Manufacturing results news briefs – stories you might have missed

Austin powers ahead on benefits from revamped manufacturing

Perth mining equipment manufacturer Austin Engineering has reported an EBITDA of $31 million for FY23 on revenue up 27 percent on the previous year to $258 million. Operating cash flow for the year was $15.8 million, up 236 percent, with the company ending the year with an order book of $143.7 million. Austin has grown strongly since the launch of an Austin 2.0 programme in FY21 when EBITDA was $21.4 million. The company reinvested in its plants in Perth and Indonesia, reorganised its manufacturing workflows, redesigned product for manufacture, introduced automated welding systems and moved to a four-day work week. Return on equity has risen from 10.2 percent to 16 percent in FY23.

Lark sales fall, as Asian whiskey markets beckon

Tasmanian whiskey distiller Lark Distilling reported FY23 net sales down $3.3 million or 16 percent from the previous financial year. Lark CEO Sash Sharma said FY23 was challenging for the company in terms of headline financial results, impacted by high one-off sales in Q4 FY22. Normalised for the windfall sales the company delivered organic growth of 15 percent. Gross margins were up two percent to 68.9 per cent, driven by favourable met sales value per litre achieved of $280. The company, which ended the year with 2.38 million litres under maturation, reported a normalised EBITDA loss of $2.0 million. However at June 30 the company’s cash balance was $7.2 million. Sharma said: “Importantly our unique core whiskey products and Lark’s reputation for quality and craftsmanship were further strengthened as evidenced by our continued success in domestic and international awards.”

Star Combo Pharma grows on contract manufacturing

Star Combo Pharma has continued its strong growth in FY23 as it moves to become a contract manufacturer of healthcare and skincare products. The Sydney company reported 28 percent revenue growth to $20.8 million however profit was hit by a $4.4 million write down of the intangible value of its ailing retain businesses. While retail losses were cut in the year, a retail loss dragged the company down to an operating profit for the year of$958,000. The move to contract manufacturing saw record manufacturing output for the year, building on strengthened relationships with customer Terry White Chemmart and growing vitamin sales. Star Combo’s plant at Smithfield, Sydney suffered a fire in one of its three buildings in the year, which did not interrupt manufacturing. However the company is awaiting the result of an insurance claim, and booked an asset write down of $4.4 million.

DroneShield rides insecurity to boost sales

Drone detection and countermeasure manufacturer DroneShield has benefitted from new product launches and global insecurity to boost sales revenue by 214 percent to $11.5 million in FY23. The company reported a loss of $2.9 million, down 40 percent on the previous year. However the company’s second half sales were three times that of the previous corresponding period, with DroneShield ending the year with a record contract order backlog of $62 million. During the year the company launched its latest DroneGun Mk4, and enhanced CroneSentry and DroneLocator systems. According to the company: “DroneShield continues to be in a highly favourable environment, with both the counterdrone industry rapidly growing and more generally defence and security budgets rising.”

Lynas Rare Earths reports bumper year

Perth rare earths producer Lynas Rare Earths has reported a leap in sales and profits for FY23, and continued progress on the construction of a new part-processing facility in Kalgoorlie, WA. The company reported EBIT and net profit after tax of $540 million on revenue up from $739.3 million in FY22 to $920 million. Lynas CEO and Managing Director Amanda Lacaze said: “FY23 was another very productive year for Lynas. Operational performance was particularly strong with record concentrate production and record NdPr production achieved in the second half. EBITDA…was 51 percent of revenue with NPAT at 42 percent of revenue.” Lynas invested $595 million in capital projects during the year. Lacaze said final construction activities were underway at Kalgoorlie and final commissioning activity was underway.

