Sydney based distributor Shriro who has reported a 50% increase in profits to $9.8 million, has admitted that a recent hack attack on their business resulted in no trading for three weeks.
The business that also recently lost, the rights to distribute Blanco products in Australia was still able to deliver revenues of $94.3M, this was up 20.0% on the prior six months.
EBITDA increased to $12.3M, up 17.1%.
A major contributor to the Companies revenues was increased demand overseas for the Companies, Everdure by Heston Blumenthal barbecue products.
Export revenue increased by 135.9% due to International demand for the Australian Companies products.
Of concern is the 32% increase in operating profit. In 2019 the business operated without a head office and showroom. In 2020 Shriro took on a new lease for offices in Chatswood NSW.
Also, in the prior period expenses were offset by Government subsidies and reduced staff working hours due to Covid restrictions.
Operating cash flows for the half year were $7.3 million this was significantly lower than the prior year, as the Group purchased extra inventory given global supply chain uncertainty claims management.
As a result of Shriro’ s focus on conserving capital in CY20, the 17.3 million cash position was lower as of 30 June 2021 Vs $19.7M in the prior year.
CEO Tim Hargraves said that the outlook for the Group continues to be influenced by the uncertainty associated with COVID-19 as well as global trade, geopolitical and economic factor.
He said that the group’s trading was impacted in the first quarter of FY22 by further lockdowns and a cyber incident which resulted in Shriro’ s operations being closed for three weeks.
Hargraves has not elaborated on the hack attack which was reported to the Australian Government Cyber Team.
He has also not said whether any money was demanded to unlock the Companies computer network.
He said that July sales orders were fulfilled in August and that the hack attack was expected to have a bearing on FY22 outlook for the NSW based distributor.
Recently Shriro transferred its Blanco division to Blanco Australia Pty Ltd this will take effect from 1 May 2022.
Hargraves said that Blanco represented just over 10% of the Group’s revenue in CY21, consequently Shriro will focus its future growth strategy on the Group’s owned brands, Everdure kitchen, Robinhood and Omega in the Appliances market.
International BBQ revenue is expected to continue to grow with greater marketing investment to drive consumer awareness and a focus on the retail expansion of the Everdure by Heston Blumenthal brand.
Shriro is also focused on pursuing new high margin, non-competitive products for distribution in Australia and New Zealand.
