Bremworth profits soar after Cyclone Gabrielle 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.

This increase was mainly due 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 $89.6m.

The company's Napier facility remains offline due to the cyclone's impact, but they have received $35.5m in progress payments from insurers.

Bremworth has $271.3m in insurance cover for the Napier operation and expects further payouts.

The company is evaluating growth and investment options with the cash reserves accumulated from insurance payments.

The cyclone has prompted a strategic review and the development of a hybrid manufacturing model that will lower fixed costs and allow for increased exports.

Most staff at the Napier factory have taken up voluntary redundancy and found new employment in the region.

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