Wellington Drive first-quarter sales climb 30%, earnings on track
By Paul McBeth
April 21 (BusinessDesk) - Wellington Drive Technologies, which makes energy efficient motors and control systems for commercial refrigerators, lifted first-quarter sales 30 percent as the company's focus on Latin America continues to underpin its long march to profitability.
The Auckland-based company generated earnings before interest, tax, depreciation and amortisation of $600,000 on revenue of almost $13 million in the three months ended March 30, and expects strong sales growth to continue, chairman Tony Nowell told shareholders at today's annual meeting.
"Regardless, the $600k ebitda performance is materially better than Q1 2016, and we expect no change to our full year estimate; to achieve revenue growth in the 30 percent to 40 percent range and ebitda profit in the low millions of dollars," Nowell said in speech notes published on the NZX. "Our strategy to expand the motor product range, further develop the SCS Connect solution and develop new customers for those products in new markets, will continue at pace."
The company marked its first positive ebitda result in calendar 2016 as a five-year turnaround plan came to fruition, and it's now developing a range of 'Internet of Things' products for large food and retail brands as a second stream for the business.
The shares rose 3.6 percent to 29 cents, having jumped 73 percent so far this year.