Shriro Holdings has reported a jump in underlying profit after tax of $4.7 million for first half 2020, on a turnover of $78.6 million.
First half revenue declined by just 1.6%, despite being significantly impacted in late March and April, with widespread retail store closures and the complete shutdown of the company’s sales operation in New Zealand.
Shriro general manager – appliance division, Brad Street reflected on the early shocks to sales, noting that senior management worked quickly to put in place a contingency plan for cost saving measures, including a temporary reduction in staff working hours.
“The Australian government played a critical role in providing certainty with stimulus packages, the result of which has seen a significant bounce back for sales favouring a variety of brands across the business,” he said.
“From May onwards, Australians increasingly moved spending towards home renovation projects replacing travel and restaurant experiences, with Shriro brands well positioned to take advantage of the emerging trend.”
Among the positive highlights for the half year was the strong sales performance of the rebranded Omega appliance range since launch in April, in partnership with The Good Guys, according to Street.
“Consumer reaction has been positive with product sell-outs across the range and the launch of the Omega rebrand. The Omega range is an ongoing multi-year product update project, with additional ranges and products to come,” he said.
“Despite the increase in revenue, appliance margins have been impacted by the fall in the AUD. However, with strong Omega brand equity and positive reception of the new range, price increases are being implemented accordingly.”
BLANCO sinks, taps and appliances also saw a sales uplift with renewed focus on renovation projects. Shriro continues to invest in digital brand awareness strategies and in-store displays across various brands.
The company anticipates strong sales for the award winning Everdure by Heston Blumenthal BBQ range as the weather warms up towards Father’s Day.