Bremworth (BRW) H2 2024 earnings summary

Executive summary

• Reported net profit after tax of $4.6m for FY24, down from $10.7m in FY23, reflecting lower insurance income and revenue constraints due to Cyclone Gabrielle's impact on inventory and production capacity.

• Revenue declined to $80.3m from $89.7m year-over-year, primarily due to depleted inventory and supply chain disruptions following the cyclone.

• Significant progress made in rebuilding inventory, restoring supply chain, and launching new carpet ranges, positioning for future growth.

• No dividend declared for FY24, but company signals intent to resume dividends by 2026 as transformation completes.

Financial highlights

• Revenue from continuing operations: $80.3m, down $9.4m year-over-year.

• Net profit after tax: $4.6m, down from $10.7m year-over-year.

• Gross profit: $19.5m, down from $24.7m year-over-year.

• Cyclone Gabrielle related insurance income: $26.5m (FY23: $35.5m); related expenses: $14.7m (FY23: $14.3m).

• Cash and bank balance at year-end: $31.6m, down from $39.3m, reflecting investment in inventory rebuild.

Outlook and guidance

• Inventory rebuild and hybrid supply chain expected to enable rapid response to demand and support export market expansion.

• Full reinstatement of Napier plant and supply chain enhancements to drive capacity and growth, with potential to double carpet production.

• Dividend payments expected to resume by 2026 or earlier, contingent on continued operating improvements.