Pental makes $5.61m profit
Shepparton manufacturer Pental Ltd improved profitability for the 2020-21 financial year despite a COVID-19-driven surge in demand for germ-killing products easing in the second half.
The ASX-listed company reported an 11.7 per cent increase in underlying profit after tax of $5.61 million.
Pental has no debt and ended the financial year with a war chest of $12.7 million which it said provided capacity to fund growth through acquisitions, agency agreements, innovation and market expansion.
Duracell revenue was up 24 per cent after a shift to direct management of its supply to major retailers, and the efficiencies are expected to release $9 million in working capital.
One of few downsides for the company was an impact on export sales to New Zealand and Asia mainly due to shipping delays caused by the COVID-19 pandemic.
Pental has been actively searching for strategically suitable acquisition options and has announced a conditional agreement to acquire Hampers With Bite Pty Ltd to expand its e-commerce expertise and provide an online channel for its customer base.
‘‘We are pleased to deliver a strong FY21 result to our shareholders, especially given the challenges we faced during the year in some of our distribution channels,’’ Pental managing director Charlie McLeish said.
‘‘I am delighted to report that our acquisition search has been successful, and I welcome Hampers With Bite to our group. HWB will transform Pental by boosting our financial scale and delivering new capabilities which are highly complementary to our existing business.’’