Steel & Tube Holdings, New Zealand recorded a 127pc increase in profits in FY21 due to a low base effect because of the COVID-19 pandemic last year, according to reports.
The steelmaker reported a net profit of $16.1mn, up 127pc driven by a rebound in the economy and increasing demand for steel in FY21.
Last year the company had faced a loss of $60mn, after the COVID-19 outbreak and non-trading adjustments worth $58.1mn.
Revenue for FY21 in the period ending June gained 15pc from the prior financial year to $480mn while earnings before interest and tax improved significantly to $21.8mn, up 138pc.
The company attributes this growth to the constant efforts of employees and the successful execution of strategic initiatives delivering growth, underpinned by positive economic activity. High sale volumes and recovering margins also boosted results in FY21.
Currently the country is under alert level 4 restrictions, but the company believes, economic activities are only delayed during these situations and is likely to be on a strong recovery once business resumes.
The company’s outlook for the FY2022 is even stronger on a long-term view and the steelmaker is establishing policies and business strategies that look beyond the next quarter.
With structural cost reductions, the company was able to become debt free this fiscal year and had $25mn in net cash by the end of the year. The company expects this to help it grow faster once business fully resumes in the country.