Shriro has decided to exit the kitchen appliances division in Australia due to the competitiveness of the segment, impacting Omega and Robinhood brands.
“The revenue from kitchen appliances was $37 million for the 12 months to 28 February 2023. Shriro’s margin has been increasingly squeezed due to market pressure resulting in it being a loss-making part of Shriro’s business. The loss of a major retailer for the Omega brand was the catalyst for deciding to exit the kitchen appliances category in Australia,” a statement to the ASX said.
“The company intends to restructure the business, including closing its Dandenong warehouse, which will result in some one-off costs in FY23. This will ensure the business continues to operate efficiently and offset the impact of the loss of revenue.
“The exit will not negatively impact the group’s profit from 1 July 2023 onwards; however there will be a release of cash from the debtors and inventory of approximately $12 million, collected in the first half of 2024.”
The board thanked the appliance staff for their many years of service which have made the Omega and Robinhood brands household names.
The New Zealand appliances division continues to trade well and dominates in the laundry tubs market so will continue with business as usual.
Shriro will continue to focus on the global expansion of its seasonal business including BBQ products, and its distribution business with Casio and Pioneer.