Shriro records 9% profit increase

Revenue up 2.6%.

An improved performance from Omega Altise and Blanco appliances and sinks, as well as export sales of Everdure by Heston Blumenthal BBQs, has helped lift net profit after tax (NPAT) for Shriro to $14.5 million – a year-on-year increase of 9.8%. The increase was somewhat offset by lower sales of watches and appliances in the commercial market.

Shriro CEO, Tim Hargreaves commented, “Given the difficult retail conditions for most of the year, which impacted many product sectors, both the kitchen appliances and consumer products divisions have performed particularly well and New Zealand operations continued to make a very valuable contribution.”

Consumer products

Revenue for the consumer products segment grew by 3% to $105 million, attributed to strong performance from BBQs, Omega Altise seasonal products, Pioneer Electronics in New Zealand and Casio keyboards.

Omega Altise cooling benefitted from a late summer heat early in CY17 and an early summer heat later in the year when retailers were understocked from the previous season.

BBQs

The Everdure by Heston Blumethal brand achieved sales orders from the UK, Germany, the Netherlands, Norway, Denmark, Sweden, Finland and Iceland during the year following a successful launch. The range was also launched in New Zealand.

In the US, Shriro together with Williams-Sonoma will launch the brand and products over the next 12 months. Discussions are also advanced with other US retailers and sales during 2018 from them are expected.

Kitchen appliances

Revenue for the kitchen appliances segment increased 2.3% to $83.4 million thanks to a re-alignment of the sales channel for Blanco appliances towards the end of 2016. Omega appliances also had a good year assisted by an energetic market promotion towards the end of the year, based on price that is still continuing.

Blanco retail appliances and Blanco sinks and taps achieved sales growth, reflecting a focus on the home renovation market. The Robinhood product range made sound progress, particularly in New Zealand, and the brand has a strong focus on product development with new products in the laundry sector planned for launch in CY18.

The segment achieved EBITDA growth of 28% for the year derived from close management of the volume/GP mix, sales-channel planning and tight control of operating expenses.

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