Paper giant Spicers has reported a statutory profit after tax of $5.3m for the full year ended June 30, with all of that coming from its first half performance
The full year profit of $5.3m falls $1m short of the profit it managed during the first half of the year, when it reported a profit of $6.3m.
This is the first year Spicers – which was Paperlinx until it rebranded last year – managed to make a profit after eight years spent in the doldrums.
The company’s failure to penetrate the European market led to a spectacular loss of $392m last year, and subsequently saw it rebrand from PaperlinX to Spicers and pull back operations to Australia, New Zealand and Asia.
The paper, packaging and signage group’s revenue in Australia, new Zealand and Asia fell 2.8 per cent to $392.7m compared to last year’s $403.9m, however underlying EBIT rocketed by 42 per cent to $4.5m.
Sales in the Australian and Asian operations both took a tumble, with Australia’s revenue sliding from $219.4m to $210.9m and Asia’s dropping from $92.4m to $83.9m. New Zealand proved to be a strong market with its revenue rising from $92.1m in 2015 to $97.9m this year.
In both Australian and Asian markets the drop was attributed to ‘ongoing structural decline and competitive pressures in the commercial print business’, however Asia’s woes were compounded by a ‘combination of decisions to scale back in some less profitable markets’.
Commenting on the performance, Spicers chairman Robert Kaye SC says the company has achieved ‘solid overall results’.
“Achieving a statutory profit and an improved underlying EBIT result validates strategic decisions taken in 2015 to refocus the company on the ANZA region only,” he says.
“Under the strong leadership of the new CEO, Mr David Martin, we will focus on maximising returns in the Commercial Print business and continuing to vigorously grow diversified operations via a combination of organic growth and suitable acquisition opportunities.”
Martin replaced former CEO Andy Preece in July. Preece had only served a year in the role and was credited for steering the company out of the European debacle.
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