Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Methven affirms FY profit guidance

Methven affirms FY profit guidance, investment plans trim first-half outlook

By Sophie Boot

Nov. 1 (BusinessDesk) - Shower and tapware designer Methven affirmed its expectation for earnings growth on a constant currency basis in 2018 but said first-half profit won't rise due to planned investment.

Auckland-based Methven was projecting net profit on a constant currency basis to be 10 percent higher than the $5.8 million it posted in 2017, a period it described as "very disappointing".

Chief executive David Banfield told shareholders at today's annual meeting in Auckland that the company expects flat or slightly lower first-half earnings due to earmarking $579,000 for its "Fit 4 the Future" business transformation plan.

In the first quarter, ended Sept. 30, profit rose 32 percent on a constant currency basis, although tapware continued to underperform, Banfield said. Tapware sales are forecast to persist at current levels until Methven begins new activity in the third quarter of 2018 and starts selling new products in the fourth quarter of 2018.

"Despite there being a number of one-off impacts in the year, we recognise that tapware performance across Australia and New Zealand was poor and that our focus on showering has left room for private label and smaller brands to win some share from us in the tapware market," Banfield said. Competitors sourced cheaper products overseas and Methven's investment in New Zealand designed to drive top-line revenue failed to deliver expected growth in 2017, he said.

The shares recently rose 1 percent to $1.01, and have fallen 25 percent this year

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Department Of Conservation: Beech Mast On The Cards After Warm Summer

Climate modelling shows this year’s hot March has increased the chance of beech forest seeding next summer in parts of New Zealand, which could be bad news for native wildlife. The Department of Conservation (DOC) uses data from NIWA’s virtual climate ... More>>

Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on seek.co.nz. Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Geo40: Global Plans To Recover Low-Carbon Lithium At Scale Accelerated By Investment Of Up To $7.5m By Pacific Channel

New Zealand’s leading sustainable, mineral-recovery company, Geo40 Limited has secured up to $7.5m in equity investment from New Zealand deep-tech specialist Venture Capital firm Pacific Channel to fast-track plans to develop its nascent lithium-from-geothermal-fluid ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>