Page 6 - 2021 NZPM Annual Report

Chair’s Report

CHAIR’S

REPORT

John DeBernardo

The financial year ended 31 March 2021 was a range of internal cost savings, and an industry sector not
an extraordinary and unusual year for our ravaged by the impacts of COVID-19, a lot of that success is
down to the loyalty of our shareholders, sound management
NZPM co-operative, as along with nearly by our people, and the resilience of our business.
every other organisation worldwide, we faced
extraordinary disruptions to our business and Both Plumbing World and Metrix performed very well in
extremely competitive and disrupted markets, and despite
operations due to the COVID-19 pandemic. continuing downward pressure on market pricing, margins
remained consistent at 30%.
In confronting those challenges we remained steadfastly
committed to building a sustainable co-operative future for Our core operating profit and capital return metrics improved
NZPM that was underpinned by a strong balance sheet, the strongly in all areas, and our relatively conservative level of net
creation of greater shareholder value, ongoing investment consolidated debt at $4.5m is reflected in a strong balance
in our people, and the continuing transformation of the sheet with significant liquidity headroom.
business to work more efficiently and effectively.
OPERATIONAL HIGHLIGHTS
OUR RESPONSE TO COVID-19
Supported our customers and our people safely
During a public health crisis that has caused serious global through a global pandemic
humanitarian and economic issues, our people worked
together to support each other, our suppliers, our customers Increased our shareholder membership and wider
and our members. As business conditions started to customer base
stabilise mid-2020, our co-operative team then showed real Invested in our own brand supply channel partner,
dedication to get us strongly back into the market and to Aquasource
ensure that NZPM continued to be successful.
Realigned our Metrix, Plumbing World and NZPM
business operations
FINANCIAL HIGHLIGHTS

Continuing to provide exceptional service in a safe
6.8% Consolidated revenue $262.9 million environment saw an influx of new shareholders joining the
co-operative throughout the financial year, and this bears
Earnings before net finance costs, dividends, and solid testament to our co-operative value proposition. The
82% taxation (operating profit) $21.0 million addition of qualifying builders as shareholders since 2016 also
contributed, and this segment now represents 8% of our
3.4% Operating profit to revenue ratio 8.0% overall shareholder numbers.
Own brand and exclusive product sales continued to expand
6.2% Return on capital employed 23.4% strongly aided by the expansion of our LeVivi and TIVA
ranges, and we expect that momentum to continue following
completion of our investment in our supply chain partner,
Despite the loss of significant revenue during April 2020, our Aquasource. This investment not only secures our long-term
sales rebounded from May, and that momentum continued supply channel for imported products, but it also enables
right through to the end of what has been the biggest ever NZPM to influence key ethical and sustainable purchasing
financial year in the history of our co-operative. Whilst that behaviors.
result was underpinned by the Government wage subsidy,

4 NZPM Group Limited