Warehouse reports lower interim profit

Friday 11th March 2011

The Warehouse Group has reported a lower interim profit, citing difficult trading conditions, but it has held its interim dividend.

The discount retailer said sales fell 1.2% to $908 million in the six months to the end of January from the same period a year earlier.

Adjusted net profit after tax fell 7.1% to $53 million and operating profit fell 5.2% to $78.9 million. Earnings before interest, tax, depreciation and amortisation fell 4.5% to $99.1 million. The reported net profit after tax fell 8.9% to $52.3 million.

The interim dividend was held at 15.5 cents per share.

The company said trading conditions were difficult during the half-year period and the sector it operates in was highly promotionally driven.

A breakdown showed that Warehouse Stationery increased its operating profit by 21.7%, while other group operations reported a 20% fall in profit.

The company said trading conditions would be challenging for the remainder of the year, though the Christchurch earthquake was not expected to have a material impact on the company's financial performance.

NZPA

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