Skellerup lifts half-year profit, on track for record year

Skellerup has reported a bumper first-half profit. Photo / Supplied

Skellerup said its net profit lifted by 19 per cent to $23.2 million in the six months to December and that it was on track for a record profit for the full-year.

The specialised rubberware manufacturer's result was in line with its earnings guidance, issued early this month.

Revenue for the six months to December came to $150.5m, up 10 per cent on the previous corresponding period, while earnings before interest and tax (ebit) rose by 18 per cent to $32.4m.

Skellerup's industrial division reported ebit of $18.7m, up 20 per cent while the agri division ebit was up 9 per cent to $16.7m.

Net debt came to $25.6m, up $16.9m on the 2021 year-end.

Skellerup lifted its interim dividend by 1 cent to 7.5 cents per share.

Chief executive David Mair said Skellerup's earnings performance was the culmination of years of "hard thinking" about the essence of the business and laying a foundation for future success.

"That essence is designing and developing real solutions to predominantly original equipment manufacturer customers, and our unwavering focus on their needs," he said in a statement.

"Growth was broad based, and strongest in US, NZ and Asian markets, notwithstanding the impact of longer shipping timeframes, material shortages, freight and material costs increases," he said.

Covid-19 interruptions were successfully overcome.

Dairy rubberware sales were up, particularly in the US market.

The agri division was also boosted by increased footwear sales across all markets, and particularly in New Zealand.

Mair said the company would continue to manage the many disruptions caused by Covid-19, primarily in international shipping.