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- Pump manufacturer GUD (GUD) is choosing to withhold its financial guidance, despite a strong recent quarterly performance
- In the company’s first quarterly report of FY21, sales across its businesses rose 14 per cent compared to the previous corresponding period
- GUD attributed the rise in sales to a resurgence in consumer interest following the easing of pandemic-related restrictions, as well as sustained demand from the agricultural sector
- Despite the strong first-quarter figures, GUD has not provided any half or full-year guidance, due to the uncertain and volatile nature of the ongoing pandemic
- GUD Holdings closed 0.88 per cent in the green for $12.61 per share
Pump manufacturer GUD (GUD) is choosing to withhold its financial guidance, despite a strong recent quarterly performance.
Back in July, GUD had noted a steep resurgence of consumer demand following the easing of pandemic-related lockdowns.
While the heightened sales buffeted the company’s recent full-year report, GUD was unsure if demand would continue to improve once its resellers restocked and the swell of post-lockdown consumer interest abated.
Nevertheless, it seems strong demand has continued into the first quarter of 2021, with sales from the company’s auto and water division jumping 14 per cent on the previous corresponding period.
Despite sustained lockdowns impacting GUD’s customers in Auckland and Victoria, demand has remained strong across the company’s client base in regions that remain unrestricted.
Notably, GUD’s Davey brand reported a 10 per cent increase in revenue versus 2019’s same quarter, driven mainly by sustained demand from the agricultural sector, which managed to offset a downturn in tourism related sales.
CEO Graeme Whickman is attributing much of the success to the GUD team, saying its employees are ensuring the company’s remains financially strong and well placed.
“It’s clear that the operational costs and importantly incremental employee efforts have been notable, I’d like to go on record and thank them for their contribution through this challenging period,” he added.
All that said, GUD remains hesitant to provide any half or full-year financial guidance, given the ever-changing nature of the ongoing pandemic.
GUD Holdings closed 0.88 per cent in the green for $12.61 per share.
