NZX and Media Release 11 May 2009

Postie Plus Group Beating Recessionary Blues with Q3 Lift in Sales and Margins

Nationwide retailer, Postie Plus Group, has performed creditably, ending the third quarter with growth in sales and margin and increased market share as its family focused brands hit the mark in terms of price, position and appeal.

Managing Director Ron Boskell said Group sales were up 7.3 per cent and margins had improved even further in the quarter ended 30 April 2009 to maintain momentum as the Group continues the rebuild to return to profitability.

Quarterly Sales Analysis (from Continuing Operations)
2008-09
$m 2007-08
$m Variance
%

Q1 Sales to 31/10/08

19.92
21.84
(8.8)

Q2 Sales to 31/1/09

29.98
30.70
(2.3)

Q3 sales to 30/4/09

25.41
23.69
7.3

Total YTD
75.33

76.23
(1.2)

“We’ve achieved growth in both sales and margins during the recession and against continual discount promotions from our major competitors to give us great heart going forward,” he said. “We remain on track to deliver a modest profit at the end of this financial year. However, while we are pleased with the results to date, we still face the most important retail quarter for PPGL in a very difficult economic climate.”

All the Group’s brands, Postie+, Schooltex and Baby City, performed strongly in the third quarter which showed the strength and appeal of the offering and the effectiveness of the Group’s restructured processes and systems.

“We have inventory under control, reduced debt and our expenses are meeting stringent targets. We have bought well, streamlined our supply and delivery chain and refreshed our branding to give shoppers genuine choices and value to look good less,” Mr Boskell said.

ENDS