26 Nov 2014

Methven first half profit rises 3.4%

9:18 am on 26 November 2014

Methven's first-half net profit rose 3.4 percent over the year earlier, which it says is satisfactory, considering last year's result reflected a significant overstocking by key customers.

The shower and tap manufacturer made $2.898 million in the six months ending with September, against revenue of $48.751 million, which was down slightly from the year earlier.

Methven chief executive David Banfield said the company still expected its annual profit to rise between 15 and 20 percent over the previous year, which was at the higher end of its guidance.

"Last year's sales at the same time were boosted by selling - high selling - to some of our customers," he said.

"Overall, we've been focusing through this first half on making sure the business is fit for the future ... Now what we do, is we monitor what we're selling into those customers, and what they're selling into their customers, to ensure we don't repeat the issue."

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