Schaffer Corporation's Half-Year Financial Report for the period ended 31 December 2023

Schaffer Corporation Limited (ASX: $SFC) has released its Half-Year Financial Report for the period ended 31 December 2023. The report shows a 72% increase in the consolidated net profit after tax attributable to members of the parent entity, rising from $5,134,000 for the comparative period to $8,835,000. The company's revenue from ordinary activities also saw a substantial 35% increase to $112,894,000 compared to $83,454,000 for the comparative half-year period.

Executive Commentary on Financial Performance

The improved first half for the Automotive Leather division, driven by the launch of a delayed major leather supply program, has positively impacted our financial performance. This increase in supply has led to decreased inventory levels, resulting in improved cash flow from operations and reduced net debt. Additionally, Delta's profit improved due to increased civil infrastructure projects in Western Australia and operational efficiencies. However, Group Investments' profit reduced compared to the comparative half-year due to larger aggregate unrealized losses on equity investments and no sales of land at Beachside, North Coogee during the half-year.

Outlook and Corporate Strategy

Schaffer Corporation's Half-Year Financial Report reflects a strong performance driven by the Automotive Leather division and Delta. The company's outlook remains positive as it continues to focus on operational efficiencies and supply chain management. The delayed major leather supply program has had a significant impact on the first half results, and the company aims to maintain this positive momentum in the upcoming periods. With a 72% increase in net profit, Schaffer Corporation is well-positioned to capitalize on its strengths and navigate any challenges in the market.