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UPDATED: Smeg Profits Fall As The Company Looks To Rebrand

Smeg Australia is set to undergo a major rebranding as they look to grow profits that slumped during the last reported financial year.

While revenues grew $9M to $158.8 million profits fell to $2.1M over $2.2M in the prior year according to financials lodged in October 2018.

Recently the Italian owned Company appointed new management who immediately moved to appoint new marketing partnerships while undergoing a major brand study.

 

In March 2017 the minority shares in Smeg Australia were acquired by Smeg S.p.a who now own 100% of the shares in the Australian operation.

On March 19th, 2018, the Italian Company paid out their $12M bank loan in full.

ChannelNews understands that the new management team has recently undertaken a major brand and product positioning study in Australia with the results shown to senior management in Italy.

The Company has also undertaken a recent marketing review of creative agency, PR and media buying following the appointment of Olivia Anderson a former employee at Fisher & Paykel.

ChannelNews understands from retailers that Smeg is looking to become a premium brand alongside Miele and brands such as ASKO and Electrolux.

During the past financial year Smeg spent $19 on marketing, this was less than the prior year.

Cost of sales increased from $108M to $116M, no explanation has been given for the sharp rise in cost of sales however European brands have been hit by the fall in the Australian dollar Vs the Euro.

UPDATE:Olivia Anderson has since left the Company along with CEO Jim Kalothas.



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