Automotive leather manufacturing company Schaffer Corporation Limited has reported 1H23 statutory net profit after tax (NPAT) of $5.1 million, reflecting a difficult first half for the Automotive Leather Division.
The ASX-listed company said the figures were impacted by various challenges including the continued global semiconductor chip shortage, the delayed launch of a major renewed program in Europe, and extreme currency movements.
The Automotive Leather division’s future prospects are still bright as renewed key contracts and the previously won programs with Mercedes and Audi should help Europe grow in the future, according to the company.
Given that the shortage of semiconductor chips is beginning to ease, SFC anticipates that revenue and profitability for the second half will be greater than for the first.
Delta, a subsidiary of Schaffer, reported an NPAT of $0.3 million, returning to profitability, compared to a loss of $0.3 million in the same period last year.
Moreover, sales increased by 67 per cent, reflecting the impact of project delays in 1H22.
Delta continued to be impacted by engineering complexity on a large project, which negatively impacted profit margins and cash flow.
NPAT1 of $1.8 million was contributed by Group Investments, which had a pre-tax net equity value of $185.2 million, or $13.59 per share.
This contrasts with the value of $187.7 million or $13.78 per share as of June 2022.
John Schaffer AM, chairman of Schaffer, said the fundamental assets and valuation of the company are increasingly made up of group investments.
“We continue to invest opportunistically with the objective of maximising shareholder value over the medium and long-term,” the chairman noted.
The Schaffer Board has also approved a fully franked final dividend of $0.45 per share with a record date of 10 March 2023.
The dividend will be paid on 17 March 2023.
The results of Schaffer Corporation Limited are reported in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board.
