Pental Ltd refines its FY22 vision with a five-pillar strategy
â€œFiscal 21 has been a successful year for Pental, driven by our focus on our core brands, product innovation, improving manufacturing efficiency and continuing to seize opportunities to develop our company, â€said the president.
Pental Ltd (ASX: PTL) looked to the future at its annual general meeting, signaling investors that it expects to achieve five key priorities in fiscal 22.
Consumer Staples Stock, which operates a portfolio of household cleaning products, comes out of the back of a strengthened after-tax dividend and net income as COVID-19 has boosted demand for anti-chemicals. -germs.
And Pental hopes to keep pace in FY 22 as it accelerates its marketing strategy and introduces new products to its physical and e-commerce markets.
As the current fiscal year is in full swing, Pental’s message to shareholders today was that he would continue to build on last year’s momentum with new partnerships and a focus on sustainability.
Pental’s strategy during FY22 is based on five key pillars.
Building on the Australian presence
Speaking at the company’s AGM, President Mark Hardgrave said: â€œPental is a proud Australian company that manufactures a wide range of iconic brands, with essentials in Australia, New Zealand and in Asia.
â€œWe remain one of the very few major vertically integrated suppliers of trusted personal, household and commercial cleaning brands with Australian manufacture and Australasian distribution.
â€œWe also now have a significant presence in e-commerce with the latest acquisition of Hampers with Bite.
â€œOur vision is to be a leading supplier of shelf-life products in our chosen markets, built around a reputation for quality, innovation and sustainability to the satisfaction of our customers.
â€œAt the same time, we recognize and prioritize the importance of increasing our shareholder value. “
The year that was
Summarizing the company’s performance in fiscal 2021, the president of Pental pointed out a series of financial tailwinds.
Hardgrave told investors, â€œFiscal 21 has been a successful year for Pental, driven by our focus on our core brands, product innovation, improving manufacturing efficiency and continuing to seizing opportunities to develop our business.
â€œPental maintained good momentum throughout FY21 after experiencing increased demand for our potent antibacterial products during the first wave of the COVID-19 pandemic. “
The cleaning products business reported net sales of $ 125 million for the year – a result Hardgrave describes as “an extraordinarily strong FY20”.
Pental’s underlying after-tax net profit climbed nearly 12% during the year to $ 5.6 million.
Hardgrave explained, â€œWe achieved this result on the basis of a strong contribution to the fire starters and cleaning product margins as well as tight cost control, as we focused on growing our brands. keys both before and after the changes to our Duracell distribution agreement in May 2021. â€
The strong financial performance of the company supported a final fully paid dividend of 1.6 cents, bringing shareholder payouts for the year to 2.6 cents per share.
Hardgrave noted: â€œExcluding the special dividend paid in FY20, this represents an 18% increase in our ordinary dividends paid during the year, with a payout ratio of 63.2% of net profit after. taxes.
â€œWe are excited to provide this to our shareholders, especially given the uncertain market conditions many companies face as the impacts of COVID continued throughout the year. “
Recent developments and key victories
Pental also recalled a series of landmark achievements that continue to accelerate momentum in fiscal 2022.
First, the company signed an exclusive bleach distribution agreement with a large hardware retailer.
Pental’s White King line of bleach rolled to store shelves in September 2021, marking one of the first major achievements of the new fiscal year.
Prior to that, two new fire starter variants from the ASX-lister’s Jiffy line hit the grocery giants in July this year, solidifying Pental’s reign as the number one lighter supplier. fire among major retailers.
The company has also tweaked its line of White King toiletry gels and plans to build on its momentum with half-price promotions throughout the year.
Pental’s Softly laundry detergent lineup is also expanding – two new variants are being rolled out to major retailers, while three new options will be presented for FY22.
Speaking on the developments, Hardgrave said, â€œThis continues the company’s long-standing strength in developing a product pipeline with unique points of difference.
â€œBy leveraging our production force, we also continue to explore and expand Pental’s offering of contract-manufactured products, including private label products for major retailers. “
What’s to come?
In FY22, Pental will focus on marketing its growing line of cleaning and household chemicals, as well as expanding its e-commerce business.
New value packs and product packs are about to hit physical and digital shelves throughout the year
The company also finalized a key e-commerce acquisition in September, bringing gift specialist Hampers With Bite into the fold.
With this purchase, Pental expects to be able to strengthen its scale and expertise in e-commerce through fiscal 2022.
Pental plans to maintain strong momentum over the next seven months by implementing five strategic priorities:
- Drive sales growth through key brands;
- Develop new products and sales channels;
- New projects and acquisitions;
- Expand export markets; and
- Continuous improvements in manufacturing.
Hardgrave concluded: â€œI would like to thank our employees, customers and suppliers for their dedication to Pental and their support of our strong brands.
â€œI would also like to thank my fellow directors for their collective efforts during the year and thank our shareholders for their continued commitment and loyalty.
â€œOur company remains solidly positioned to generate continued profitable growth with a healthy balance sheet, strong and growing brand awareness, and an export and e-commerce strategy that offers significant upside potential.
“We look forward to exploring and seizing new opportunities to accelerate our growth over the coming year and beyond …”