Shriro Holdings delivers 10% profit jump as BBQ sales fire up
Shriro Holdings has reported Shriro Holdings Half Year Results for H1 FY26, with net profit after tax climbing 10.0% to $6.6M in the six months to 31 December 2025. Revenue increased 8.4% to $60.6M, driven by strong BBQ sales and robust kitchen appliance performance in New Zealand.
The consumer discretionary company’s EBITDA rose 5.6% to $11.4M, reflecting both sales growth and lower post-ERP IT costs. Earnings per share surged 37.1% compared to the previous corresponding period, amplified by the company’s active share buyback programme. The board declared an interim dividend of 2.0 cents per share, fully franked.
Cash holdings stood at $9.7M as at 31 December 2025, down from $24.7M a year earlier. The decline reflects $20.0M returned to shareholders through buybacks ($15.0M in February 2025 and $5.0M in December 2025) plus $3.9M in dividends paid during the 12-month period.
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Financial snapshot shows growth across all key metrics
The Shriro Holdings Half Year Results (ASX: SHM) demonstrate consistent improvement across core financial metrics, with the company’s strategic capital management approach shaping both earnings quality and balance sheet composition.
| Metric | H1 FY26 | H1 FY25 | Change |
|---|---|---|---|
| Revenue | $60.6M | $55.9M | +8.4% |
| EBITDA | $11.4M | $10.8M | +5.6% |
| NPAT | $6.6M | $6.0M | +10.0% |
| Cash Position | $9.7M | $24.7M | -60.7% |
The earnings per share increase of 37.1% significantly exceeded the 10.0% profit growth. This disparity reflects the mechanical impact of share buybacks, which reduced the number of shares outstanding and concentrated earnings across fewer units. The company’s $20.0M buyback programme executed over the past 12 months has materially reduced the share count used in EPS calculations.
The lower cash balance represents deliberate capital allocation rather than operational weakness. Management has prioritised returning surplus capital to shareholders whilst maintaining sufficient liquidity to fund ongoing operations and growth initiatives.
What do earnings per share actually tell investors?
Earnings per share measures a company’s profit divided by the number of ordinary shares on issue. The metric provides a per-share basis for comparing profitability across periods and between companies. A rising EPS typically indicates improving financial performance.
Share buybacks mechanically increase EPS by reducing the denominator in the calculation. When a company repurchases its own shares, those shares are cancelled or held in treasury. Fewer shares outstanding means the same profit pool is divided among fewer units.
Shriro’s result illustrates both effects operating simultaneously. The underlying business generated 10.0% more profit, whilst the active buyback programme reduced the share count. The combined impact produced the 37.1% EPS growth. Investors should recognise this represents both genuine earnings improvement and a capital management boost, not solely operational outperformance.
Regional performance breakdown
The company’s geographic revenue split reveals divergent trends across its three operating regions:
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Australia: Revenue increased 7.2%, with the seasonal division (primarily BBQ products) driving growth. Management noted BBQ distribution is meeting expectations in the Australian market.
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New Zealand: Revenue rose 1.9% despite subdued consumer conditions. Growth was constrained by underperformance in plumbing brands, attributed to the inability to secure core product ranging with a major retailer.
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International: Revenue surged 105.6% compared to the previous corresponding period. A significant portion related to discounted stock sold to the new US distributor, which took inventory onto its balance sheet rather than reflecting end-market demand.
Australia remains the core earnings engine, contributing the majority of group revenue. New Zealand faces near-term headwinds from retail distribution challenges. The international figure requires context, as the substantial growth reflects a one-off inventory transfer rather than sustained demand acceleration.
International expansion and new product momentum
The company has consolidated its European distributor network as a strategic efficiency measure. The transition resulted in a distributor inheriting excess inventory. Distributors were appropriately stocked as at 31 December 2025.
New stock orders from the United States remained minimal during the half. Uncertainty surrounding potential tariff changes on goods exported from China to the USA has dampened customer ordering activity. The company has invested in its US partnership to grow BBQ sales and distribution.
The company’s new pizza oven product has been well received by the market, according to management commentary. Pizza ovens are now described as a key product category within Shriro’s international business. This represents product diversification beyond the company’s traditional BBQ seasonality, potentially smoothing revenue patterns across calendar periods.
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FY26 outlook and capital allocation priorities
Management has reaffirmed EBITDA guidance of greater than $15.3M for the full year ending 30 June 2026. The company intends to proceed with a $15.0M off-market buyback in the second half of FY26 at $0.81 per share, as approved at the 2025 Annual General Meeting.
The board has signalled a strategic shift in capital allocation priorities. Following the 2.0 cents per share dividend declared in February 2026, dividends will be deprioritised as the company focuses on funding capital growth. This represents a pivot from income returns toward growth investment.
Dividend Policy Shift
“Following the 2.0 cps dividend declared today, dividends will be deprioritised as the Company focusses on funding capital growth.”
The growth strategy encompasses targeted acquisitions alongside continued organic brand expansion. A dedicated executive has been tasked with identifying new brands for Shriro to represent in Australasia. Management noted ongoing macroeconomic volatility, including potential tariff changes, may continue to affect customer orders in the company’s US export business.
Growth strategy at a glance
Management has outlined a three-pillar approach to expanding the business:
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New product releases to drive sales, with e-commerce investment to support online growth
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Dedicated executive focus on identifying new brands and acquisition targets for the Australasian market
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USA partnership investment to grow BBQ sales and distribution channels
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European distributor consolidation with focus on untapped geographic regions
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Staff development and capability building as core operational foundations
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ERP upgrade completion with ongoing focus on leveraging operational efficiencies
The company has completed its ERP implementation, with optimisation costs remaining. A comprehensive IT cost review is underway, with further efficiencies expected. Capital management through share buybacks has reduced the share count used to calculate earnings per share.
The reaffirmed guidance, combined with active capital management and strategic M&A focus, positions Shriro for continued operational delivery. Shareholders should anticipate lower near-term dividend payments as management redirects capital toward acquisition opportunities and organic growth initiatives across its brand portfolio.
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