McPHERSON’S LIMITED
ANNUAL REPORT 2015
9
OUR BUSINESS
McPherson’s Limited designs, sources
and markets products under four
broad categories:
Health & Beauty,
with brands including Manicare, Lady
Jayne, Swisspers, Revitanail,
Dr. LeWinn’s, A’kin and Al’chemy;
Home Appliances, with brands
including Euromaid, Baumatic, Lemair
and Venini;
Household Consumables
under the Multix brand; and
Impulse
Merchandising under the Home Living
brand.
Additionally the
Housewares Division
markets and distributes products such
as cutlery, knives, bakeware and
kitchen accessories under brands such
as Wiltshire, Stanley Rogers, Furi and
Luigi Bormioli. McPherson’s has a 49%
stake in this division with the
remaining 51% owned by the
Fackelmann Group. Founded in
Germany in 1948, the Fackelmann
Group is a global manufacturer and
distributor of kitchen, baking, home,
leisure and bathroom products.
Since the demerger of the Group’s
printing business in FY2012,
McPherson’s has embarked on a
successful transformation. Through
strategic acquisitions and divestments,
as well as product innovation, the
management team has established a
portfolio of trusted and profitable
brands across a diverse, multi-channel
award, together with the successful
launch of Gucci Bamboo for women
clearly illustrates the Group’s
capability in this area, instilling
confidence in the year ahead.
DIVESTMENT DURING THE
YEAR
On 31 October 2014, McPherson’s
divested 51% of its stake in the
Housewares business in Australia,
Singapore and Hong Kong to the
Facklemann Group. Additionally on 1
July 2015, McPherson’s divested 51% of
its stake in the Housewares business in
New Zealand to the Fackelmann
Group.
Both McPherson’s and Fackelmann are
pleased with the performance of the
new venture, with its contribution on
an annualised basis expected to
increase in FY2016.
RESULTS FOR THE YEAR*
McPherson’s sales revenue was $349.1
million net of customer allowances,
1.0% below the previous year’s $352.7
million*. Sales revenue on a
comparable, like-for-like basis i.e.
excluding Housewares and the impact
of acquisitions made in FY2014 and
FY2015, was $10.7 million or 4.3%
above FY2014. This increase was
primarily due to the increased sales of
Home Appliance products and private
label Household Consumables
products.
REVIEW OF OPERATIONS
TRANSFORMING
THROUGH
DIVERSIFICATION
REDUCES RISK
Lessened exposure to foreign currency plus a more profitable channel and
customer mix are part of our strategy for increasing shareholder value.
customer base in Australia, New
Zealand and Asia.
Manufacturing is outsourced to
various suppliers, predominantly in
Asia. McPherson’s maintains a strong
presence in Hong Kong and mainland
China focused on sourcing and quality
assurance.
ACQUISITIONS DURING THE
YEAR
Health & Beauty
On 1 December 2014, McPherson’s
acquired the natural skincare brand
A’kin to complement its existing
skincare range. Additionally,
McPherson’s acquired the natural hair
care brand Al’chemy. Distribution of
these brands is primarily through the
Australian pharmacy channel.
The addition of these natural botanical
products together with the Trilogy
range of natural skincare products has
further diversified McPherson’s
channel exposure.
NEW AGENCIES
ESTABLISHED DURING THE
YEAR
On 1 August 2014, McPherson’s was
appointed Australian distributor for
Proctor & Gamble’s fine fragrance
brands – Gucci, Dolce & Gabbana and
Hugo Boss – excluding duty free
stores. McPherson’s was recently
awarded Best International Launch for
the new Dolce & Gabbana Intenso fine
fragrance for men. This prestigious
*
FY2014 figures have been restated to reflect a change with respect to the timing of recognising revenue and promotional discounts. The impact has been to reduce
sales revenue $0.7m, increase the loss before tax $0.7m, and increase the loss after tax $0.5m.