White Goods: Its Not All Sunbeams
Gud Holdings today said profits fell 31% to $14.5 million (NPAT) for the first half of the fiscal year to 31 December 2013 (H1), as its Sunbeam appliance brand falters.
The white goods brand suffered from intense competition and broadening of channels to market, where coffee machines are now sold everywhere including mass retail supermarkets, all of which has affected it market position, Gud said in a statement today.
The brand’s product mix includes coffee machines, blenders and deep fat fryers.
White goods is one of the hottest categories in electronics retail right now, with all major brands honing in on the sector as growth in AV categories stall.
Sunbeam revenue fell 8% to 61m in H1. Earnings were hit by drops in sales and declining margins.
A new Ceo was hired to the appliance brand last month, whose main challenge now is to refocus product development to deliver innovative new products, and explore and grow new sales channels.
Oates, Gud’s other appliance brand, fared better, with sales rising 3% to $34 million.
Gud’s total sales fell 4% to $298m, which also includes Automotive and Dexion industrial solutions, a division, which also took a battering the first half.
Gud’s net debt increased $29m to $114m.
Gud Ceo Jonathon Ling said he was “disappointed to announce an unacceptable profit performance from Gud’s core businesses of Dexion and Sunbeam” but says he’s “excited” about restoring profitability to these businesses.
The company predicts EBIT will be 20% lower for the full year.