Revenue declined 11.7% to $84.4 million for Shriro in the six months to December, largely due to the exit of the Blanco brand, which represented 10% of the downturn, coupled with subdued demand for seasonal goods. EBITDA for the half was $12.4 million, down 14.5% compared to the previous corresponding period.
According to Shriro CEO, Tim Hargreaves, the exit of Blanco provides greater opportunity to focus and invest in company-owned brands.
“Blanco was a lower margin brand with its core strength in sinks. Shriro had a separate team for sinks which have moved to Blanco Australia. The appliance team is now focused on the Omega and Robinhood brands,” he told Appliance Retailer.
“A cooler and wetter than anticipated summer impacted the sales of our seasonal product range. Shriro strategically ordered stock early to mitigate any risk of supply chain disruption. The combination of these two factors means we are carrying some additional stock, but we anticipate as the 2023/24 summer kicks off that our stocks will normalise.”
Export revenue saw growth of 82% with most sales occurring in the second half of the year during summer in Europe and the US. The export division is expected to grow in FY23 with a new pizza oven being added to the product range, although BBQ sales are expected to be impacted by cooler than usual weather.
The trend of cooking pizza at home is well and truly proving to be a game-changer in home cooking, according to Hargreaves.
“The social interaction of cooking together with family and friends in something that we have always focused on in our BBQ range, and this now extends to our new pizza oven range,” he said.
“Our iconic contemporary style and renowned Everdure innovation continues to extend with our new pizza range, the Everdure Kiln. A rotating pizza stone means you can watch the pizza cook without having to turn it during the cooking process. We have also integrated a burner to heat the base of the pizza stone to assist in producing a crisp base. The Everdure Kiln will be released in the Australian market in July and internationally soon after.
“Beyond the Everdure Kiln, Shriro has a significant product pipeline with more than 30 projects across all categories with most expected to arrive in 2023.”
Shriro has also hired a new merger and acquisition manager, Shawna Chew to seek out opportunities for acquisitions or additional third-party brands. “We are well-positioned both financially and operationally to grow organically and inorganically in the 12 months ahead.”
He added: “We remain upbeat with low unemployment and strong household savings. We believe the consumer will be focused on value and trusted brands, and Shriro is well placed in this respect. Our company remains debt free and in a sound financial position, which will assist us in continuing to bring new innovative product to the market with our company owned brands, add new distribution brands and the opportunity to grow through acquisitions.”