Skellerup posts record first half-year result, prepares for possible US tariff hikes

By Anan Zaki

Business reporter·RNZ·

13 Feb, 2025 02:00 AM2 mins to read

Skellerup said its 12% profit improvement reflected a return to normal in the agriculture division. Photo / RNZ

By Anan Zaki of RNZ

Rubber goods maker Skellerup has posted a record first half-year profit as its agricultural division rebounded, and the company says it’s preparing for possible tariff hikes in the United States.

Key numbers for the six months ended December compared with a year ago:

Net profit $24.2m v $21.6m
Revenue $165.3m v $157.7m
Underlying profit $35.0m v $31.6m
Interim dividend 9 cents per share v 8.5 cps

The maker of the Red Band gumboots said the 12% profit improvement reflected a return to normal in the agriculture division, despite a drop in footwear sales.

“We are pleased with the record first-half result underpinned by an expected but significant lift from our agri division, which reverted to a more normal seasonal pattern with stronger sales of dairy rubber-ware consumables in international markets,” chief executive Graham Leaming said.

Skellerup’s previous year’s result was affected by customer de-stocking.

It said footwear sales were weaker, particularly due to weaker economic conditions in New Zealand.

Skellerup’s operating cash flow fell 12% as it increased its inventory levels to manage disruption to shipping routes and in case of US port strikes and a possible increase in US tariffs.

Its industrial division saw a slight fall in earnings, as the company faced a slowdown in the Australian construction market, the timing of sales into the mining sector and lower demand for high-performance marine foam products in the US.