NZPM Co-operative, owner of Plumbing World, Metrix, and AquaSource, has slid further into loss territory, recording an $8.2 million deficit for the year ending 31 March 2025—the second year of losses amid a tepid building market.
Group Sees Broad-Based Financial Declines
Total revenue for the group dropped 7.8% from $320.97 million in 2024 to $295.86 million in 2025. Gross profit also fell, slipping from $95.6 million to $85.2 million. Earnings before finance costs, tax, and dividends plunged 88.7%, down from $8.89 million to just $1 million.
Construction Downturn Impacts All Segments
NZPM’s interim chief executive Brett Cruickshank pointed directly to industry-wide headwinds. “In terms of our revenue, that’s market-driven, so revenue’s down 8% on the prior year. That’s the construction of residential and new residential builds and I guess just a general construction-industry downturn, so there’s some impact on the commercial segment as well,” he said.
He added that even traditionally stable revenue streams were affected. “Even the alterations and maintenance market is down. These are challenging economic times and people are deferring maintenance.”
NZPM Cuts Costs and Reduces Headcount
The co-operative has moved swiftly to adjust its cost structure in response to declining demand. Margins narrowed by around 1% over the year due to sustained market pressure. NZPM has reduced staff by about 10% over the last 12 months in an effort to remain lean.
While no stores have been closed, a warehouse in Wellington was shut as part of the company’s internal cost-cutting programme. A $5.8 million dividend that would typically be paid to co-operative members has also been suspended.
Tech Investment Rolled Out Despite Losses
NZPM has completed its company-wide rollout of Microsoft Dynamics 365, a project that doubled in cost from an $8 million estimate to approximately $16 million.
“That project’s in and it’s going really successfully, it’s operating well and it’s just part of the investment in technology that we need to do to modernise the business,” Cruickshank said. “We went live across our network on the first of January and we’ve been settling it down in the subsequent months, but we’re happy where we’re up to with it and how it’s operating.”
NZPM Forecasts Prolonged Recovery Timeline
NZPM has not recorded a lift in sales since early 2025, with recovery not expected until later in the year. “The business hadn’t seen an improvement in sales since the start of the year,” Cruickshank said, estimating it may take “six to nine months before the cycle recovers.”
However the brand retains its status as New Zealand’s leading fully locally owned plumbing merchant since its establishment more than 60 years ago by Master Plumbers. The co-operative, which includes Metrix and a 33% stake in AquaSource, is responding to short-term pressures with a strategy anchored in investment and discipline.