Bremworth (BRW) H2 2024 earnings summary

Executive summary

• Net profit after tax for FY24 was $4.6m, down 57% from $10.7m in FY23, mainly due to Cyclone Gabrielle's impact on the Napier plant and supply chain disruptions.

• Operating revenue declined 10% year-over-year to $80.3m, with carpet and rug revenue down 20% to $57.1m, while Elco Direct wool revenue grew 28% to $23.2m.

• The company rebuilt inventory, established a hybrid supply chain, and invested in R&D and new product launches to support future growth.

• Insurance proceeds of $26.5m were received in FY24, with total progress payments since the cyclone reaching $62.0m.

• No debt at year-end; cash balance was $31.6m, down $7.7m due to inventory rebuild and cyclone-related expenses.

Financial highlights

• Operating revenue: $80.3m (down 10% year-over-year).

• Net profit after tax: $4.6m (down 57% year-over-year).

• Gross margin: 24.3% (down from 27.6% in FY23).

• Basic EPS: 6.63 cents (down from 15.39 cents in FY23).

• Cash and bank: $31.6m at year-end.

• No dividends paid; dividend payments expected to resume by 2026.

Outlook and guidance

• Focus on scaling in Australia and exploring US market entry.

• Four new product ranges to launch in early FY25.

• Hybrid supply chain expected to support over 90% product availability in Q1 FY25.

• Return to dividend payments anticipated by 2026 or sooner.