Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Briscoe lifts FY profit 10%, cautiously optimistic on 2014

Briscoe posts 10% gain in annual profit, says cautiously optimistic about the year ahead

By Tina Morrison

March 6 (BusinessDesk) – Briscoe Group, which posted a 10 percent gain in annual profit, said it is “cautiously optimistic” about the year ahead as many retailers struggle to grow earnings.

Net profit rose to $33.6 million in the 52 weeks ended Jan. 26, from $30.5 million a year earlier, the Auckland-based company said in a statement. That’s in line with its most recent forecast in January that profit would exceed $33 million, although below the $34.1 million mean forecast of analysts polled by Reuters. Sales rose 6.8 percent to $483.6 million, compared with analyst expectations of $482.5 million.

Briscoe, which operates homeware and sports goods chains, said the past year was challenging for many retailers as a slow start to winter and increased rivalry prompted it to offer “more aggressive promotions” which reduced its margins.

“The group’s gross profit margin for the year decreased from 38.86 percent to 38.5 percent, reflecting the extraordinarily challenging beginning to the year as a result of the very late start to the winter category sales and also the continued competiveness of the market throughout the year,” managing director Rod Duke said.

“While many commentators are talking up the outlook for the New Zealand economy, we see a number of retailers continuing to struggle to grow profitability,” Duke said. “Our experience leads us to be cautiously optimist about the year ahead for Briscoe Group.”

The company didn’t provide a specific forecast for earnings in the coming year. Briscoe is expected to post 2015 net profit of $36.8 million on sales of $506.8 million, according to the mean forecast of analysts polled by Reuters.

Shares in Briscoe Group fell 1.2 percent to $2.53, crimping their 6.7 percent advance so far this year.

In the 2014 financial year, the company’s homeware stores boosted earnings before interest and tax by 6.7 percent to $31.2 million as it closed three Living & Giving stores, opened a new Briscoes Homeware store and refurbished other stores.

Earnings at the company’s sporting goods division rose 22 percent to $12.6 million as it refurbished five of its 32 Rebel Sport stores and rejigged the counters and apparel fixtures at seven other stores to free up additional retail space to boost sales.

The company’s online business had significant sales growth during the year across all three brands, Duke said.

Briscoe will pay a final dividend of 8 cents a share on March 31, up from 7 cents a share the year earlier.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Gordon Campbell: On The Australians Scoring Trade Points Against Us With The Chinese

It hasn’t been a great year for Trade Minister Tim Groser... To top it off, Australia has just signed a FTA with China that has far better provisions on dairy exports than what New Zealand currently enjoys in our own FTA with China. More>>

ALSO:

Iwi & Local Consultation: Oil And Gas Block Offer 2015 Begins

Energy and Resources Minister Simon Bridges today announced the start of the Block Offer 2015 process for awarding oil and gas exploration permits. More>>

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news