Thursday 25th February 2021
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Cavalier Corporation Limited has reported a strong year on year uplift in profitability as it benefits from higher woollen carpet sales, the sell down of its synthetic carpet stock as it exits the non-wool sector and the gain from the Auckland property sale and leaseback.
Profit after tax increased strongly to $4.3m, up $5.5m on the prior year, with a $3.0m improvement in underlying business performance and a $2.5m net gain on the sale and leaseback of the Auckland property.
Results were at the upper end of the guidance range provided in December 2020 with normalised EBITDA up 61% on the previous comparable period to $4.8m (guidance of $4.0m to $5.0m).
There are indications of positive economic growth in both New Zealand and Australia which will benefit Bremworth retail sales. New Zealand woollen carpet sales volumes for FY21 are expected to be well up on prior year, with Australian woollen carpet sales volumes also expected to improve when current disruptions to the supply chain are resolved. Recent initiatives, particularly in Australia, to expand the retailer networks, are expected to help drive a lift in sales once supply improves.
Cavalier has a strong platform from which to continue its transformation journey, with a clear strategy, zero debt, a right sized organisational footprint and an experienced team.
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