Methven Limited (MVN.NZX)

IRG

Tuesday 9th December 2014 2 Comments

Methven Limited (MVN.NZX) is a New Zealand-based company which designs, manufactures and supplies shower ware, tap ware and water control valves. Its Shower Skincare products include the four-step process, aromatherapy, NZ Botanicals, Water Purity, Skin Cleansing, Skin Conditioning and Skin Nourishing. Its Bathroom products include slide showers, basin taps, shower taps, bath taps, basin faucets, shower heads, overhead showers, hand showers, shower mixers, basin mixers, bath mixers and spouts. Its kitchen and laundry products include sink mixers, sink faucets, sink taps and washing machine taps. Its subsidiaries include Methven Australia Pty Limited, Methven USA Inc., The Deva Tap Company Limited, Methven UK Limited, Windsor Water Fittings Limited, Howard Bird & Company Limited, Methven (Xiamen) Showers & Taps Co., Limited and Methven Hotel Solutions Pty Limited.

The management of Methven stated that the purchase of Chinese premium tap ware supplier /manufacturer invention Sanitary remains on track for completion on and is expected to deliver US$2 million NPAT per annum from September 2014. The management also stated that they are confident about the increase in demand of MVN’s products but also acknowledges the fact that improvement in trading revenues has been slow and will take some time to recover back to its pre GFC level. Methven has also invested in research for an advanced showering system which is in track for launch in all its key markets in early 2015.

Overall the management believes that the group revenue and earnings growth will remain modest in FY2015. The first half growth will be impacted by AUD currency headwind and the high sell-in that created overstocks in the first half of FY2014.

Comments from our readers

On 18 December 2014 at 6:02 pm Don said:

As a shareholder I have been quite disappointed with the sales performance of Methven, when one considers the ChCh rebuild and Auckland uplift in new building, have driven building supplies sales strongly upward.

On 6 January 2016 at 1:02 am Brian said:

I agree with Don. Methven's product development is outstanding, but doesn't seem to be getting the sales traction it deserves. Needs more marketing to improve brand and product awareness.