A US blender brand has proven to be the perfect mix for Sunbeam’s parent company.
GUD Holdings says the Oster blender has helped boost Sunbeam kitchen appliance sales in the second half of 2014/15.
While Sunbeam electrical appliances recorded a two per cent decline in sales for the year, sales had lifted three per cent in the second half.
GUD managing director Jonathan Ling said the popularity of the Oster blender was behind the strong lift in sales.
“This momentum in sales led to Sunbeam regaining the leading position in the Australian smaller appliance market in value items during May,” he said.
He said the Oster blender was a benefit from its joint venture with US-based appliance giant Jarden which bought a 49 per cent stake in the Sunbeam brand in 2014.
GUD, which also owns Oates cleaning products, posted a 2014/15 net profit of $33.2 million on Thursday, up 88 per cent from the prior year’s $17.7 million result.
Sales across the group’s commercial and industrial products rose three per cent to a record $612 million in the year to June 30.
Lower freight, logistic and warranty costs also contributed to the profit growth.
Mr Ling said the strong sales momentum was tipped to continue in 2016.
“We expect a further substantial uplift in financial performance in fiscal 2016,” he said.
Oates’ underlying earnings before interest and tax increased three per cent to $11.5 million with sales particularly picking up by seven per cent in the last six months.
The company said the growth mainly came from Oates industrial and commercial customers as opposed to the everyday householder.
The strong result and positive outlook has impressed investors who drove GUD’s share price up 81 cents, or 9.57 per cent, to $9.27 at 1230 AEST.
GUD WHIPS UP STRONG YEAR
* Full year profit of $33.2m, compared to $17.7m profit in 2013/14
* Revenue of $612m, up 3 pct from $591.6m
* Fully franked final dividend of 22 cents, up from 18 cents