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Salmat revenue down $11.1m with company blaming product and services rationalisation

Marketing services company Salmat has reported earnings of $13.4m for the six months ended December 31, 45.7% up on the six months at the end of 2015, however revenue was down 4.7%.

 

In its financial results announced to the market today, Salmat reported revenue of $224.5m, down 4.7% on the same period the year before with the company saying it “was $11.1m down on 1H16 as new business is not yet fully compensating for the decline in revenue following the product and services rationalisation”.

The company also blamed the revenue decline on reduced discretionary spend and expired contracts.

Craig Dower, Salmat CEO, said: “The business transformation of the past two years has effectively focussed our attention on areas of market leadership, simplified every aspect of our operations and built the foundations for growth. Now more than ever, Salmat is well placed to take advantage of market opportunities, as we aim to drive further profitable revenue.

“Revenue reduced for a period due to the product and services rationalisation but has grown again in this half. EBTIDA [earnings before tax, interest, depreciation and amortisation] has increased period on period since we started the transformation. We are maintaining a focus on costs and targeting additional business to continue this course.

“While we have made good progress with the transformation, external headwinds have persisted. Given the changing retail landscape and recent print industry consolidation, Salmat is currently considering a number of strategic options to help drive profitable growth and maximise shareholder value. We will work through these options during the second half of FY17.”

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