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Gum boots were the dress code for the launch of the Te Wai Koiora project at Te Aroha Marae in Kai Iwi, north of Whanganui.
photo: RNZ/Robin Martin
Rubber products manufacturer Skellerup has achieved solid profits despite the difficult global economic situation.
Key figures for the year to June compared to the same period last year are as follows:
- Net profit of $46.9 million vs. $50.9 million
- Revenue $330.5 million vs $333.5 million
- Final dividend of 15.5 cents per share vs 22 cents per share
Skelup chief executive Graham Leaming said he was pleased with the year’s performance.
“Of course, we would like to do better, but given the current economic environment, we think this is a pretty strong result, coming off a weak first half, a very good second half and we have good expectations for the future.”
Industrial sector earnings rose 4 percent on higher demand for their products, while agricultural sector earnings fell 10 percent due to sluggish sales and lower inventories.
Laming said the company’s performance in 2023 was mainly affected by external factors, and the company would not be able to return to this high level for some time.
“That brought demand forward, partly because of Covid, but partly because of our own capacity constraints. So customers were ordering items with longer lead times than we had specified, and then we sold the product that was constrained by capacity, which meant we were able to take delivery a little earlier.
“That probably gave some sort of an unnatural boost in the first half of FY23 and there has been some correction since then.”
Skelup also recorded a one-time tax charge that reduced profit by about $3 million.
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