Slower footwear sales for the iconic Red Band gumboots contributed to 10% revenue and earnings reductions in FY2024 in Skellerup’s agri division, compared with the previous year.
Agri division revenue was $105 million and earnings before interest and tax were $30.7m.
New chief executive for the listed Skellerup Graham Leaming said New Zealand sales of footwear and other consumables for the dairy industry were subdued as farmers milked longer, deferring maintenance.
Footwear was also impacted by more benign weather conditions compared with 2023.
“Our agri division remains a world leader in the design and manufacture of essential consumables for the global dairy industry and rubber footwear for farming and speciality applications including electricity, fire and forestry.
“We are well positioned and resourced for future growth. During FY24 we have made important investments in equipment, people and facilities.”
Skellerup’s overall results included revenue of $330m, down 1%, and earnings of $72.7m, up 1%.
The industrial division earnings were $46.9m, a record result, up 9%.
Net profit was also $46.9m, after deducting a non-recurring, non-cash tax charge required for the change in legislation to remove tax depreciation deductions on buildings.
Skellerup will pay a final dividend of 15.5c a share 50% imputed, bringing the total dividend for FY24 to 24c, up 9%.
Leaming said the Skellerup team had delivered robust results, amid challenging global economic conditions.
Record operating cashflow meant a further reduction in what was already a low level of debt – $15.4m, down 43%.
During the financial year long-serving CEO David Mair resigned to take up that role at Sanford and was replaced by Leaming, previously the chief financial officer.
