Shriro Holdings (ASX: SHM) AGM Highlights and FY24 Results
Financial Performance Overview
Shriro Holdings Limited (ASX: SHM) reported a FY24 revenue of $119.5 million, a 3.7% decline attributed to lower BBQ export sales following the Covid-19 market slowdown. The company’s EBITDA was $14.5 million, impacted by one-off restructuring costs and ERP investments totalling $2.8 million. Despite these challenges, the EBITDA margin improved to 12.1%, up from 11.5% in FY23.
Cash Management and Dividends
As of 30 June 2024, Shriro maintained a cash balance of $24.3 million, with no debt. The company declared a fully franked final dividend of 3.0 cents per share, bringing the total for FY24 to 5.0 cents, along with a capital return of 18.5 cents per share. Shriro aims for a $15 million share buy-back in FY25, pending shareholder approval.
Future Growth Initiatives
CEO Tim Hargreaves highlighted efforts to optimise business efficiency and enhance international BBQ sales through new product releases. Shriro exited its Australian seasonal business operations and appointed a distributor to maximise global returns. Strategic international growth remains a priority, with plans to introduce innovative products in FY25 and FY26.
Market Outlook
Looking ahead, Shriro anticipates growth in EBITDA for FY25, largely driven by new BBQ product launches and an improving market for outdoor consumer goods. The company aims to expand its distribution partnerships while mitigating risks associated with high acquisition costs in the current economic environment.
Executive Remarks
Abigail Cheadle, Chair of Shriro, expressed gratitude towards the management team for their resilience in a challenging market and reiterated the board’s commitment to maximising shareholder returns. The focus will remain on strengthening core distribution brands and expanding the company’s product offerings.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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