Tuesday 14th September 2021
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The directors of Briscoe Group Limited announce a net profit after tax (NPAT) of $47.46 million for the half-year ended 1 August 2021 compared to $27.98 million achieved for last year’s first half. The half-year results are unaudited.
Dame Rosanne Meo, Briscoe Group Chair said, “The results the team have produced for this first six-month period are very impressive. The way in which the leadership team continues to grow the relevancy of the underlying business model, but also challenge itself to progress strategic initiatives to improve and drive future growth, is a real credit to them.”
The directors have resolved to pay an interim dividend of 11.50 cents per share (cps). This compares to last year’s interim dividend of 9.00 cps. Books will close to determine entitlements at 5pm on 21 September 2021 and payment will be made on 14 October 2021. The company’s dividend policy is to pay out at least 60% of NPAT when calculated on a full year basis.
Rod Duke, Group Managing Director, said, “$47.46 million of NPAT sets a new benchmark for the Group and we’re delighted to have produced such a strong first half result. After the strong post-lockdown recovery experienced during the second half of last year, it’s very pleasing to have been able to complement that recovery with the inclusion of other initiatives which we have introduced in relation to our three key strategic areas; enhancing the shopping experience, improving our supply chain and developing new revenue streams.
The earnings were generated on sales revenue of $358.4 million, an increase of 22.58% on the same period last year. Rod Duke said, “Clearly, the impact of COVID-19 caused unprecedented and volatile sales patterns across the first half of last year, but even using a more normalised comparison with the first half sales produced 2 years ago, the Group’s sales increased significantly by 18.30%, with the first quarter increasing by 14.94% and then strengthening to an increase of 21.61% for the second quarter.
Gross margin dollars increased by 35.20% for the period from $123.28 million to $166.66 million, with gross margin percentage increasing from 42.16% to 46.50%. Rod Duke said, “The enhanced analysis and management of promotional activity has contributed to a step-change in gross margin and we continue to work very hard to consolidate these gains. We are also seeing the benefits emerging from the work we are doing with KPMG to improve inventory in relation to optimising our ordering, allocation, flow in to store and overall stock levels.
“The team right across-the-board continues to do a fantastic job for us day-in, day-out and we were pleased to be able to increase the wage rates for our in-store hourly-paid team by 6.4% from May 2021. The employment market remains extremely competitive and we expect it to remain so for some time.”
The Group received a dividend of $0.96 million from its investment in Kathmandu Holdings Limited (Kathmandu) during the six months. There was no dividend received last year as a result of Kathmandu’s response to the COVID-19 situation.
Homeware sales increased by 20.77% from $184.35 million to $222.63 million and sporting goods sales by 25.66% from $108.06 million to $135.79 million.
The Group’s online business continues to perform exceedingly well, representing 16.16% of Group sales for the half-year. Rod Duke said, “System developments in relation to the way in which online orders are picked in-store have resulted in significant productivity and efficiency gains. In addition to these back-end process improvements we have also enhanced the front-end online experience with the introduction of functionality allowing customers to easily find matching and recommended products, as well as receiving relevant communications via our new personalised email system. In addition, new search functionality and the introduction of our ‘Find-In-Store’ stock availability feature will significantly improve the online customer experience.”
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