical instruments and the education market.

“In terms of acquisitions, housewares are attractive to us. We tend to buy broken-down companies and brands and realise cost-savings and reconstruct them. We get approached monthly, but we apply strict rules to any potential deal.”

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