Shriro Holdings (ASX: SHM) posted a 7.5% revenue increase to $111 million for FY26, alongside a 44% jump in net profit after tax to $10.8 million. The company declared a fully franked final dividend and completed substantial share buy-backs, while guiding FY27 EBITDA to $12–15 million amid increased marketing spend.
- 7.5% revenue growth to $111 million
- 44% rise in net profit after tax to $10.8 million
- Completed $11.3 million in share buy-backs at $0.81 per share
- Declared final fully franked dividend of 1.0 cent per share
- FY27 EBITDA guidance set between $12 million and $15 million
Strong Profit Growth Driven by Operational Efficiency and Tax Benefits
Shriro Holdings Limited (ASX:SHM) reported a solid set of full-year results for the 12 months ended 30 June 2026, with revenue climbing 7.5% to $111 million. More strikingly, net profit after tax surged 44% to $10.8 million, boosted by improved operating efficiency, a Seasonal Division restructure, and a one-off $0.9 million tax benefit from prior US losses. EBITDA rose 21.6% to $18.6 million, comfortably exceeding market guidance.
The company’s earnings per share soared 75% to 14.7 cents, reflecting both the profit lift and the impact of share buy-backs completed over FY25 and FY26, which reduced the share count to 63.9 million. Shriro remains debt free with net cash of $9.1 million at year-end, rising to $17.3 million by 31 July 2026.
Revenue Growth Fueled by Calculators and Seasonal Products, Despite Market Headwinds
Revenue growth was primarily driven by higher calculator sales and a rebound in seasonal products, including barbeques and pizza ovens. The Calculator division benefited from a timing boost after a school distribution contract expired, with the reseller front-loading inventory purchases in FY26. However, this is expected to moderate FY27 sales and earnings.
The Seasonal division, which had struggled with excess market inventory and subdued consumer demand post-COVID, delivered the anticipated recovery. The new pizza oven range launched during FY26 was well received, contributing to growth across multiple markets. However, delays in launching the Everdure Lagoon BBQ range due to compliance issues held back expected export growth, with management forecasting a stronger contribution from this range in FY27.
Watches faced ongoing challenges from higher interest rates and cost-of-living pressures, compounded by Shriro’s strategic decision to stop supplying a major online retailer to support bricks-and-mortar partners, which temporarily impacted sales during the retailer’s inventory sell-down. Despite this, watch sales remained broadly flat.
Strategic Exit from New Zealand Plumbing Portfolio and Cost Controls
Shriro’s New Zealand operations saw revenue growth despite tough market conditions. However, the plumbing division was hit by the transition to lead-free products, leading to increased discounting in a low-growth market. Following a strategic review, Shriro exited its Lixil distribution agreement, including American Standard and Grohe brands, on 30 June 2026. The exit, which saw most costs recognised in FY26, is expected to improve underlying profitability by about $0.4 million annually from FY27.
Operating expenses were tightly controlled, rising a mere 0.3% to $31.3 million, below inflation, aided by the Seasonal Division restructure and reduced IT costs following the completion of a three-year ERP implementation project.
Capital Management: Dividends and Share Buy-Backs Continue
Shriro declared a fully franked final dividend of 1.0 cent per share, adding to the interim and special dividends paid during the year, bringing total FY26 dividends to 6.0 cents per share fully franked. The Board continues to target dividend payouts of 20% to 30% of net profit after tax, balancing shareholder returns with capital needs.
The company completed two off-market equal access share buy-backs at $0.81 per share, repurchasing and cancelling nearly 14 million shares for $11.3 million in total. This follows previous buy-backs, with a cumulative $34.5 million returned to shareholders via dividends and buy-backs over the past two years.
FY27 Outlook: EBITDA Guidance Reflects Increased Marketing and Normalising Sales
Looking ahead, Shriro expects FY27 EBITDA in the range of $12 million to $15 million. The guidance factors in increased promotional and advertising spend to support the launch of the Everdure Lagoon BBQ range, alongside the normalisation of calculator sales following the FY26 timing benefit.
Management remains focused on growing the Watches and BBQ export businesses, improving operational efficiency, and enhancing shareholder returns. The Board continues to evaluate capital management initiatives in light of the company’s strong balance sheet and prevailing market conditions.
Shriro’s extensive brand portfolio includes company-owned names such as Everdure, Robinhood, Omega, and Omega Altise, alongside third-party brands like Casio, Pioneer, AlphaTheta, and Manhattan Portage. The group operates across Australia, New Zealand, the United States, and China, exporting products to 27 countries.
Bottom Line?
Shriro’s FY26 results reflect a successful turnaround with strong profit growth and disciplined capital returns, but FY27 earnings will face headwinds from normalising sales and increased marketing investment.
Questions in the middle?
- How will the Everdure Lagoon BBQ range impact revenue and margins once fully launched in FY27?
- What are the risks and opportunities in the calculator market given increased competition and margin pressures?
- How might Shriro’s capital management strategy evolve amid strong cash reserves and ongoing buy-backs?