Shriro Holdings reported a 13.6% revenue decline to $103.3 million in FY25 but delivered a 5.5% rise in EBITDA and an 8.7% increase in net profit after tax. The company completed a $15 million share buy-back and deferred its final dividend as it explores alternative capital uses.
- Revenue down 13.6% to $103.3 million
- EBITDA up 5.5% to $15.3 million
- Net profit after tax increased 8.7% to $7.5 million
- Completed $15 million share buy-back representing 19.2% of issued capital
- Final dividend withheld pending capital allocation decision
Financial Performance Amid Transition
Shriro Holdings Limited closed its 2025 financial year with mixed results, reflecting both the challenges and strategic shifts underway. Revenue fell 13.6% year-on-year to $103.3 million, primarily due to softer seasonal product sales and a transition from wholesaling to importing barbeques in Australia. Despite this top-line contraction, the company managed to lift its EBITDA by 5.5% to $15.3 million and net profit after tax by 8.7% to $7.5 million, underscoring effective cost management and operational efficiencies.
The company’s gross margin improved slightly to 45.0%, aided by a leaner cost base following the exit from lower-return operations and restructuring efforts completed over the past two years. Operating expenses declined 18.5%, reflecting these structural changes and the implementation of a new Enterprise Resource Planning (ERP) system, which incurred $1.4 million in costs during FY25 but is expected to reduce IT expenses going forward.
Capital Management and Shareholder Returns
In a significant capital management move, Shriro completed an off-market equal access share buy-back in February 2025, repurchasing and cancelling 18.5 million shares; representing 19.2% of its issued capital; at $0.81 per share, for a total of $15 million. This buy-back, combined with dividends and previous capital returns, has returned $45.6 million to shareholders over the last two years.
However, the Board has resolved not to pay a final dividend for FY25, after declaring a fully franked interim dividend of 2.0 cents per share earlier in the year. This decision reflects ongoing consideration of alternative uses for the cash, signaling a strategic pivot in capital allocation as the company seeks to balance shareholder returns with investment in growth opportunities.
Strategic Restructuring and Growth Initiatives
FY25 marked the completion of Shriro’s restructuring phase, including exiting the Appliances business and reshaping the Seasonal business model to be more capital-light and focused on product development and marketing. The appointment of Blaze Grills as the distributor for the U.S. Seasonal business is expected to reduce operating costs and improve profitability in FY26, although growth remains sensitive to external factors such as U.S.-China tariff policies.
Shriro is also expanding its brand portfolio, notably securing exclusive distribution rights for Manhattan Portage in Australia and New Zealand, set to launch in September 2025. The company is prioritizing the acquisition and faster market entry of third-party brands to diversify and strengthen its product offering.
Outlook and Operational Highlights
Looking ahead, Shriro anticipates EBITDA growth in FY26, supported by new product releases in the Seasonal segment and ongoing ERP system optimizations that are expected to reduce IT costs by $400,000. The company maintains a strong balance sheet with net assets of $37.2 million and net cash of $13.9 million, providing flexibility for future investments or shareholder returns.
Executive remuneration remains closely tied to company performance, with short-term incentives linked to EBITDA targets and long-term incentives based on earnings per share growth. Notably, no short-term incentives were paid for FY25 as targets were not met, reflecting a disciplined approach to performance management.
Bottom Line?
Shriro’s FY25 results set the stage for growth, but investors will watch closely how the company deploys its excess cash and navigates external market pressures.
Questions in the middle?
- What specific capital allocation options is the Board considering instead of a final dividend?
- How will the new U.S. distributor impact revenue and profitability in the Seasonal business amid tariff uncertainties?
- What is the expected timeline and impact of new third-party brand launches like Manhattan Portage on overall revenue?