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Pental’s Hampers with Bite acquisition already paying off

(Source: Supplied)

Home and hygiene product maker Pental has reported strong performance across its company portfolio in its first-half results. 

For the half year to December 26, the net profit after tax was estimated at $5.272 million, 17 per cent above the guidance the company issued on December 16. 

Following a capital raise of $5.2 million, the group acquired Hampers with Bite, a Melbourne based gifting specialist, on September 1. That business’ pre-tax earnings reached $6.29 million under Pental’s ownership, with strong pre-Christmas sales 

The company also invested in HWB’s marketing initiatives resulting in a seamless performance from the brand from both B2B and B2C channels.

Group MD, Charlie McLeish welcomed the growth of the business in the past few years especially HWB under Pental’s ownership. 

“In the macro environment, e-commerce sales are growing at a much faster rate than traditional brick and mortar retail stores. The high calibre team at HWB not only empowers us to achieve growth through the hampers business but also equips us to gain scale outside of our traditional markets with our iconic brands.”

Pental’s non-grocery channels were affected in the first half of the financial year due to multiple Covid-19 outbreaks and lockdowns across Victoria and NSW. The brand’s product supply into major hardware stores has also been delayed due to Covid related reasons. As a result, the company’s owned brand sales in Australia were affected by 14.9 per cent in the first quarter. 

Net sales in New Zealand increased by 12.1 per cent year on year. The company’s expansion into Asia has been impacted due to Covid and the tense political environment between Australia and China.

The company has also been affected by rising input costs of approximately $1.5 million in the first half due to a significant rise in the price of commodities used in manufacturing. It is in the process of implementing a price recovery strategy that includes the substitution of raw materials where possible. 

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