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

 


Kathmandu overcomes strong kiwi dollar to lift earnings

Kathmandu overcomes strong kiwi dollar to lift Australian earnings; shares surge

By Suze Metherell

March 24 (BusinessDesk) – Kathmandu Holdings posted an 11 percent increase in first-half profit, even as a strong kiwi dollar crimped earnings in Australia, the outdoor goods and clothing chain’s biggest market. The shares jumped 7.8 percent after the results were released.

Net profit was $11.4 million in the six months ended Jan. 31, up from $10.3 million a year earlier, the Christchurch-based company said in a statement. Sales rose 1 percent to $167.6 million.

Kathmandu’s Australian unit, which accounts for almost two thirds of revenue, reported a 0.3 percent decline in sales to $103.1 million, although in Australian dollar terms sales rose 15 percent. Segment earnings from Australia climbed to $2.8 million in the first half from $1.9 million as cost of sales fell 4 percent to $33.6 million.

All up, the retailer estimates a strong kiwi dollar against the Australian dollar sliced $2.2 million off pretax earnings. The New Zealand dollar has risen 18 percent against its Australian counterpart in the past 12 months and was recently at 93.78 Australian cents.

In New Zealand, sales rose 4.6 percent to $62.3 million, to account for 37 percent of total revenue, while earnings before tax rose to $9.85 million from $9.1 million. Sales in the UK fell 33 percent to $2.3 million while is loss widened to $1.2 million from $783,000. Kathmandu launched four new stores in Australia, one in New Zealand and closed one in the UK.

“The New Zealand economic environment and consumer sentiment is currently generally positive, but there is more uncertainty in Australia’s prospects, and I anticipate it will continue to be the more challenging retail market during 2014,” said Peter Halkett, chief executive. “Our increasing brand awareness and profile in Australia make me confident that we will see on-going sales growth this year.”

The company’s gross profit margin widened to 63.9 percent in the first half from 62.7 percent a year earlier.

Kathmandu shares rose 8.4 percent to $3.62, and have gained 36 percent in the past 12 months. An interim dividend of 3 cents per share will be recorded on June 6 and paid out June 17.

The company said it expects full-year profit growth, but warned “unseasonal weather through the Easter and winter sale periods is always a significant variable influencing the full year’s results.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news