By Patrick Avenell
Sunbeam is planning on releasing eye-catching new products in its bid to stimulate spending and improve profits, according to documents lodged by its parent company, GUD Holdings, to the Australian Securities Exchange today.
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GUD’s consumer brands, Sunbeam and Oates, registered $219.2 million in sales during the 2012 Financial Year, down 7 per cent on the preceding year. Underlying earnings before interest and tax is predicted to be $33 million before restricting costs are included. This is down 15 per cent from the $38.8 million from the 2011 Financial Year.
“Competitive conditions, leading to price adjustments, [have] contributed to the sales drop,” is how this document explains the profit dip. “Sunbeam maintained unit volumes across Australia and New Zealand.”
During a section headed ‘Outlook’, the document presents an optimistic vision for the short term.
“Substantial new product launches [are] planned for Sunbeam…to counter market conditions.”
Across all its brands and business, and including the sale of shares in the rival Breville Group, GUD Holdings recording a net profit after tax of $92.8 million (up 134 per cent) off $609.1 million (up 3 per cent) in sales. The substantial difference in profit increase and sales increase is almost entirely attributable to the Breville share sale, which included a net gain of $49.4 million.