Shriro has reported its third best profit result in over 25 years for FY22, despite being down 33.5% on the previous financial year.
“FY21 was a record year with significant Covid related tailwinds, government subsidies, revenues boosted by increased demand for household related goods and lower operating costs with staff working from home. We are delighted with the performance of the business,” Shriro CEO, Tim Hargreaves told Appliance Retailer.
A 7.3% decline in revenue year-on-year has been attributed to retail store closures, coupled with lower commercial sales due to delays in building projects, however there are signs of a turnaround with revenue shifting into positive territory in the second half, as stores re-opened and the building industry started to return to a sense of normality. The Everdure by Heston Blumenthal barbecue range also continues to perform extremely well.
When asked about increased operating costs as a result of rising supply chain costs, Hargreaves said the business is carrying more stock of key product lines in brands such as Omega and Robinhood to take advantage of global stock shortages and support retailers in the lead up to Christmas.
“Given that our Everdure BBQ sales continue to show strong growth, we have secured more stock earlier to ensure we can meet the expected demand. With a global footprint with distribution in over 30 countries, world-class innovation and contemporary design, Everdure BBQs meet the needs of more discerning consumers who are seeking a product that complements their outdoor furniture and overall alfresco dining space,” he said.
“Container costs are moderating in certain markets; however, I see operating costs continuing to be under pressure with higher wage costs, rent, and local freight.”
In the last financial year reporting period, Blanco Germany made the decision to establish a new Australian subsidiary for direct distribution of its sinks and taps.
Commenting on Blanco’s exit from Shriro, Hargreaves said: “After more than 20 years of growth together, we were obviously disappointed, however that’s the nature of distribution. We have valued and long-term distribution partners such as Casio and Pioneer (New Zealand) that continue to perform well.
“In the cooking space, we are now focused on growing our company owned brands such as Omega, Robinhood and Everdure. We see some real opportunities to grow in the retail and commercial appliance markets with additional resources in the sales, marketing and product teams.”
In its financial results statement, Shriro said it continues to investigate distribution and sales opportunities for additional consumer brands and Hargreaves confirmed there are discussions underway with a number of companies.
“Shriro and Monaco have a world class operation, distribution and aftercare structure with access to almost every consumer goods/retail sector in the Australian and New Zealand market, including education, jewellery, fashion, music, grocery, big box electrical, hardware, and e-commerce.
“Given the relatively small market size and investment required to set up in the local market, international brands are looking for a solution to get access to the market without the risk investing in their own infrastructure. Watch this space as we will be adding more world class brands very soon.”