Sydney-based distributor Shriro has suffered through extended lockdowns and a cybersecurity incident to post profits after tax of just $13.5 million, 33.5 per cent below last year’s record results.
Shriro’s EBITDA was down by 27.9 per cent on the previous year, while revenue of $191.8 million was down 7.3 per cent.
The distributor was able to maintain its gross profit margin, despite “significant increases” in supply chain costs.
Local revenue was down 9.2 per cent, with only its Everdure by Heston BBQ business providing a shining light, up 18.2 per cent.
Shriro reported that Casio business was down on the prior year, which it credits to retail store closures.
Likewise, its Appliance business suffered through supply chain costs and homebuilder project delays hitting the bottom down.
The business churned through three chairpersons in six months during the second half of the financial year. In addition, Shriro lost the distribution rights to Blanco, as well as sales of their Omega range of appliances at Harvey Norman.
Internationally, things were a lot brighter for Shriro.
Revenue was up 27.5 per cent to $13.9 million, off the back of a strong performance from USA BBQs, with sales up 56.2 per cent on the previous year. In FY23, Shriro will focus on these international BBQ sales, “with a focus on the USA market and the newly developed pizza oven category.”
Shriro notes that it has a strong balance sheet, with $67.1 million in net assets, zero debt, and cash of $12.9 million.
It will need these strong foundations heading into a wonky FY23.
EBITDA is expected to be down a further 25 per cent on FY22.
“This is caused by salary increases, supply chain cost increases, the Blanco brand exit and the projected subdued consumer spending,” the company predicts.
“Shriro will continue to place a high priority on driving efficiencies and reviewing capital allocation amongst each product category to maximise shareholder return.”
Gross margins are expected to rise, as price increases were implemented on July 1.
As of midday, Shriro shares are down 4 per cent, to 83c. They are down 16.3 per cent this year-to-date.