Gale Pacific shares climb after profit guidance upgrade
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Gale Pacific (ASX:GAP) has told shareholders it anticipates a half-yearly profit between $7 million and $9 million.
Gale Pacific has various businesses including shade solutions and commercial fabrics such as grain covering tarpaulins and sun-shades for playgrounds. It has a commercial presence in both Australia and the United States.
If replicated, the result would represent a stark turnaround from the prior corresponding period – a $3.6 million loss – and is ahead of previous guidance.
The company blamed the result in the prior corresponding period on a stock build and US-China tariffs. But in recent months sales have accelerated across its businesses.
One singled-out sector was its coated fabrics portfolio, primarily those used in agricultural and grain handling applications.
While Gale Pacific did not single out its home shade and window furnishings businesses, Coolaroo and Zone Interiors, it would not be the first stock to see a windfall in that sector.
A newer endeavour of Gale’s has been reusable face masks which it launched in May, although it is still only shipping masks to US locations.
CEO John Marcantonio said the acceleration of demand was encouraging to see.
“We are well-positioned, our brands and products are resonating with consumers and commercial end-users,” he said.
“We are pleased with the start to this financial year and remain cautiously optimistic about the coming periods despite the challenging global operating environment.”
Gale Pacific climbed by 15 per cent and after lagging for much of 2020 is now in parity on a 12 months basis.