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

 

Michael Hill FY profit up 5.8%, Australia growth slows

Michael Hill FY profit up 5.8%, Australia growth slows

By Hannah Lynch

Aug. 17 (BusinessDesk) - Michael Hill International, the listed jewellery chain, lifted annual profit by 5.8 percent as recovering sales in New Zealand, Canada and the US made up for shrinking sales in Australia, which will be the current year's focus.

Profit rose to $36.5 million in the year ended June 30, from $34.5 million a year earlier, the Brisbane-based company said in a statement. Sales rose 4.5 to $511 million. That compares to analysts' expectations of $36.7 million for reported profit and $515.3 million for sales.

"2011-2012 witnessed good recovery in revenue in New Zealand, Canada and the US while sales were tougher to make in our largest, Australia," chairman Michael Hill said in a statement. "A big focus for the coming year will be to drive same-store sales revenue in Australia - additional resources have been placed in this market with a view to turning around the results."

In Australia, the retailer managed to lift sales 1.8 percent to $333 million even in the face of a difficult retail sector, while same-store sales, which measures outlets open at least 12 months, fell 2.2 percent in local currency terms. Three stores were closed during the period, taking the total of stores in Australia to 153.

Sales in Canada rose 14.3 percent to $55 million, followed by the US up 12.5 percent to $12 million and New Zealand rising 7.1 percent to $109 million.

Same-store sales in the US rose 17.2 percent, followed by New Zealand up 7.3 percent and Canada rising 5.8 percent.

Michael Hill opened no new stores in Canada, one in New Zealand and nine in the US.

"The board is satisfied with the progress of the US operation over the past twelve months but acknowledges there is still as long way to go before the business is proven up in the US market," Hill said. "Focus remains on improving both the top line sales and the margins in order to grow the bottom line in the nine stores over the coming twelve months."

Sales for the company’s professional care plan, which offers maintenance and repairs on jewellery, rose 56 percent to about $27 million.

“As the PCP business is still relatively new (having been introduced in October 2010) the group feels that it remains too early to accurately predict the margin and therefore the profitability of the PCP business," Hill said. "The group is confident however that the PCP's figures will contribute positively to the margin and profits of the overall business."

The company will pay a dividend of 3.5 cents per share on Oct. 5, up from 3 cents last year, taking the year's total dividend to 5.5 cents.

Its shares last traded at $1.09 and have gained about 25 percent so far this year. The stock is rated 'outperform' based on the consensus of two recommendations compiled by Reuters.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Consumer NZ: Bank Complaints On The Rise, Survey Shows

Nearly one in five Kiwis had a problem with their bank in the past year, Consumer NZ’s latest satisfaction survey finds. Consumer NZ chief executive Jon Duffy said the number of bank customers reporting problems had jumped to 18%, up from 11% in 2020... More>>

Federated Farmers: Applauds UK-Australia Free Trade Deal

News that Australia and the UK have signed a free trade agreement is a promising step forward in the fight against tariffs and protectionism, Federated Farmers says.
"It reinforces the international rules-based trading framework and is important for rural producers and global consumers," Feds President Andrew Hoggard says... More>>



REINZ May Data: House Price Rises Continue; Auckland Hits New Record Median Price Again

Median prices for residential property across New Zealand increased by 32.3% from $620,000 in May 2020 to $820,000 in May 2021, according to the latest data from the Real Estate Institute of New Zealand (REINZ), source of the most complete and accurate real estate data in New Zealand... More>>


Stats NZ: GDP Climbs 1.6 Percent In March 2021 Quarter Following December Dip

Gross domestic product (GDP) rose by 1.6 percent in the March 2021 quarter, following a 1.0 percent fall in the December 2020 quarter, Stats NZ said today. "After an easing of economic activity in the December quarter, we’ve seen broad-based growth in the first quarter of 2021... More>>

Reserve Bank: Debt Serviceability Restrictions Added To Policy Toolkit

The Reserve Bank – Te Pūtea Matua and the Minister of Finance have agreed to update their shared Memorandum of Understanding (MoU) on macro-prudential policy and add debt serviceability restrictions to the list of potential tools available... More>>


Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>