STELLA HOLDINGS (ASX: 01836) has announced its unaudited financial results for the first half of the year.
For the three months ending June 30, 2026, the group's consolidated revenue increased by approximately 1.2% to $449.3 million, compared to $444.0 million in the same period of 2025.
For the six-month period ending June 30, 2026, consolidated revenue rose by about 1.5% to $786.7 million, up from $775.0 million in the prior corresponding period.
Regarding its footwear manufacturing operations, shipment volumes for both the three-month and six-month periods were roughly in line with expectations, showing little change from previous levels.
The average selling price for the first half of 2026 saw an increase, driven by a higher proportion of premium-priced products within the group's sports category, coupled with rising raw material costs.
Under its newly released three-year strategic plan covering 2026 to 2028, the company's focus for 2026 is on commencing operations and ramping up capacity at three new factories located in Indonesia, Bangladesh, and Vietnam.
Together with its existing facility in Solo, Indonesia, these new plants are projected to add approximately 20 million pairs of additional production capacity over the coming years.
The group has designated 2026 as an investment year, with the majority of the profit growth anticipated from the strategies outlined in the three-year plan expected to materialize in the latter part of the 2026-2028 period.
For the three new factories in Indonesia, Bangladesh, and Vietnam, the group expects to initiate operations in the second half of 2026.
Furthermore, the company remains committed to distributing regular dividends, including final and interim payments, while maintaining a payout ratio of around 70%.
In addition to this, the group plans to return up to an extra $60 million in cash to shareholders during 2026 through a combination of share buybacks and a special dividend.
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