Snorkel sales continue to improve
22 November 2023
Tanfield, the 49% shareholder of Snorkel, has reported that the US-based manufacturer has a seen a significant rise in its fortunes over the first nine months of the year.
According to the UK shareholder, Snorkel’s sales increased by 20.5% to US$51.1m compared to the same period in 2023. EBITDA improved to a US$1.0m profit, compared to the third quarter last year when there was a $3.1m loss.
For the year to date the company saw a sales increase of 10.8% to US$145.1m across the nine months. While the increase in sales represented a $14.1m in value, EBITDA for the first 9 months of the year was US$2.8m profit, compared to the a $10.9m loss in the same period in 2022.
This, said Tanfield, largely resulted from the ongoing improvement in gross profit margin, which in the first nine months of 2023 increased to 12.9%, up from 4.2% for the full 2022 year.
In Tanfield’s statement, it said, “The Board is unaware of the reason behind the gross profit margin improvement, but it continues to seek clarification and access to information that is sufficient to fully investigate both current and historic gross profit margins.”
As previously reported, Tanfield added that Don Ahern, the owner of Snorkel’s 51% in the joint venture, sold Ahern Rentals at the end of last year to United Rentals, which had been a part of the Ahern Family of Companies, for around US$2 billion.
Tanfield added, “Ahern Rentals was Snorkel’s largest customer and therefore the Board are pleased to see that Snorkel has still been able to increase its sales in each quarter of 2023, and that overall the sales now appear to be at vastly improved gross profit margins, despite Don Ahern selling Ahern Rentals.
Below is a summary of the consolidated financial statement for the third quarters of 2023 and 2022, along with the respective year to date totals.