In This Article:
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EBIT: $35 million, a record result for the group.
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Net Profit After Tax (NPAT): $24.2 million, a record result and a 12% increase over the first half of FY '24.
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Operating Cash Flow: $32.2 million, strong but below the record prior comparative period.
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Interim Dividend: Increased by 6% to $0.09 per share, 50% imputed.
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Net Debt: $20.4 million, 6% of total assets.
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Revenue: Largely in line with H1 '23, with improved gross margins.
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Guidance for Full Year NPAT: $52 million to $56 million.
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Industrial Division Revenue: Up 5% on a constant currency basis.
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Agri Division Performance: Strong rebound in demand for dairy consumables.
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Freight Costs: Increases impacted both Agri and Industrial divisions.
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FX Result: Favorable, aided by hedge positions contributing $0.5 million pretax.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Skellerup Holdings Ltd (NZSE:SKL) reported record first half EBIT of $35 million and NPAT of $24.2 million, showcasing strong financial performance.
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The Agri division experienced a strong rebound in demand for dairy consumables, significantly boosting results compared to the prior period.
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Operating cash flow remained robust at $32.2 million, supporting a 6% increase in the interim dividend to $0.09 per share.
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The company has successfully launched new high-performance products, such as calf feeding systems and milk liners, which have shown promising early demand.
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Skellerup Holdings Ltd (NZSE:SKL) maintains a low net debt level, only 6% of total assets, providing financial flexibility for future growth initiatives.
Negative Points
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The Industrial division's earnings were slightly below the record prior period, impacted by lower sales in the US due to the election cycle.
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Increased freight costs and strategic inventory buildup have offset some operational gains, affecting overall profitability.
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The Australian residential construction market remains weak, negatively impacting the roofing and construction sector.
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Demand for rubber footwear products in New Zealand was weaker due to tougher economic conditions and a benign climate.
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Exploration and Mining revenues declined, reflecting the mature profile of key products in this market.
Q & A Highlights
Q: Can you clarify the constant currency revenue growth by division? A: Yes, it was 4% for the Industrial division and 3% for the Agri division. - Graham Leaming, CEO
Q: With EBIT down 2% in Industrial, can you explain the cost growth in that division? A: We saw increases in freight costs, which we offset with pricing increases. We also invested in additional resources for growth, including personnel and facility improvements. These costs are not expected to reduce. - Graham Leaming, CEO