Skellerup made a net profit after tax of $40.2 million, up 38%, in the financial year ended June 30.
The result exceeded the company’s most recent guidance of $37m to $39m, made back in April.
Earnings before interest and tax (Ebit) were up 33% on the previous financial year to $56.4m and revenue was $279.5m, up 11%.
The Ebit for the agricultural division was $30.5m, up 20%, and the revenue just over $100m.
The directors have declared a dividend payment of 10.5c a share (50% imputed) in addition to the interim of 6.5c.
Chief executive David Mair says the growth in earnings came from focus on engineered products for critical applications in everyday commerce.
“These are the supply of safe potable (drinkable) water; the production of milk and milk products; the performance of appliances in homes and workplaces; health and hygiene in hospitals, shops and homes; the safety and comfort of sporting and leisure equipment; and the integrity of roofing systems on homes and workplaces,” Mair said.
The efforts of the company’s employees went into the development of better and more efficient designing and manufacturing of products.
Skellerup is the second-largest manufacturer of food grade dairy rubberware in the world.
The largest markets are in New Zealand and the United States, but European and Asian markets were fast-growing in 2021.
“We were able to meet the increased demand by improving our business processes and productivity with limited capital investment,” he said.
“Footwear sales were also up lead by the Red Band gumboot; the quality and durability of this product is synonymous with NZ farming and sales continue to grow in urban markets.”
Following the results announcement Skellerup shares rose 25c to $5.50 and have risen $2.90 or more than 100% during the past 12 months.
On the current share price the gross dividend yield during the past year was 3%.
