Salmat CEO looks for sales growth following restructure
- 29 August, 2016 11:52
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.