Bremworth profits soar 393% after cyclone insurance payouts

Bremworth, a wool carpet and rug manufacturer, has reported a 393% increase in net profit after tax for the year ending June 2023.

The increase was attributed to insurance payouts following Cyclone Gabrielle.

Despite the disruption caused by the cyclone, the company's revenue remained relatively stable, with a 6% decrease to $89.6 million.

Revenue from the wool buying division was down 5%, carpet sales fell 3%, but revenue from the direct-to-consumer rug business increased by 45%.

The company's Napier facility remains offline due to the cyclone, but it has received $35.5 million in progress payments from insurers.

The company has $271.3 million in insurance cover for the Napier operation and expects further payouts.

The cyclone-related expenses incurred by the company totaled $14.5 million, and write-offs of cyclone-damaged assets totaled $7.6 million.

Bremworth is currently undergoing a strategic review to evaluate growth and investment options.

Most staff at the Napier factory have taken up voluntary redundancy, but the company is offering to reinstate them if the decision is made to reopen the facility.

The CFO, Victor Tan, is retiring but will continue to serve as Company Secretary until a replacement is found.