Pental Delivers 96% Growth in H1 FY21 NPAT, Raises Dividend

Highlights:

• Pental has delivered strong performance in the Australian market through both company owned and contracted branded product portfolios, driving H1 FY21 net sales growth of 17% to $64.6 million

• Tight focus on cost controls and efficiency saw significant expansion of margins and profitability: H1 EBIT +91.4% to $4.3 million and H1 NPAT +95.9% to $2.9 million

• Pental continues to invest in developing new products with unique points of difference.

• Pental has declared an interim fully franked dividend of 1.0 cent per ordinary share (H1 FY20: 0.7 cents per share)

• Pental is in a strong position to drive continued profitable growth both organically and via mergers & acquisitions with a healthy balance sheet, $2.7 million in net cash, effectively no debt, strong and increasing brand recognition

Pental manufactures and distributes cleaning products with White King Bleach their main product. They are also expanding into asia and had increased business activity and interest as a result of the pandemic.

Holding PTL

FY20 Results presentation

Previous link didn't work.

http://www.pental.com.au/images/site/pental/FY20_Full_Year_Result_-_Investor_Presentation.pdf

Probably one of the most underrated stocks of the pandemic while everyone chased ZNO, AEI, ANN and others.

Seems like a good result exceeding all forecasts as a result of demand for cleaning products during the pandemic.

Bought a few months ago when I found the director was buying.

Increased dividend.