By Claire Reilly
SYDNEY, NSW: GUD Holdings Limited, parent company and distributor of Sunbeam appliances, has released its yearly results today, announcing an EBIT figure (earnings before interest and tax) of $38.8 million in consumer products.
This figure encompasses results for both Sunbeam and GUD’s other consumer product offering, Oates cleaning products. The underlying EBIT for the year ending June 30 2011 (taken before acquisition, integration and restructuring costs) was up 15 per cent on the previous year, while revenue was down 6 per cent from $249.7 million to $235.9 million.
According to Ian Campbell, managing director GUD Holdings Limited, the company's consumer product offering “benefited from our previously secured currency position, the increasing strength of the Australian dollar and on-going tight overhead cost control.”
Net profits after tax for the whole company were $39.7 million for the year, down 14 per cent from last year’s “record” figure of $46.4 million.
In a statement released to the Australian Securities Exchange, GUD cited a difficult year in retail as a factor in the financial results.
“Sales declined 6 per cent, reflecting subdued retail trading conditions in both Australia and New Zealand along with increased competition from low-priced, lower quality housebrand products.
“Despite the growing intensity of trade brand competition in the small appliances market, Sunbeam maintained its market leadership position in both Australia and New Zealand. Sunbeam’s involvement with the extremely successful MasterChef program in Australia has underpinned market share growth for the brand in food preparation appliance categories.”
The company is expecting the 2012 financial year to be strong, according to Campbell.
“We are expecting a solid financial performance in the 2012 financial year, underpinned by the strength of GUD’s brand portfolio,” Campbell said.
“Trading conditions are predicted to remain difficult in the Australian retail sector and this will influence both Sunbeam and Oates,” he added. “GUD maintains a strong, clean balance sheet with the capacity to support further growth.”