Consumer products company McPherson’s Limited has achieved an after-tax profit of $10.9 million for the six months to 31 December 2012.
This is slightly down from $11.7 million from continuing operations in the corresponding period but in line with guidance provided at November 2012.
Sales revenue in the first half of the 2013 financial year increased to $153.2 million from $143.9 million in the same period 12 months prior.
“This solid result demonstrates the resilience of our product range at a time when consumer spending on discretionary items has been weak,” says Paul Maguire, managing director. “We have taken significant steps to increase the productivity and efficiency of all aspects of our operations, while continuing to strengthen our brands and product portfolio, and the company is well placed to benefit as consumer confidence improves.
“Revenue growth was underpinned by a 36 per cent increase over the previous corresponding period in sales of our personal care products, helped by the acquisitions of the Moosehead and Da Vinci brands (Cosmex International) in January 2012 and the Footcare brand in August 2012. Excluding these acquisitions, the introduction of new products enabled us to increase sales in our personal care range by an aggregate of 10 per cent. Personal care products contributed 33 per cent of the company’s revenue.
“Household consumable products accounted for 34 per cent of company revenue. Market-leading brand, Multix, maintained its leadership position with a two per cent increase in sales revenue.
“Homewares, which are marketed under the Wiltshire, Stanley Rogers and complementary agency brands, contributed 28 per cent of company revenue. Sales revenue declined by six per cent due to the net effect of retailer range rationalisation, but higher sales are expected in the second half following a major launch of new ranges, resulting from a strong platform of innovation.
“Revenue from the impulse merchandising business, which accounted for five per cent of company revenue, declined by 15 per cent due to the net effect of distribution changes. New opportunities are being pursued with a major retailer,” he adds.
To help cut costs and improve efficiency McPherson’s has introduced several measures including a quality management program, mobile customer relationship system for the field team and a revised new product development process.
Maguire expects second half results will be an improvement on the second half of the 2012 financial year.
