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- Shares in Gale Pacific (GAP) saw a major jump yesterday after the company released an upgraded profit estimate for the first half of 2021
- Before-tax profit is now expected to be between $7 million and $9 million for the six months ending December 31, compared to a loss of $3.6 million in the same period last year
- The figure also represents an improvement compared to the full 2020 financial year figure of $4.8 million
- The company attributed the increase to strong sales growth in core products within its retail and commercial sectors across the United States and Australia
- Gale Pacific closed 18.52 per cent up for 32 cents per share
Shares in Gale Pacific (GAP) saw a major jump yesterday after the company released an upgraded profit estimate for the first half of 2021.
The company develops and sells high density polyethylene shade fabrics, which are marketed under the “Coolaroo” brand.
For the six months ending December 31, before-tax profit is expected to be between $7 million and $9 million, compared to a loss of $3.6 million for the same period last year.
The revised figure also represents a substantial improvement compared to the full 2020 financial year, which saw a before-tax profit of $4.8 million.
Gale Pacific said the increase was attributable to strong and widespread growth in sales of the company’s core retail and commercial products across Australia and the United States.
Primary drivers in the Australian market are considered to be new products, increased ranging and sustained growth in demand in the retail sector, as well as record levels of demand in the company’s coated fabrics portfolio. This particularly pertains to those in the agricultural and grain handling segments.
In the United States, growth in core products and expanded distribution is underpinned by continued consumer demand growth, which has resulted in consumption rates largely ahead of market averages.
John Paul Marcantonio, Managing Director and CEO of Gale Pacific, said the company is continuing to execute its strategy of becoming a fast-growing global fabrics technology business.
“The acceleration in the United States and Australia across both consumer and commercial end markets for our core product categories is encouraging,” he said.
“We are well-positioned; our brands and products are resonating with consumers and commercial end-users,” John added.
John also noted that he is cautiously optimistic about the coming periods despite the currently challenging operating environment.
Gale Pacific was up 18.52 per cent at the close of trading yesterday to $0.32 per share.
