No red band for Skellerup

The 19% jump in net profit came on the back of a 13% increase in revenue, which reached $317m.

Earnings before interest and tax (EBIT) for the agri division topped $34m, up 10% on the previous year. Agri revenue was $110.6 million, up 8%.

Skellerup chief executive David Mair says the result continues to underline the importance of the dairy consumable products that Skellerup design, manufacture and sell globally.

“Our agri division is a world leader in the design and manufacture of essential consumables for the global dairy industry and the design and manufacture of rubber footwear for farming and specialty applications including fire, forestry and electricity,” he says.

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

The company claims that further productivity gains at its large NZ and China manufacturing facilities helped offset the significant impact of increased raw material prices and freight cost.

“We have also increased our technical resources and invested in additional capacity to provide the platform for further growth,” says Mair.

The industrial division EBIT was $39 million, up 20%.

Mair highlighted Skellerup’s continuing investment in systems and people to deliver sustainable financial returns.

“We regard investment in systems, process and people as critical to our future success. This requires not only investing in systems but ensuring we carefully evaluate our performance, injecting new people into our businesses to challenge and improve what we do.”

Outgoing Skellerup chair Liz Coutts says the strong financial position allows the company to continue growing returns for shareholders.

A final dividend of 13c/share will be paid to shareholders in October, bringing the year’s total dividend to 20.5c/share.

Coutts will step down at Skellerup’s annual meeting on October 26 and will be succeeded by John Strowger.