Bremworth

[winner (n)]

All go at Bremworth

Oozing posivity

https://announcements.nzx.com/attachment/448086.pdf

[Gerald]

All go at Bremworth

Oozing posivity

https://announcements.nzx.com/attachment/448086.pdf

Seem to be trying their best to reduce the appeal to an acquirer... Or maybe a buyer will get excited with the expansion story. Who knows, could be the next A2 

[lorraina]

It was the insurance money that attracted me to BRW.
However the story has now changed.
I think the new story and strategy will be BRW's only chance to get business to being  viable .
So far it looks to me as they are doing the right things,so I do not mind waiting and missing an early payout.

[Basil]

Bremworth is working with industry group, Awatoto Industrial Action Group, to develop a flood
mitigation solution in conjunction with the Hawkes's Bay Regional Council and the Napier City
Council to prevent a repeat of the impact to the business community in that location following Cyclone
Gabrielle. This initiative has local, regional and national government support.

I hope we don't get another Cyclone event anytime soon and that their plans to mitigate future flood risks are successful but I think its a very risky move rebuilding on the same site.  All the best to holders.

[winner (n)]

Segment sales since 2019 below

Wonder when sales (esp carpet etc sales) will get back to 2019 levels

H125 were up ..slightly ..so heading in right direction :t_up:


Bit sad that carpet sales are only half what they were 6 years ago ..but that's a sign what's possible eh.

You cannot view this attachment.

[Basil]

Sales are in steep decline.  Inflation has been 23% in the last 5 years so in inflation adjusted terms, the real value of sales has fallen even more precipitously. e.g. sales in 2024 in inflation adjusted terms are just on $65m in 2019 dollar terms, (less than half what they were 5 years previously).  You have to be very "brave" to think changes at the board level will change that alarming trend.

[lorraina]

The following sounds very positive;
Media release 24 July 2025
Bremworth Expands Napier Production in $6 million Post-Cyclone Rebuild
Carpet manufacturer, Bremworth (NZX: BRW), is expanding production capacity at its Napier plant
more than two years after the site was heavily damaged by Cyclone Gabrielle, marking a key stage
in its return to full domestic production of its woollen yarns and a boost to local employment.
Bremworth CEO, Craig Woolford, says the company is investing $6 million in its Hawke's Bay facility
to reinstate key yarn making equipment. The move is designed to ensure greater efficiency, product
and quality control and significant lead time improvements, while avoiding excess capacity.
He says they plan to operate three shifts 24 hours a day, every weekday and will hire up to 40 new
staff to accommodate expected demand.
"As a result of the cyclone, most of our Hawke's Bay facility was taken offline. To maintain carpet
production, we introduced a hybrid yarn supply model which saw increased quantity of our yarns
processed externally, including offshore. Rather than just reinstating everything, we've taken the
opportunity to rebuild smarter – in the process, allowing us to ramp up yarn capacity as demand
grows," says Woolford.
"We're bringing back the core pieces of equipment needed to give us flexibility and headroom while
keeping costs down.
"The reinstated capacity brings Bremworth back to full operational strength, with both mills going to
be able to meet current demands and support the company's plans to scale for growing international
demand."
Woolford says key processes, including the site's dye house and other lines, are already operational.
The first stage of the current equipment reinstatement is expected to be operational by the end of
August, with a second stage three months later.
The production expansion is expected to dramatically reduce lead times, from up to six months down
to six weeks, and cut yarn inventory by half, while allowing the company to take full control of yarn
quality again.
"We'll also be rehiring a range of specialised staff in the process. "It's not just about rebuilding
production but also restoring local capability, building resilience and bringing jobs back to Hawke's
Bay."
Woolford says the reconfigured site gives Bremworth the ability to scale quickly in response to export
growth, including new interest from the US and Australian markets.
"If demand spikes, we've got capacity we can activate. Each new addition takes about three months
and hundreds of thousands of dollars to bring online, but that's a good problem to have," he says.
Bremworth has already begun phasing out its temporary hybrid yarn supply model and plans to bring
yarn production fully back into its own New Zealand facility. Woolford says the move aligns with the
company's focus on quality control and environmental impact.
"We're proud of what we are doing. It's a win not just for the business, but for Napier and the wider
New Zealand manufacturing story."
Bremworth is working with industry group, Awatoto Industrial Action Group, to develop a flood
mitigation solution in conjunction with the Hawkes's Bay Regional Council and the Napier City
Council to prevent a repeat of the impact to the business community in that location following Cyclone
Gabrielle. This initiative has local, regional and national government support.
ENDS
For furth

[winner (n)]

Bremworth play in the residential and commercial markets....both new and redecorating work.

