By Claire Reilly

GUD Holdings has released its half-yearly results for the six months ended 31 December 2012, posting disappointing sales results for Sunbeam and its wider Consumer division as a whole. GUD’s Consumer division includes the Sunbeam small appliance brand as well as Oates cleaning products.

Consumer products brought in total revenues of $99.95 million for the period and earnings before interest and tax (EBIT) of $11.90 million. This represented a significant decline compared to the prior corresponding period when Consumer products brought in $117.60 million in revenue and $19.35 million EBIT—a decline of 15 per cent and 39 respectively.

Across the whole company, net profits after tax fell 21 per cent year-on-year, down to $18.2 million—in part due to restructuring costs for GUD’s Dexion business division. Furthermore, underlying net profits after tax fell 9 per cent to $21.7 million. This was largely attributed to the absence of the $1.8 million Breville dividend from the previous year.

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Similar to GUD’s Holdings last major results release, managing director Ian Campbell portioned some of the blame for declining profits in the company’s Consumer division to the rise of house brands.

“During the half we experienced challenging trading conditions in our consumer businesses. The collapse of Retravision, proliferation of brands and the further growth of trade and house brands have all contributed to the Consumer Product’s disappointing results,” he said.

“Sales declined 15 per cent to $100 million with both Oates and Sunbeam contributing to this result. However, the largest decline was experienced in Sunbeam, which was affected by a number of significant competitive factors.

“These included the demise of Retravision as a major retailer, along with increasing competition from cheaper, lower quality house brands and further market inroads made by European brands, in particular, as they seek volume outside of their depressed home markets.”

The company also outlined a number of initiatives planned to put the Consumer Division on the right track in the future, including cost-cutting measures and the revision of its product development program.