Salmat CEO looks for sales growth following restructure

CEO says marketing services business is in better shape than it has been in five years

Marketing services giant, Salmat, says it’s turning its attention from restructuring to sales growth over the coming year after reporting stronger underlying profits in its latest financial report.

The ASX-listed group reported a 9.5 per cent drop in annual revenue for the full-year to 30 June to $450.8 million, which it attributed to planned discontinuation of product and service lines. In contrast, underlying EBITDA was up 47.4 per cent to $19.6 million, and net losses were just $6m, a far cry from the $98m reported in 2015.

Of this, its catalogue business was down 4.5 per cent to 4.6 billion in terms of volume, but email/SMS volumes increased by 2.4 per cent to 336m. The group also completed its acquisition of the remaining 50 per cent of the MicroSourcing business on 10 August for US$24.1 million.

Salmat kicked off a transformation program in January 2015 aimed at simplifying its operations, reducing and restructuring costs in a bid to grow in a more targeted and sustainable manner. Its CEO, Craig Dower, said the company was now on track for a stronger financial performance in the next financial year, adding the business transformation was already delivering great results.

Having overhauled its operations and internal systems, Dower said it’s concentrating on sales and driving profitable revenue growth over the coming months and predicted continued EBITDA growth over the next year.

“We are focused on the right products and services; we have simplified the business; now it is time to grow,” Dower said.

“The past 12 months has seen a huge amount of change within the business. We have taken major steps in structurally and systemically realigning our cost structures, through the targeted removal of roles and systems and a move of our IT platforms to the cloud.”

Salmat provides communications services across both traditional mail as well as digital channels, and also operates a contact centre division.

Overall, media and digital revenue reached $254.9 million, down 13.1 per cent year-on-year, but overall margin performance improved to 9.5 per cent.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in