Standex CEO hails firm’s financial shape

The global CEO of Standex has described the company as being in the best financial shape in its history following the recent publication of its fourth quarter fiscal results.

The US-based cooking equipment manufacturer generated EBITDA of £23m (£14m) as it increased sales 5% to $170m (£106m) during Q4, capping a fine 12 months for the organisation.

“We exited the year in the strongest financial condition that the company has ever been in,” declared president and CEO Roger Fix, noting that the company ended the period in a net cash position of $4.7m (£2.9m).

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“This is the first time in the company’s history that we have been in a net cash position,” he revealed. “For the year, sales were up 9.2% with organic growth of 6.9% and all five groups increasing sales year over year. As a result, we increased our full-year non-GAAP net income from continuing operations by 14.8% to $43.4m (£27.2m) — another company record.”

Sales from Standex’s Food Service Equipment Group increased 4% year-on-year, with operating income increasing 11%, helping to close out “a year of solid performance” for the company, according to Fix.

A strong response to Standex’s rack refrigeration offering went down well in the US to boost the company’s Refrigerated Solutions division, and it is now looking to repeat the strategy of broadening its penetration of the chain segment to boost its Cooking Solutions arm.

Fix said Cooking Solutions was still seeing soft demand from the retail grocery segment in the UK as well as lower sales to several US-based quick service chain customers, but noted that the firm was focused on driving initiatives to improve the unit’s profitability.

“In addition, we are pleased with the market reaction to our new Giorik Steambox combination steam and convection ovens since we announced our exclusive distributor relationship with Giorik in April,” he said.

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