Skellerup Holdings (SKL) H1 2025 earnings summary

Executive summary

• Record first-half NPAT of $24.2 million, up 12% year-over-year, and record EBIT of $35.0 million, up 11%, driven by strong Agri division rebound and robust product portfolio.

• Revenue increased 5% to $165.3 million, with strong international dairy consumables demand offsetting weaker footwear and leisure sales.

• Interim dividend increased by 6% to 9.0 cents per share, imputed 50%, reflecting strong earnings and cash flow.

• Net debt reduced to $20.4 million, representing 6% of total assets.

• Strategic inventory build to mitigate risks from shipping delays, port interruptions, and potential U.S. tariff increases.

Financial highlights

• NPAT up 12% year-over-year to $24.2 million; EBIT up $3.4 million (11%) to $35.0 million, driven by improved gross margins and operational improvements.

• Revenue rose 5% to $165.3 million; EPS increased to 12.33 cents; EBITDA was $43.2 million, up from $39.4 million in HY24.

• Operating cash flow of $32.2 million, down 12% year-over-year due to higher inventory investment for risk mitigation.

• Net debt at $20.4 million, down 23% from December 2023.

• Interim dividend of 9.0 cps, up 0.5 cps (6%) on pcp; dividend payout for the period totaled $30.4 million.

Outlook and guidance

• FY25 NPAT guidance set at $52–$56 million, with growth from existing and new products expected to offset mixed global economic and political conditions.

• Impact of potential U.S. tariff changes expected to be minimal for FY25 due to inventory strategy.

• Continued focus on product pipeline expansion and acquisition opportunities.

• Anticipated reduction in inventory in the second half, but likely to remain above FY24 levels for risk mitigation.

• Second half expected to be seasonally stronger, especially for Agri and Industrial Divisions.