Photo: Bremworth
Cyclone insurance payouts have substantially lifted carpet company Bremworth's profit.
It has just reported an $11 million profit for the year to June - up from $2.2m the year before.
But taking off the one-off factor, the company reported a loss of $2.4m for the 2023 financial year due to a disrupted supply chain following Cyclone Gabrielle, a constrained construction sector and a retail and economic slowdown.
Last year it made a net profit after tax of $1.7m.
Annual revenue was down six percent to $89.6m, revenue from the company's wool buying division was down five percent and carpet sales have fallen by three percent to $70.2m.
However, revenue from Bremworth's higher-margin rug business was up 45 percent.
Chief executive Greg Smith said as anticipated, the impact of the cyclone had featured noticeably in this year's results but it was pleasing revenue remained relatively stable, despite the disruption caused by the cyclone.
Bremworth's Awatoto plant remains closed after the cyclone flooded it causing significant damage.
Smith said Bremworth had $271.3m in material damage and business interruption insurance cover for the Napier operation.
"An independent assessment has placed the estimated cost of remediation of buildings and plant and equipment at between $112.7m and $162m - so far the company has been paid out $35.5m of progress payouts and is anticipating significant further payouts.
"While this has undoubtedly been the most challenging event in the company's long history, we will come through it a more resilient and adaptable organisation."
If there is a silver lining in this, the cash reserves Bremworth is accumulating due to the insurance payments provide us with considerable options for growth and further investments, Smith said.