By Gavin Evans
Oct. 31 (BusinessDesk) - Shower and tapware designer Methven says the new financial year has started well with a 6 percent lift in September quarter revenue and net profit growth for the period of $560,000.
The company, which has added China to its international expansion, now gets most of its sales in Australia.
Strong growth there, the UK and China has seen international sales grow at a compound annual rate of 4.7 percent the past three years, while earnings before interest and tax increased almost 58 percent on the same metric.
Methven told shareholders today it expects net profit growth of at least 10 percent this year.
It is expecting international sales to drive “increasingly strong” revenue growth this year. September quarter sales in China rose to 3.9 million renminbi, from 3.4 million in the June quarter and 569,000 a year earlier.
The company said new product development was yet to benefit the New Zealand business, although it saw evidence of “modest growth” here in the second half of the financial year.
Methven shares rose a cent to $1.17 and have gained about 10 percent this year.
The company reported a 22 percent increase in net profit to $6.6 million in the year ended June 30. Earnings before interest and tax lifted 20 percent to $10.7 million, and revenue rose 5 percent to $105.1 million, even as New Zealand sales fell 7.2 percent to $32.5 million.
Today the company said “fixing” the New Zealand business, where it had hoped to increase sales last year, remained an area of significant activity and focus.
It also aims to accelerate its international growth, particularly in China, which it wants to make a “strong fourth leg” of the business.