Skellerup announced a record profit for the year to June. Photo / Supplied

Skellerup notches up another record profit, lifts dividend

Author: Jamie Gray, NZ Herald,
Publish Date: Thu, 18 Aug 2022, 1:53PM

Specialised rubber products manufacturer Skellerup's net profit rose 19 per cent to $47.8 million in the June year - another record.

The company had earlier forecast a net profit within a $44m-$47m range.

Skellerup's revenue jumped 13 per cent to $316.8m and its earnings before interest and tax (EBIT) gained 18 per cent to $66.8m.

The final dividend came to 13 cents, bringing the total to 20.5 cents - up 21 per cent on the previous comparable period.

Chief executive David Mair said the growth in earnings was the outcome of Skellerup's "unwavering focus" on working closely with key customers to provide engineered products used in a range of critical applications.

"Our products are critical to the supply of safe potable water; the production of milk and milk products; the performance of appliances in homes and workplaces; health and hygiene in hospitals, shops and homes; the safety and comfort of sporting and leisure equipment; and the integrity of roofing systems on homes and workplaces."

Skellerup's Industrial Division EBIT was $39.1m, a record result and up 20 per cent on the previous year's.

The division generates 85 per cent of its revenue from international markets.

The Agri Division's EBIT was $33.6m, another record result and up 10 per cent.

Mair said agri's result underlined the importance of the essential dairy consumable products that Skellerup sells globally.

Skellerup also increased sales of dairy rubberware and footwear in the US and New Zealand markets.

Chair Liz Coutts, who is stepping down, said the group was in a robust financial position.

Skellerup's acquisition of Talbot Advanced Technologies last year had enhanced the company's capability and capacity to design and make engineered plastic products, she said.

In the year, Skellerup also increased its inventory to ensure that it could overcome longer shipping timeframes, port congestion and raw material shortages.

Skellerup said Coutts would retire as chair at the annual meeting on October 26.

She will be succeeded by John Strowger.

- Jamie Gray, NZ Herald