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McPherson's Limited announces profit growth
[Tue 23/08/2011 02:34:24]
 McPherson’s Limited has recorded an after-tax profit of $28 million before goodwill impairment for the 2010-2011 financial year.
It is a 9.3 per cent increase on the year before for the consumer products and printing group, however, an $8.5 million impairment charge relating to acquisitions made by the printing business takes the profit to $19.5 million.
Net debt decreased to $56.6 million from $77 million a year earlier thanks to strong operating cash flows. It represents 28 per cent of shareholder funds down from 39 per cent at 30 June 2010.
Sales revenue in the consumer products division, which includes brands such as Wiltshire, Stanley Rogers, Manicare, Lady Jayne, Swisspers, Home Living and Multix, remained on par with the last financial year despite tough trading conditions experienced by the company’s retail clients.
“Trading conditions are expected to remain challenging due to a subdued retail sales environment and continued upward pressure on costs, however, the high proportion of non-discretionary items in the company’s product range, the strength of our brands and our sourcing and product development capabilities mean we remain well placed to contend with these challenges,” says managing director Paul Maguire.
Revenue increases from Multix, Swisspers and Stanley Rogers helped offset lower revenue from other brands and a decline in impulse merchandising because of a drop in available selling space from some retailers.
The high performing Australian dollar aided margins, which were partially compensated for higher input costs due to increased commodity prices and factory labour costs in China and falling consumer confidence.
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