The price of kitchen appliances is likely to rise as the Australian dollar falls, the company behind Sunbeam says.
GUD Holdings lifted the price of its Sunbeam kitchen appliances, which include coffee machines, toasters and kettles, by six per cent in September to counter the falling value of the currency.
The Australian dollar dropped almost 12.5 US cents to just under 82 US cents in second half of 2014, and managing director Jonathan Ling says that has increased costs for Australian companies selling imported products.
"If the weakening dollar continues, there'll be small price increases across the small goods market," he told AAP.
"When we put the prices up in September our competitors didn't follow so I suspect we lost a bit of market share.
"But we are hearing a number of our competitors are now starting to follow."
Mr Ling said there will be no more price hikes for Sunbeam in the 2014/15 financial year because the company had bought US dollars at a certain rate to help lock in its profit.
GUD, which also owns cleaning products brand Oates, achieved a 16 per cent lift in underlying half year profit, which excludes the cost of restructuring a year earlier.
It made a profit of $17.3 million in the six months to December 31, largely because of an improved performance from several brands, including Sunbeam.
The company said it is on track to lift annual earnings by up to 22 per cent, to between $55 million and $60 million.
The news impressed investors, sending GUD shares up 38 cents, or 5.6 per cent, to $7.18.
IG Markets market strategist Evan Lucas said the company was controlling costs and reducing debt, but underlying growth modest.
"As a business as a whole, it's still very slow," he said.
"Sunbeam and Oates are still their major products and they are growing at, or, just below trend."
GUD'S COST CUTTING DELIVERS IMPROVED PROFIT
* Half year sales of $297m, down 0.4 pct from $298m in 2013/14
* Net profit of $17.3m, up from $4.8m
* Interim dividend of 20 cents a share, up two cents
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