Full Year 2025 Skellerup Holdings Ltd Earnings Call Transcript
Key Points
- Skellerup Holdings Ltd (NZSE:SKL) achieved a record EBIT of $78 million, marking a 7% increase from the previous year and the ninth consecutive year of EBIT growth.
- The company has maintained a strong operating cash flow of $66.5 million, despite increased investment in inventory to mitigate tariff risks.
- Revenue growth was broad-based, with the Industrial division up 7% and the Agri division up 8%, supported by strong demand in key markets.
- Skellerup Holdings Ltd (NZSE:SKL) has successfully managed tariff impacts, with direct costs from new tariffs being less than $0.5 million in FY25.
- The company has continued to invest in modernization and capacity expansion across New Zealand, the U.S., Europe, and China, enhancing its manufacturing capabilities.
- Higher freight costs were incurred due to tariff-related disruptions, impacting overall profitability.
- The company faced indirect impacts from tariffs, such as a large customer in the health and hygiene sector suspending deliveries, affecting demand patterns.
- Despite strong revenue growth, the gross margin remained largely unchanged from the prior year, indicating pressure on profitability.
- The Australasian construction market remains weak, affecting demand for roofing and construction products.
- Skellerup Holdings Ltd (NZSE:SKL) anticipates an increase in tariff costs of $4 million to $5 million for FY26, posing a headwind to future earnings growth.
Okay. Good morning, and welcome, everyone. I think we've just ticked over to 10:00 a.m., so we'll get underway. Tim and I will summarize the highlights from FY25, provide some context around key impacts and the markets and applications we're focused on. Please remain on mute with your cameras off if possible.
We'll take questions at the end and probably the best way to do that is to raise your virtual hand and then Tim will take those in turn. Overall, very pleased with the result and our position and it really reflects an excellent contribution from our businesses and people around the world. We'll move to Slide 2. Okay, so the graphs, you've seen these before. We've used these for a couple of years now.
It shows revenue, gross margin percentage and EBIT over the past 7 years. So over that 7-year period, our EBIT has grown at a compound annual growth rate of 10%, and that's been underpinned by revenue growth and gross margin expansion. And these results really are an outcome of our primary focus on engineered polymer
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
