Cyclone Insurance Payouts Have Substantially Lifted Carpet Company Bremworth’s Profit

Cyclone insurance payouts have substantially lifted carpet company Bremworth’s profit. It has just reported an $11 million profit for the year to June – up from $2.2m the year before. But taking off the one-off insurance factor, the company reported a loss of $2.4m for the 2023 financial year due to a disrupted supply chain following Cyclone Gabrielle, a constrained construction sector, and a retail and economic slowdown. Chief executive Greg Smith says the impact of the cyclone has featured noticeably in this year’s results but it was pleasing that revenue remained relatively stable, despite the disruption caused by the cyclone. Last year Bremworth made a net profit after tax of $1.7m. Annual revenue was down 6% to $89.6m, revenue from the company’s wool-buying division was down 5% and carpet sales have fallen by 3% to $70.2m. However, revenue from Bremworth’s higher-margin rug business was up 45%.