Indicators of the state of the market are -


• Building consents data for residential and selected commercial builds. Using the floor area numbers gives a good indicator of where the market is heading
• House sales activity (number of sales) because quite often people move in to their new home and start redecorating ...maybe new carpets.
• The general mood of householders. The consumer confidence survey has a question 'Is this a good time to buy a major household item?' and this is also a lead indicator.

In a past life in a similar related industry with same drivers I put these into a multiple regression model to forecast where the market was heading. Quite high accuracy and stood the test of time.

If we look at these today building consents indicate no growth for the next 12 months and maybe longer as floor coverings last part of any build. Property sales numbers are picking up so that's positive for floor coverings. But consumer confidence is in the dumps big time which isn't good for floor covering sales (like we'll make do with what we got until better times)

So overall these lead indicators are saying not much market growth in New Zealand until 2027

So Bremworth need to take (regain) market share to grow ....just as well back into synthetics which will against all they stand for will the growth engine for them in near/medium term

That's how I see it. The related industry I mentioned  is currently playing in a stuffed market as well

[lorraina]

BRW have stated their is demand from their Australian and NZ customers for synthetics.
When I was a sales rep, when our company produced something customers asked for ,I always said to them;"we listened to you and have produced what you asked for"..Result we got outstanding orders.
I expect BRW will get the same response .
With BRW having excess capital they will most probably offer selected retailers very generous terms to get their product into the market place.

[winner (n)]

BRW have stated their is demand from their Australian and NZ customers for synthetics.
When I was a sales rep, when our company produced something customers asked for ,I always said to them;"we listened to you and have produced what you asked for"..Result we got outstanding orders.
I expect BRW will get the same response .
With BRW having excess capital they will most probably offer selected retailers very generous terms to get their product into the market place.

Jeez percy ..... that 'offering very generous terms' sounds ominious

Margins are already low ...and going lower with more lower margin synthetics

Hooe they not too generous ...buying business not always a good strategy

[lorraina]

Often incentives do not cost the supplier a great deal.
NZ's top book rep comes to mind.
When selling into shops he made sure the retailer stated how many copies they  wanted.
Retailer to rep.I will take 10.
Top Salesman.That's good,we will match that with 10 on SOR.[Sale or return.]
When I was selling books we had Briscoes on an incentive .Reach certain targets they received higher discounts.

Thinking of the top book rep reminds me of one of his great tricks.
He did a lot of author tours..He had a nack of being able to copy their autograph.
Next visit to a shop went like this.
Retailer....Have you any more of ?'s signed  book.?
Top Salesman knowing they would want 3 or 4,would say yes I have 10 left.
Retailer.I will take them.
Top Salesman then had to go out to his car and sign 10 copies.
Often he had already signed a good number ....lol.

[winner (n)]

Bremworth rep to Carpet Court buyer - here's our new synthetic range you said we should have
Carpet Court man - what's the discount we'd get
Bremworth rep - 40% off list
Carpet Court man - jeez that's the same as we get now and you begging us to buy more
Bremworth rep - ok ....it's 50% off list on EVERYTHING you buy
Carpet Court man - good ....and a 10% advertising allowance
Bremworth rep - seems fair. Deal done

Bremworth rep goes away happy and Carpet Court beams a big smile ...win win

[lorraina]

I trust BRW employ astute reps.
Good reps are worth their weight in gold.

[winner (n)]

I trust BRW employ astute reps.
Good reps are worth their weight in gold.f

Several months later

Bremworth CFO to CEO - what the f### are our sales reps up to
CEO ... going gangbusters eh, doing a great job
CFO - but giving the stuff away ...our f###in gross margins are shot ...big time
CEO - but sales increase offset the lost margin im told
CFO - bull shit .... You'll be explaining declining profits to the market and shareholders won't like that.
CEO - shareholders won't mind, they love the story we telling them and this is just a step on the transformational journey.
CFO - OK but this is a disaster

[Ferg]

A bit off topic but driveways and fencing is usually the last part of a new build.  So it will be slower for them.

If we look at these today building consents indicate no growth for the next 12 months and maybe longer as floor coverings last part of any build. Property sales numbers are picking up so that's positive for floor coverings. But consumer confidence is in the dumps big time which isn't good for floor covering sales (like we'll make do with what we got until better times)

So overall these lead indicators are saying not much market growth in New Zealand until 2027