Codan hit by disruptions in Africa market, exiting Russia

Electronics manufacturer Codan’s FY23 results were buoyed by strong gains in its communications businesses partially offsetting disruptions to its African and exited Russian markets for its Minelab metal detection equipment.

The Adelaide company reported full year underlying net profit after tax of $65 million, down 35 percent from the previous year, on group revenue down 10 percent on FY22.

The company’s tactical and emergency response communications division Zetron both achieved strong growth, with revenue up 14 percent to $274 million and segment profit margin of 25 percent, up from 21 percent in FY22.

Success in communications reflected a strategic shift to enter military, law enforcement, public safety and unmanned systems markets. $20 million in revenue related to a single large military contract.

This resulted in an increased share of communications revenues being derived from developed world markets and government customers.

Codan’s communications businesses enter FY24 with an order book of $163 million, up nine percent on the previous corresponding period.

The company’s Minelab metal detection business reported revenues of $172 million compared to $262 million in FY22.

The drop was the result of disruptions to its markets in Northeastern Africa and its exited Russian recreational market.

The company delivered a stronger second half year across all its markets, and segment profit margin was stable compared to H1 at 32 percent.

Further reading:
Codan buys US communications business, reveals Africa sales challenges
Browse @AuManufacturing’s coverage of Codan here.

Picture: Codan