Bremworth Limited Analysis

Overview

Overview

Synonymous with quality, Bremworth has been voted New Zealand’s most trusted carpet brand* for the last eight years. With manufacturing facilities in Napier, Whanganui and Auckland, Bremworth employs over 400 people and is committed to sourcing its wool from New Zealand growers.

In 2020 the company began to implement its new purpose-led strategic plan when it announced it was exiting synthetic carpet production to focus on redefining Bremworth as a premium design and natural fibre company.

Progressive new initiatives are plotting a fresh course for Bremworth’s future. The team at Bremworth invite you to join them to find a more sustainable way.

Key Milestones :

November 2020 – Re-launched the Bremworth brand

December 2020 - Secured funding to execute the strategic plan, Right-sized the organisation

April 2021 - Secured a $1.9 million grant from MPI’s Sustainable Food and Fibre Futures (SFFF) fund to support Bremworth’s $4.9 million sustainability programme

May 2021 - Celebrated last ever synthetic carpet production

June 2021 - Commenced “Let’s Go Good Together” marketing strategy, Signed up to New Zealand Farm Assurance programme, Appointed new CEO Greg Smith

Markets:

The company is mainly focused on the Australasian woollen carpet and rug markets, but also exports carpet to the USA and Canada where it has identified opportunities in the premium end woollen segments of these markets.

Our growth strategy

• To grow the wool flooring market
• To grow our share of the market
• To expand our presence
• To focus on design-led innovation

Performance

The following information was extracted from Bremworth Limited's full year results, released on 29 August 2025:

Bremworth reports FY25 revenue of $88.9 million, NPAT of $18.2 million and normalised EBITDA loss of $12.2 million

Premium carpet manufacturer Bremworth Limited today released its unaudited financial results for the year ended 30 June 2025, reflecting difficult trading conditions across its core markets and the flow-on effect of lower-than-budgeted volumes on recovery of production overheads at its manufacturing plants, as well as challenges coming from its yarn hybrid supply chain that was established following Cyclone Gabrielle.

The Company reported revenue of $88.9 million (FY24: $80.3 million) and a normalised EBITDA loss of $13.2 million (FY24: $4.7 million loss). After taking into account one-off items including insurance claims, restructuring costs and provision for an onerous contract, Bremworth recorded a net profit after tax of $18.2 million (FY24: $4.6 million).

Gross margin deteriorated to 13.9% (FY24: 24.3%), primarily driven by difficult market conditions, selling price pressures and supply chain challenges. Cash and bank balances at year's end were $42.2 million, reflecting insurance proceeds received in February 2025.

Chief Executive Craig Woolford said FY25 had been a tough year against the backdrop of a challenging economic environment, with consumer demand remaining subdued across key markets.

“Our carpet business has continued to face headwinds, with weaker volumes and margin pressures weighing on performance. However, we are taking clear steps to reset the business, including a $6 million investment to expand production at our Napier plant. This project will restore full domestic yarn capacity, significantly reduce lead times and create new jobs in Hawke’s Bay while also reducing yarn input costs and improving quality.

“At the same time, we are strengthening our sales capability by adding more sales representatives in both New Zealand and Australia and changing the way we engage with our retail partners. Sales management are taking a more active role in understanding how we can better service our retailers and to work collaboratively with them to make it much easier to do business with Bremworth. In New Zealand, the increased sales representation will see an increase in headcount from the current five to seven and in Australia from the current nine to 14 as part of our re-focus on sales.

“Encouragingly, earnings for our Elco Direct wool acquisition business were only slightly down on FY24 despite lower volumes and ongoing uncertainties in global markets. Combined with the Napier expansion, the previously announced re-introduction of synthetics, the reduction to our cost base and strengthened sales capability, we believe Bremworth is laying the foundations for a return to sustainable growth,” he says.

Woolford says Bremworth continues to manage cash burn, with operating outflows reducing significantly in the second half of FY25 compared with the first half as the Company starts to bring its inventory management back under control. Capital expenditure during the year totalled $5.5 million, largely associated with reinstatement of the Napier facilities following Cyclone Gabrielle.

While good progress is being made with the Board-led strategic review into the ownership structure of the business, there is no certainty that the discussions with interested parties are going to result in any transaction. The Board will continue to update the market as the review progresses.

The Board remains focused on returning the business to sustainable profitability and will provide an update on strategic priorities at the Company’s Annual Shareholders Meeting later this year.