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 newsletter!

Or
Error: Please check your email address.
Show Comments

Blog Posts

Will our manners go the same way as texting when robotic servants take over?

Much of the talk in the industry is focused on the limited amount of time that screens have left in our lives.

Katja Forbes

Founder and chief, sfyte

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

are you talking about bbc news here

frank

CMO interview: How BBC Worldwide's marketing lead builds brand purpose and growth

Read more

Toms is definitely my favourite shoe brand! Along with Aurélien. For this summer I bought two pairs of navy Toms espadrilles and a pair o...

Paul Erickson

​The shoe with a good soul: TOMS’ innovations for philanthropic engagement

Read more

I think this is the best article today about the salesforce latest platform. Thanks for taking your own time to discuss this topic, I fee...

Ramramky

Salesforce looks to democratise AI, IoT with latest platform play

Read more

I came across this recently when researching blockchain loyalty point projects. There are quite a few projects. Most are in development a...

Andrew @ EcomLoop

How cryptocurrency is set to change the customer loyalty program model

Read more

nive!

Maureen Becks

How AI helped San Churros build brand loyalty and excitement

Read more

Latest Podcast

More podcasts

Sign in