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Spicers increases sales and profits

Wednesday, 29 August 2018
By Wayne Robinson

Sales rise: Spicers

The country’s second biggest paper merchant Spicers has arrested a fall in sales and achieved increases in both its sales and profits over the last financial year, with both print and packaging, and sign and display, on the up.

Net sales revenue rose by 0.9 per cent to $384m, with Print & Packaging up by half a per cent to $304.7m, while Sign & Display rose by 2.6 per cent to $79.3m.

The Australian EBIT was up by 80 per cent at $4.2m, which the company says was due to improved trading in key product categories.

Australian sales were up to $204.4m from $201.8m, although this is still behind the 2016 sales of $211m. Spices does not provide a breakdown between commercial print and packaging in its figures.

Spicers achieved a $2.2m cost saving thanks to corporate restructuring, although it took a $1.9m hit on necessary building cladding projects.

New Zealand saw an EBIT rise of 1.2 per cent to $7.4m in constant currency terms. New Zealand sales though took a hit, down from $101m to $93.4m.

The the Asian EBIT of $2.2m was an 18 per cent increase on the prior year on sales that rose by ten per cent to $86.6m from $78m.

According to David Martin, CEO of Spicers, the uptick in almost all figures was due to Spicers delivering on its  priorities. He says, “Our focus on customer and market engagement has driven improved trading results across our key product revenue streams, particularly in Australia and Asia. Our New Zealand business continues to deliver solid results in challenging market conditions.”

Spicers is now three years on from its exit from its disastrous European adventure, which saw it rack up losses of $300m under its old PaperlinX brand. The company closed or sold all its business there, as well as those in Canada, and has since focused on Australia, New Zealand and Asia.

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