Skellerup lifts first-half profit 20% to record $28.9m, upgrades outlook

Skellerup has reported a record first-half profit.

Skellerup has lifted its first-half net profit by 20% to a record $28.9 million and has slightly upgraded its full-year earnings forecast.

The company, the world’s second largest manufacturer of food-grade dairy rubberware, now expects an annual net profit of $57m-$62m, up from a previous forecast of $55m-$60m.

Revenue in the half-year to December 31 was $183.5m, up 11%.

Earnings before interest and tax (ebit) came in at $40.6m, up 16% on the previous comparable period, and also a record.

Net debt was $17.5m, a $2.9m reduction on the previous half-year.

Chief executive Graham Leaming said the company had made an “excellent” start to the 2026 financial year.

“The growth in revenue and earnings was broad-based with the most notable contributions coming from the key dairy, potable and wastewater applications.

“Our team across the world has done an excellent job in meeting increased demand, delivering capacity improvements and navigating the impact of fluctuating tariff rates.”

The industrial division’s ebit of $25.1m was up 12% on the previous corresponding period.

The division’s revenue was up 6%, mainly because of growth in sales into potable and wastewater applications, most notably in the United States but also in Australia.

Sales to the roofing and construction sector in Australia and the United Kingdom were up, and sales to marine foam applications in the US continued to improve.

Skellerup’s agri division’s ebit was $18.5m, up 20%.

Agri’s revenue was up 21%, primarily because of increased market share for dairy rubberware consumables, principally in global markets.

Revenue was also boosted by a change in customer delivery terms. Adjusting to exclude this, revenue increased by 18%.

Footwear sales to domestic and international markets were also up.

The most notable impact came from increasing sales and market share for specialist footwear in the US utilities sector.

Inventory levels are being maintained above historical levels to mitigate the risks of supply-chain interruptions and changes in tariffs.

Leaming said global geopolitical uncertainty persisted, which continued to make forecasting future results difficult.

Global markets represented 82% of revenue in the first half.

Skellerup declared an interim dividend of 10.0 cents per share (an increase of 1.0cps), imputed at 40%.

In the 2025 financial year, Skellerup reported a net profit after tax of $54.5m – a record – up 9% on the previous year.

Jamie Gray is an Auckland-based journalist, covering the financial markets, the primary sector and energy. He joined the Herald in 2011.

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