How Is Shriro Turning a Revenue Drop Into EBITDA Growth?
Shriro Holdings reported a 13.6% revenue decline in FY25 amid a strategic shift in its BBQ segment but delivered a 5.5% rise in EBITDA. The company plans a $20 million share buy-back in FY26, signaling confidence in its operational turnaround.
- FY25 revenue down 13.6% to $103.3 million due to importer model shift
- EBITDA up 5.5% to $15.3 million despite $1.4 million ERP costs
- Completed exit from Seasonal Business, adopting capital-light model
- Returned $19.5 million to shareholders via dividends and buy-backs in FY25
- Proposes $20 million buy-back in FY26 alongside new product launches
A Year of Transition and Resilience
Shriro Holdings Limited (ASX, SHM) closed its 2025 financial year with mixed results that reflect a company in the midst of strategic transformation. Revenue fell 13.6% to $103.3 million, primarily due to the shift from a wholesaler to an importer model in its Australian BBQ category, which brought lower average selling prices. This transition, coupled with subdued discretionary spending, weighed on top-line performance.
However, the company’s operational discipline shone through with a 5.5% increase in EBITDA to $15.3 million, exceeding guidance despite absorbing $1.4 million in costs related to the rollout of a new ERP system. This system, delivered on time and within budget, is expected to unlock further efficiencies in the coming year.
Capital Returns and Board Changes
Shriro’s capital management remains a highlight, with $19.5 million returned to shareholders in FY25 through fully franked dividends and share buy-backs. The company holds a strong cash position of $13.9 million and zero debt, underpinning its proposal for an additional $20 million buy-back in FY26, subject to shareholder approval. This move signals confidence in the company’s cash flow generation and commitment to shareholder value.
The AGM also marked notable board changes, with non-executive directors John Murphy and Brian Bunker stepping down following the sale of their nominating groups’ shareholdings. Chair Abigail Cheadle acknowledged their contributions while emphasizing the board’s ongoing strategic focus.
Strategic Outlook and Growth Drivers
Looking ahead, Shriro is optimistic about FY26. The company expects EBITDA growth supported by new product launches, including the Casio FX1AU calculator, a new Casio timepiece range, and three innovative Everdure BBQ platforms. The BBQ segment’s globalisation strategy continues, with distribution partnerships like BBQ Guys in the US enabling a capital-light model that reduces working capital requirements and operational risk.
Shriro’s exit from its Seasonal Business has streamlined operations, and inventory levels have normalized, setting the stage for a rebound. Investment in e-commerce capabilities and staff development further underpin the company’s growth ambitions. The board also anticipates a reduction in IT costs by approximately $400,000 in FY26 due to ERP system optimizations.
Innovation and Brand Expansion
Innovation remains central to Shriro’s strategy, with over 100 registered designs, trademarks, and patents supporting its Everdure BBQ brand leadership. The company is also expanding its portfolio with new distribution brands such as Manhattan Portage, leveraging its e-commerce expertise to penetrate the Australian and New Zealand markets. This diversification aims to balance growth across company-owned and third-party brands.
Overall, Shriro is positioning itself as a leaner, more capital-efficient player with a clear focus on shareholder returns, operational excellence, and brand innovation.
Bottom Line?
Shriro’s FY25 results and FY26 outlook underscore a company reshaping its business model while maintaining strong shareholder returns and poised for growth.
Questions in the middle?
- How will the shift to an importer model affect long-term margins and pricing power?
- What impact will the departure of key non-executive directors have on strategic direction?
- Can new product launches and e-commerce investments offset the revenue decline?
