Metro Performance Glass posts full year loss
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Covid restrictions, rising costs and international shipping disruptions has led to the glass manufacturer Metro Performance Glass posting a full-year loss.
Chief executive Simon Mander said Metroglass achieved “solid sales” in New Zealand either side of lockdown, and its Australian division delivered 11 percent revenue growth.
“However, the lockdown in New Zealand, international shipping disruptions and higher input costs have materially reduced profitability,” he said.
The company said it managed Covid-19 disruptions and other pressures well overall, but came at the expense of profitability.
Key numbers for the 12 months ended March compared to a year ago:
- Net loss $0.5m vs $8.1m profit
- Revenue $236.1m vs $232.3m
- Net debt $52.3m vs $48m
- Underlying earnings $5.9m vs $17.2m
The increase in net debt reflected the increase in safety stock, the higher stock cost and targeted capital investments for increases in capability, capacity and quality, Metroglass said.
New Zealand revenue fell 1 percent, with the construction sector remaining busy, but underlying earnings took a hit due to supply chain disruptions and rising costs.
“The business has responded to the ongoing inflationary cost pressures through market pricing adjustments that will flow into FY23 financial year.
“Our focus remains firmly on the future. Changes to the building insulation regulations to be introduced in 2022 will almost universally require the use of LowE (Low Emissivity) glass in windows,” Mander said.
Metroglass said it has made significant investments in LowE technology.
Across the Tasman, transforming its Australian Glass Group into a speciality double glazing business continued momentum, it said.
“Market pricing in Australia has trended positively, in-part reflecting the cost inflation pressures but also in recognition of the increasing value of glass throughout the industry,” Mander said.
Metroglass said it was confident of a “solid and steady” flow of work for the rest of its 2023 year, due to demand for new residential construction in New Zealand.
However, Covid-19, supply chain disruptions, labour shortages and inflation meant there would be uncertainty in the short to medium term, it said.
Due to the uncertainty, the company said it would focus on gross profit improvement.