a day ago
Skellerup posts record profit
Gumboots 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 goods maker Skellerup has reported record revenues and profits as it prepared to counter the longer term effects of US tariffs.
Key numbers for the 12 months ended June compared with a year ago:
Chief executive Graham Leaming said the group had consistent performance across the company with a ninth successive year of underlying profit growth.
The company, known for its 'red band' gumboots, is also a big producer of components for industrial and agricultural products, and it increased earnings in both divisions, while lowering its finance costs.
The US is a key market producing 37 percent of Skellerup's revenue, and Leaming said the company had
anticipated tariffs
and built up stock levels before the tariffs were imposed, and looked to control costs and adjust prices.
"Also, and importantly - both ahead of and post their imposition - we have been investing in modernising our manufacturing capability to build a more flexible platform capable of in-market deployment."
The tariffs are expected to cost the company $5 million in the current year.
Chairperson John Strowger said the company's business was durable but it was looking to expand manufacturing overseas.
"It will be important to develop new markets for our products - the establishment of in-market capability would result in capacity at existing facilities. The management team is undertaking work in this area now.
"Some of the future initiatives we may implement - in particular, if the establishment of in-market capability is pursued - will be more significant, from both a financial and operational perspective."
