Shriro Holdings reported solid half-year growth with revenue up 8.4% and NPAT rising 10%, underpinned by strong BBQ and kitchen appliance sales. The company reaffirmed its EBITDA guidance and announced a $15 million off-market share buy-back for FY26.
- Revenue increased 8.4% to $60.6 million
- Net profit after tax rose 10% to $6.6 million
- Earnings per share surged 37.1% aided by $20 million in share buy-backs
- Completed ERP implementation with ongoing IT cost optimisation
- Plans $15 million off-market share buy-back and shifts dividend focus to capital growth
Half-Year Financial Performance
Shriro Holdings Ltd (ASX: SHM) has delivered a robust half-year result for the six months ending 31 December 2025, with revenue climbing 8.4% to $60.6 million. This growth was primarily driven by strong sales in BBQ products and New Zealand kitchen appliances, offsetting some softness in plumbing brands. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 5.6% to $11.4 million, while net profit after tax (NPAT) rose 10% to $6.6 million.
Notably, earnings per share (EPS) jumped 37.1%, a significant uplift largely attributable to the company’s aggressive capital management strategy, including $20 million in share buy-backs during the period. Despite paying $3.9 million in dividends, Shriro’s cash position declined to $9.7 million, reflecting these capital returns.
Operational Highlights and Market Dynamics
In Australia, revenue grew 7.2%, buoyed by the seasonal division and BBQ distribution meeting management’s expectations. New Zealand sales edged up 1.9% despite subdued consumer conditions, though growth was constrained by plumbing brands struggling to secure core retail ranging. Internationally, revenue more than doubled, primarily due to discounted stock sales to a new US distributor, though the bulk of international sales typically occur in the second half of the financial year aligned with peak BBQ season in the US and Europe.
Shriro completed its ERP system implementation during the half, with ongoing optimisation expected to reduce IT costs further. The company is also conducting a comprehensive IT cost review to identify additional efficiencies. However, uncertainty remains around potential tariff changes on goods exported from China to the US, which could impact future orders.
Strategic Outlook and Capital Management
Looking ahead, Shriro reaffirmed its EBITDA guidance of exceeding $15.3 million for FY26. The company plans a $15 million off-market share buy-back in the second half of the year at $0.81 per share, as approved at the 2025 AGM. This move is expected to further enhance EPS by reducing the number of shares on issue.
Shriro’s growth strategy combines organic expansion; through new product releases and e-commerce investment; with targeted acquisitions and brand additions. The company has appointed a dedicated executive to identify new brands for the Australasian market and is focusing on consolidating European distributors and expanding into untapped regions. Dividends will be deprioritised going forward to fund capital growth initiatives.
Overall, Shriro’s half-year results reflect a company navigating a complex global environment with a clear focus on operational efficiency, capital discipline, and strategic growth. Investors will be watching closely how tariff developments and acquisition opportunities unfold in the coming months.
Bottom Line?
Shriro’s disciplined capital management and growth focus set the stage for a pivotal second half amid global uncertainties.
Questions in the middle?
- How will potential China-US tariff changes impact Shriro’s international sales momentum?
- What acquisition targets might Shriro pursue to accelerate growth in FY26 and beyond?
- To what extent will ongoing IT cost optimisations improve margins in the second half?