Schaffer Corporation (SFC) H1 2025 earnings summary

Executive summary

• Statutory NPAT for 1H25 rose 44% to $12.7m compared to $8.8m in 1H24, with EPS up to $0.94 per share.

• Revenue for the half-year ended 31 December 2024 was $112.3m, nearly flat compared to $112.9m in the prior year period.

• Automotive Leather maintained profit at $7.8m despite a 9% revenue decline and supply disruptions; Delta's NPAT nearly doubled to $4.2m.

• Group Investments NPAT increased to $2.3m, mainly from net unrealised gains on equity investments.

• Fully franked interim dividend of $0.45 per share declared, consistent with prior periods.

Financial highlights

• Group revenue was $112.3m, slightly down from $112.9m in 1H24.

• Cash generated was $18.4m, down from $27.6m in 1H24, reflecting lower capital expenditure and steady working capital.

• Net debt decreased to $27.9m from $33.6m at June 2024.

• Pre-tax net equity value of Group Investments rose to $219.9m ($16.18/share) from $210.9m ($15.53/share) at June 2024.

• Gross profit increased to $28.7m (from $27.0m), with gross margin at 25.6%.

Outlook and guidance

• Automotive Leather expects higher profitability in 2H25 as delayed program launches and operational efficiencies materialize.

• Delta's 2H25 profits are expected to be near break-even due to industry overcapacity and project completions.

• Group Investments may see profit volatility due to periodic revaluations.