increase font size
Bremworth reports a $4.6 million profit for year ending June 30, 2024.
Wool carpet and rug manufacturer Bremworth says it’s emerging from a period of significant transformation, rebuilding from damage caused by Cyclone Gabrielle and moving away from synthetics to the production of wool carpets and rugs.
The listed company reports a $4.6 million profit for year ending June 30, 2024 – compared to $10.7m the prior year. It also signalled a return to dividends by 2026.
Annual revenue also declined $9.4 million to $80.3 million, reflecting the inability to meet all consumer demand with the severely depleted inventory levels that resulted from the cyclone’s flooding of the Napier yarn plant at the start of the period. Challenges faced in accessing yarn at the right quantity also impacted revenue until recently, the company says.
Cyclone Gabrielle related insurance income in FY24 totalled $26.5m (FY23 $35.5m), taking insurance proceeds received to date to $62m.
While constraints on stock availability saw annual revenue fall, sales from its wool-buying division, Elco Direct, increased as it increased its share of the wool clip at the farm gate to drive its volumes up, despite wool volume reducing nationally.
The company says its unencumbered by debt and its end-of-year cash balance was $31.6 million, down $7.7 million from the previous year end, as it invested heavily to lift inventory levels $8.2 million to $29.3 million - in a move designed to rebuild trade confidence and ensure continuity of supply.
Bremworth chief executive Greg Smith says the company is emerging from a period of significant transformation.
“This financial year saw our sales severely constrained as we brought our new supply chain online - providing the ability to scale our operations significantly.
“As well as increasing stock levels overall, we invested in rebuilding inventory of our top-selling lines to meet the demand from our trans-Tasman customers and revised our inventory strategy to increase yarn stock.
“This has enhanced our ability to rapidly adapt to consumer demand, reducing customer wait times from months to days.
“With the inroads we have made with the hybrid supply chain and the steps underway to restore our unique yarn-making capability at Napier, we have the opportunity to realise the demand that was previously unmet and expand our reach into export markets such as the high-volume, multi-level residential apartments.”
Smith points out that there are dozens of these projects in every city of Australia right now. Bremworth has launched a full-time commercial team in that market dedicated to growing this side of the business.
“Once the hybrid supply model reaches its full potential we will have the capacity to double production of carpet to grow additional sales with existing and new channel partners in key markets.
“Over the past year we have substantially removed yarn-making capacity constraints that had created a bottleneck in our production and we have commercialised four new ranges to launch in FY25.
“We are looking forward to a new phase of sustained growth,” he says.
Smith says the company is continuing to focus on rebuilding the carpet business to pre-cyclone capability, with work including ongoing enhancements to the hybrid supply chain and accelerating the staged reinstatement of yarn-making equipment at Napier.
“The Napier plant made unique yarns that are hard to recreate anywhere in the world, and the staged reinstatement of machinery will enable Bremworth to scale production of these distinctive ranges, consistently producing high quality and unique yarns,” he says.
The recent East Coast Farming Expo, held over two days at Wairoa, offered an insight into the current state of agriculture on the east of the North Island, at a time when the locals are remembering the second anniversary of Cyclone Gabrielle.
Agribusiness leader Rob Hewett is the new chair of listed carpet maker Bremworth.
With wool prices steadily declining and shearing costs on the rise, a Waikato couple began looking for a solution for wool from their 80ha farm.
Wools of New Zealand will soon launch the international version of an online global wool marketplace designed to bring farmers and manufacturers closer together.
Listed carpet maker Bremworth says it’s preparing to call a special meeting requested by a group of disgruntled shareholders.
Rural retailer Farmlands has launched a new casual clothing range available across 42 stores nationwide and through its online store.
Federated Farmers says the health and safety changes announced this week by the Government represent the start of overdue reforms.
The Government is calling on rural New Zealanders to share their views on proposed regulations designed to improve the management of farm plastic waste.
For many urban New Zealanders, stepping into Pāmu’s Pinta dairy farm near Taupo last month was the first time they had had the chance to experience farm life up close.
After tasting 240 New Zealand made cheeses, judges have bestowed medals upon 199 of the entries.
Bay of Plenty’s top share farmers Andre and Natalie Meier are no strangers to the New Zealand Dairy Industry Awards winning circle.
OPINION: At last, a serious effort to better connect farmers and scientists.
OPINION: If you believe Maori Party president John Tamihere’s claim that “nothing dodgy” occurred at Manurewa Marae during the last…
