Amber: Lifestyle Up, Pro Down As Results Improve
Contrasting its previous earnings report, ASX-listed audio and visual distributor, Ambertech, has posted a 5.8% increase in half-year net profit to $488,000. Whilst its ‘lifestyle’ arm buoyed during the half-year, the Pro division slumped.
The results follow a $461,000 net-profit recorded for the previous half-year.
For the six months to December 31st, sales revenue from Ambertech’s ‘Lifestyle Entertainment’ segment climbed 6.1% to $15.2 million.
Compared to the same period in 2016, ‘Lifestyle’ EBIT climbed 5.3% to $1.1 million – up from $759,000 recorded for the previous half-year.
The distributor credits higher sales from its dealer network – specifically within residential and commercial installation markets – for the segment’s improved results.
Ambertech claims sales to consumer electronics retailers during the half-year “remained steady”.
Concerning its ‘Professional’ segment, the Sydney-based distributor posted a 5.2% increase in sales revenue to $10.5 million.
Half-year EBIT for Ambertech’s professional arm plummeted 186%, posting a $122,000 loss.
The distributor claims despite “a number of successes” within its Pro arm, EBIT dropped as a result of “mixed business activities” – notably some “market-seeding” projects completed by its media systems group, which it expects to reap future benefits from.
Despite this, Ambertech affirms its pipeline of Pro project work is “strong”, and is forecast to reflect this is the coming period.
Ambertech’s New Zealand operations also struggled, posting a 14.2% reduction in half-year revenue to $1.6 million, and EBIT diving 233% to a $110,000 loss.
The distributor affirms on hand inventory levels have continued to reduce, as its looks to reduce its return on inventory investment.
For the half-year, Ambertech’s EBIT/Sales ratio has improved, from 2.7% in 2016 to 2.9% by December 31st.
Marketing costs have dropped versus the previous half-year period, from $695,000 to $482,000.
Distribution costs somewhat dipped, from $772,000 recorded in the previous half-year, to $728,000.
Speaking of its future outlook, the distributor expects to see improvements from its Pro arm in the second-half of the year. Ambertech remarks that the second half of the year has historically been more difficult for the distributor.
No dividends have been paid or declared for the half-year period.