Rubber goods manufacturer Skellerup has reported back-to-back record profits, as strong demand from its industrial and agricultural customers continues.
The company makes hoses, nozzles and gumboots for the rural sector, and parts for boats, cars and kitchen appliances. It is perhaps best known for its red band gumboots.
The company makes goods used in several sectors but is best known for its red band gumboots. Photo: RNZ / Robin Martin
Key numbers for the year ended June compared to a year ago:
- Net profit $47.8m vs $40.2m
- Revenue $316.8m vs $279.5m
- Net debt $25.2m vs $8.7m
- Cash flow $43.3 vs $58.8m
- Final dividend 13 cps vs 10.7cps
Skellerup chief executive David Mair said the improved performance was the result of the company's "unwavering focus" on working closely with key customers to develop the products they needed.
"Our products are critical to the supply of safe potable [drinkable] water; the production of milk and milk products; the performance of appliances in homes and workplaces; health and hygiene in hospitals, shops and homes; the safety and comfort of sporting and leisure equipment; and the integrity of roofing systems on homes and workplaces."
Earnings from the company's industrial products business rose by 20 percent to a record $39.1 million, with 85 percent of sales coming from international markets.
"In FY22 we increased sales of gaskets, seals and vacuum systems into potable water and wastewater applications [most notably in the US] and increased sales of high-performance marine foam products [US, NZ, Australia, Europe]," Mair said.
The company also had a 10-month contribution from Talbot Advance Technologies, which it acquired last August.
Agri-division earnings also hit a fresh record, jumping 10 percent to $33.6m. The increase came on the back of higher sales of dairy rubberware and footwear into the US and local markets.
"Further productivity gains at our larger NZ and China manufacturing facilities helped offset the significant impact of increased raw material prices and freight cost."
Cashflow was down $15.5m on a year ago, as the company carried more inventory to mitigate the effects of supply chain disruptions.
Net debt increased by $25.2m following the Talbot acquisition but it represented about 7 percent of total assets.
The final dividend would increase from 10.5 cents per share (cps) to 13 cps, bringing the total dividend to 20.5 cps - which is a 21 percent increase on a year ago.
Skellerup also announced that its chair Liz Coutts would retire from her position at the company's annual meeting.
John Strowger has been appointed as her successor.