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OZ Distributors Under Pressure

A number of leading Australian consumer electronics distributions are in trouble, as the latest financials show.

Cellnet, who distributes products from the likes of Logitech, Samsung, Sennheiser, and Wave reported a 10 per cent drop in revenue for the first half of FY23, to $39.2 million.

The distributor posted a net loss of $4.55 million for the half, which has widened by 195 per cent from the prior period, delivering a $0.019 loss per share. The company’s EBITDA loss was $455,000 for the six months.

Shriro markets and distributes an impressive range of kitchen appliances and consumer products, with both its company-owned brands Omega, Robinhood, Everdure and Omega Altise, and third-party brands like Casio and Pioneer.

Shriro saw its revenue drop 11.7 per cent, to $84.4 million during the six months to December – which it largely credits to losing to Blanco brand, who took their distribution inhouse at the start of 2022.

Blanco previously made up 10 per cent of Shriro’s business. EBITDA for the half was down 14.5 per cent for the half, to $12.4 million, while earnings per share dropped from 8.6c to 6.6c, a 23.3 per cent plummet.

Shriro has been forced to counter low seasonal demand for outdoor products such as BBQs by focusing on export revenue, which it was able to grow by 82 per cent, with the summer seasons in Europe and the US accounting for the bulk of this growth.

The full-year outlook for both Cellnet and Shriro remains bleak.

Shriro has forecast an EBITDA drop of 25 per cent, to $18.5 million due to “macroeconomic conditions and reduced consumer demand for our good.”

Cellnet declined to give a full-year outlook, other than to point to a strong gaming range from Capcom, including Resident Evil 4 and Street Fighter 6 – neither of which is likely to move the needle much for the distributor.

 



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