Announcement
FLLYR: SKL: Revenue and operating gains drive record Skellerup NPAT
08:30am
SKL
19/08/2021 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Skellerup Holdings Limited
FLLYR: SKL: Revenue and operating gains drive record Skellerup NPAT
Skellerup today announced record audited net profit after tax of $40.2
million for the year ended 30 June 2021, a 38% increase over the previous
record result.
Highlights for the year ending 30 June 2021
? Strategy and business model continuing to deliver substantial growth in
earnings and returns to shareholders.
? Revenue of $279.5 million, up 11% on prior comparative period (pcp).
? Earnings before interest and tax (EBIT) of $56.4 million, up 33% on pcp.
o Industrial Division EBIT of $32.7 million, up 57% on pcp.
o Agri Division EBIT of $30.5 million, up 20% on pcp.
? Net profit after tax (NPAT) of $40.2 million, up 38% on pcp.
? Operating cash flow of $58.8 million, up 22% on pcp.
? Net debt of $8.7 million, down $19.8 million on pcp.
? Final dividend of 10.5 cps (50% imputed) bringing the total FY21 dividend
to 17.0 cps (50% imputed) for the full year, up 31% on pcp.
Skellerup CEO, David Mair said the overall growth in earnings was the outcome
of continuing to focus on working closely with key customers to provide
engineered products used in a range of critical applications people interface
with every day. "Skellerup's 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."
Mair highlighted that Skellerup was focused on delivering growing and
sustainable financial returns. "We invest in our people to develop better and
more efficient ways of designing and manufacturing products. We design
products and review processes to reduce waste and increase the efficiency of
materials and energy used. We are proud to support the communities where we
operate. The ongoing Covid-19 pandemic has created significant challenges and
changes for our teams around the world. They have embraced these
opportunities and delivered improved financial returns, better environmental
outcomes including reduced water consumption and packaging waste and more
efficient energy usage while keeping our workplaces safe."
Industrial Division EBIT was $32.7 million, a record result and up 57% on
pcp. Revenue was $177.3 million up 12% on pcp. Mair said revenue growth was
broad based across the Division's product range and markets.
"During FY21 we achieved growth in our largest US and Australian markets. Our
capability to change our product formulations to meet increasingly demanding
standards and combine materials to deliver valuable solutions to our key
customers has been - and will remain - key to our ongoing growth. Most
notably in FY21 roofing and construction products and U-DEK marine foam
achieved
significant growth and stronger demand for potable water products was
apparent in the second half of the year."
Agri Division EBIT was $30.5 million, a record result and up 20% on pcp.
Revenue was $102.2 million up 9% on pcp. Mair said the result again
underscored the importance of the essential dairy consumables products that
Skellerup design, manufacture and sell globally.
"Skellerup is the second largest manufacturer of food grade dairy rubberware
in the world. The US and NZ remain our largest markets, but Europe and Asia
were the fastest growing in FY21. We were able to meet the increased demand
by improving our business processes and productivity with limited capital
investment. FY21 also included a full year contribution from Silclear
(acquired in November 2019) compared to the eight-month contribution in the
pcp. Footwear sales were also up lead by the Red Band gumboot; the quality
and durability of this product is synonymous with NZ farming and sales
continue to grow in urban markets."
Chair Liz Coutts noted that NPAT was a key financial measure, but equally
operating cash flow was a critical performance measure to ensure the firm had
the capacity to continue to fund growth.
"In FY21, we achieved a record operating cash flow of $58.8 million - up 22
per cent on the prior record achieved in FY20. This enabled us to fund our
capital expenditure requirements, reduce debt and substantially lift our
final dividend. We have a robust Balance Sheet with very low debt providing
the platform and opportunity for continued investment in growth."
Coutts advised that the final dividend would increase from 7.5 to 10.5 cents
per share (50% imputed as in the pcp) to be paid to shareholders on 15
October 2021 with record date of 01 October 2021. This will bring the total
dividend pay-out for the financial year ended 30 June 2021 to 17.0 cents per
share up 31% on pcp.
"We are very pleased to reward shareholders in Skellerup. Over the past 10
years the pay-out has almost trebled. This demonstrates Skellerup's strong
cash flow and the Board's practice of paying out a consistently high
proportion of earnings," Coutts said.
Coutts said the Group has started strongly in FY22 and she looked forward to
updating shareholders further at the Annual Meeting on 27 October 2021.
For further information please contact:
David Mair
Chief Executive Officer
021 708 021
Graham Leaming
Chief Financial Officer
021 271 9206
End CA:00377524 For:SKL Type:FLLYR Time:2021-08-19 08:30:43
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