Trajan continues strong growth trajectory

Analytical science and device company Trajan Group has reported continued strong growth with net revenue up more than 50 percent and net EBITDA up more than 60 percent in FY23 over the previous year. The Melbourne scientific and medical group reported net EBITDA of $21.1 million on revenues of $162.2 million – the 12th year of growth for the company. The Life Science Solutions business which includes a range of automated workflow systems in human health was responsible for $29.9 million in revenue and EBITDA of $12.2 million. The company finished FY23 with a cash balance of $11 million. Managing Director and Chief Executive Officer Stephen Tomisich said the company was delivering on its strategy to build a global business of scale to have a positive impact on human health. “We can observe in those areas where we have focused on being best practice that market adoption and growth follows…It is the successful integration of the acquired businesses and teams along with the continued support and enhancement of existing product lines that enables the robust performance reported today.”

Maggie Beer’s growth run slows

Luxury food manufacturer Maggie Beer’s growth run has faltered as consumers respond to tight economic conditions and rising prices. The Barossa Valley manufacturer reported net sales from continuing operations in FY23 of $88.7 million, down 1.4 percent on the previous year. While Maggie Beer branded product sales were up 1.4 percent, sales from the company’s Hampers & Gifts Australia segment which had been growing strongly as the company went online were down 7.5 percent. Chief Executive Officer Kinda Grange said : “Our operating results for FY23…reflect the continued effect of rising interest rates and inflation impacting consumer spending, shifting consumer habits in online shopping, together with higher freight and labour costs.” During the year the company decided to retain the Paris Creek Farms dairy business as a continuing business.

Work progresses on BREZ

Work towards establishing a renewable energy industrial precinct in Barcaldine is powering ahead, according to the Queensland government, which allocated $7 million in the budget towards common user infrastructure and has “discussions under way with several interested companies.” The proposed industrial hub would be linked to a large-scale, renewable energy project and provide manufacturing tenants with competitive low-carbon electricity. According to the statement, organisations including Sunshot Industries have expressed an interest in the industrial precinct.

LETA, Wyoming university sign MOU

Low Emission Technology Australia (LETA) and the University of Wyoming School of Energy Resources (SER) announced the signing of a Memorandum of Understanding (MOU) this week on to foster collaboration in the advancement of low emission technologies. According to a statement from LETA, it establishes a framework that will see the pair collaborating towards “accelerating the adoption of breakthrough technologies,” sharing technical knowledge and experience. Priority cooperation areas include carbon capture and storage (CCS), hydrogen and ammonia production and transportation and coal to products. Additionally, LETA will evaluate and recommend technologies suitable for testing at the Wyoming Integrated Test Centre (ITC).

Spirit company launches first premium cocktail served in carton

Beverage brand Mandatory Spirit Co. and packaging company Tetra Pak venture have introduced what they say is an Australian first: a sugar-free, gluten-free, and vegan range of premium cocktails in one-litre Tetra Pak aseptic carton packages. According to a statement from Tetra Pak on Thursday, the packaging allows drinks to stay safe and taste fresh without the need for preservatives, with a shelf life of up to 18 months unrefrigerated. Mandatory Spirit Co. Co-Founder, Mark Collins said: “Aussies can have a bit of fun drinking their favourite cocktails, while purchasing and disposing of the packaging in a far more sustainable way.” According to the statement, the one-litre cartons have up to five times less impact on climate change than glass, and more than two times traditional PET (polyethylene terephthalate) bottled beverages across its entire lifecycle in Australia and New Zealand.

ACT government introduces new circular economy laws

The ACT Government has introduced new legislation “to support a new legal framework to establish a circular economy in Canberra” and helping fulfil “the ambition for Canberra to be a circular city where we value waste as a resource”. According to a statement on Thursday, the bill follows the territory’s phase-out of certain single-use plastics, and extends powers to ban other problematic, non-plastic products. It introduces a new power to make a regulation on recyclable waste processing requirements, with the “initial intention is to use this power to require businesses that produce recyclable material to separate co-mingled recycling.” Minister for city services Chris Steel said the bill “will enable the Government to set a level playing field for all businesses, to ensure more resources are recycled and diverted from landfill.”

Picture: Star Combo Pharma