By Patrick Avenell
Sunbeam is planning on releasing eye-catching new products in its bid to stimulate spending and improve profits, according to documents lodged by its parent company, GUD Holdings, to the Australian Securities Exchange today.
GUD’s consumer brands, Sunbeam and Oates, registered $219.2 million in sales during the 2012 Financial Year, down 7 per cent on the preceding year. Underlying earnings before interest and tax is predicted to be $33 million before restricting costs are included. This is down 15 per cent from the $38.8 million from the 2011 Financial Year.
“Competitive conditions, leading to price adjustments, [have] contributed to the sales drop,” is how this document explains the profit dip. “Sunbeam maintained unit volumes across Australia and New Zealand.”
During a section headed ‘Outlook’, the document presents an optimistic vision for the short term.
“Substantial new product launches [are] planned for Sunbeam…to counter market conditions.”
Across all its brands and business, and including the sale of shares in the rival Breville Group, GUD Holdings recording a net profit after tax of $92.8 million (up 134 per cent) off $609.1 million (up 3 per cent) in sales. The substantial difference in profit increase and sales increase is almost entirely attributable to the Breville share sale, which included a net gain of $49.4 million.