Portable cooling, BBQs and kitchen appliances.
A sales channel re-alignment, strong cooling season and the commencement of export sales of the Everdure by Heston Blumenthal barbecues contributed to a revenue increase of 9% to $86.3 million for Shriro for 1H17, while net profit after tax (NPAT) was up 6.5%.
The Consumer Products segment achieved sales revenue growth of 7.5% to $44.5 million compared with 1H16, during a period of more subdued timepiece sales. Strong sales performance from portable cooling, calculators and barbecues contributed to the sales growth, although the product mix change led to a decline in this segment’s EBITDA.
Heston Blumenthal and Shriro CEO, Mike Westrup
The Kitchen Appliances segment performed well and generated sales revenue of $41.8 million, an increase of 10.6% on 1H16. Blanco sinks and taps continued to perform strongly and the six months began to see the benefits from a change in the sales channel for Blanco kitchen appliances. The commercial division also increased revenue and gross profit compared to the previous corresponding year.
The Omega appliances product range performed in line with the prior year, which consolidated the growth it achieved in 2016. Sales of the Neil Perry by Omega range increased over the prior year, although not to the extent expected. An improved store presence, initiated in the first half, is expected to contribute to further growth for this brand.
EBITDA from this segment increased by 82% to $3.1 million compared to 1H16. The recouped sales from the Blanco appliance sales channel switch, increased commercial sales and the strong performance of sinks and taps were the main contributors.
Outlook
Seasonal influences result in the company’s financial performance being heavily biased toward the second half of the year and so visibility on the likely results for the full CY17 12 months is unclear at this stage.
Consumer confidence currently appears to be somewhat fragile and in this environment, growth in customer demand is likely to remain modest through the second half. Whilst Shriro will be expanding into new markets and introducing new products and marketing programs in the current year, including participation in timepiece marketing initiatives planned for implementation globally by Casio Japan, the returns from these initiatives are expected to provide profit growth gradually over the next two to three years.
Company directors believe that the benefits of Shriro’s product diversity and its focus on efficiency will generate a net profit after tax (NPAT) for CY17 that is above CY16.