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Bunnings records strong growth in 1st half

Bunnings records strong growth in 1st half

Bunnings, the leading retailer of home improvement and outdoor living products in Australia & New Zealand, today announced its results for the half-year ended 31 December 2015.

Strong revenue growth of 10.9% was achieved, with revenue in the 6 months totaling A$5.5 billion. Earnings (EBIT) grew by 13.4%, with EBIT of A$701 million recorded for the half-year. Total store sales growth of 11% was achieved, with store-on-store sales increasing 7.9%. Good growth was achieved across consumer and commercial areas, within all major trading regions and across all merchandising categories. The uplift in earnings combined with strong execution and disciplined capital management, lifted return on capital to 35.8%.

Bunnings [Managing Director] John Gillam said, “The strong trading performance is a direct outcome of the momentum and traction from a disciplined focus on our strategic agenda. Good progress has been made on our actions to strengthen and grow the business. Work to deliver more value, improve merchandising and enhance customer experiences achieved positive responses with consumer and commercial customers.

“We continued to successfully extend our brand reach physically and digitally. During the period, we opened 10 trading locations and we expect to open more than 30 new Bunnings Warehouse stores in Australia and New Zealand across the next two financial years.”

At the end of the period, there were 240 warehouses, 67 smaller format stores and 32 trade centres operating in the Bunnings network across Australia and New Zealand.

In January, Bunnings announced plans to acquire Homebase from Home Retail Group plc for £340 million. Homebase is the second largest home improvement and garden retailer in the UK and Ireland, with 265 stores and annual turnover of more than £1.4 billion. Mr Gillam confirmed today that the operational and integration planning for the Homebase acquisition is well progressed. Subject to the vendor’s shareholders voting on 25 February in favour of the proposed transaction, completion is expected inside a fortnight.

ENDS

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