Upon release of first half results.
Shriro has reported net profit after tax (NPAT) of $3.4 million for the half year ended 30 June, 2018 –a 3% increase over the previous corresponding period. However, lower revenue from the kitchen appliances division contributed to a 12.9% drop in earnings before interest and tax (EBITDA) to $6.1 million.
The decline in sales in the kitchen appliances segment has been attributed to timing of commercial project phasing and the run out of superseded Omega appliances. However, Omega general manager, Craig Handley said the clearance of old Omega product resulted in July being the biggest sales month in the brand’s history, largely driven by built-in cooking and dishwashers.
New homes growth west of Sydney and east of Melbourne is expected to pick up and assist in the sell through of kitchen appliances in the 12 months, the company said. Shriro also expects an uplift in home renovations with low interest rates.
In the consumer products segment, earnings were up 20.5% with sales of Everdure by Heston Blumenthal barbecues increasing by 58% in the half year. Growth was supported by strong sales of new G-Shock timepieces, although portable cooling sales were down on the previous corresponding period.
Shriro plans to expand its barbecue range with a new outdoor oven, the 4K, and barbecue accessories due to be released in the Australian market in September 2018. (Read more in our upcoming Barbecue and Alfresco Feature).