Import/manufacture and wholesale distribution
Mix of third party manufacture and imports
$2,843,523 - Auckland
This business was formed over 20 years ago. Turnover has grown by 68% over the last four years. Gross profit margins are very consistent, at 41%-42%.
Around 60% of the products are made by contract manufacturers. These are marketed under four inhouse brands. The remaining products are imported. There are around 200 product lines.
Sales are almost exclusively B2B. The largest customer in 2021/22 made up just 9% of sales.
Turnover is highly seasonal. Last year, 72% of sales occurred between September and December. This allows an owner to take extended leave at less busy periods, e.g. January/February.
Business strengths
- In operation for over 20 years
- Highly profitable; 2021/22 return to working owner $749,000, EBIT profit $632,000
- High and consistent gross profit margin percentages - c42%
- An estimated 95% of sales are business to business
- Established inhouse brands
- Sole NZ distributor for a range of overseas suppliers
- Premium products and reputation for quality
- No inhouse production required - all manufacturing is contracted out
- Seasonality means that c72% of sales occur in just four months
- Very broad customer spread - largest in 2021/22 made up just 9% of turnover
- Investment in brands and product development, supply arrangements and the scale of the business all create barriers to entry for any new competitors
- Not heavily reliant on any one supplier or customer
- Operates Monday to Friday only
- Run from a single location
- Relatively modest overheads
- Relatively minimal fixed assets required
- Minimal bad debts over the last five years
- No technical skills/knowledge required of the owner
- Opportunities for further growth
The business does not require any specialist technical skills of its owner.
Interested parties should click on the link below to accept the confidentiality terms. We will then contact you to discuss your interest. Note that the client will need to approve all Information Memorandum requests.
Net surplus: $631,894 year ended 31 March 2022 EBIT
EBIT - Earnings Before Interest and Tax