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

 

Warehouse annual profit falls 5.9%, less than expected

Warehouse annual profit falls 5.9%, less than expected

By Suze Metherell

Sept. 18 (BusinessDesk) - Warehouse Group, the country's largest listed retailer, posted a 5.9 percent decline in annual profit, a smaller drop than it had projected, as earnings recovered in the second half.

Adjusted profit, which excludes one-time items and is the basis for dividend payments, fell to $57.1 million in the 53 weeks ended August 2, from $60.7 million reported over the 52 weeks a year earlier, the Auckland-based firm said in a statement. Sales rose 4.6 percent to $2.8 billion. Statutory net profit was $52.4 million.

Warehouse is focusing on reducing costs and improving its products and productivity as it seeks to getting higher returns from the hundreds of millions of dollars spent overhauling stores and buying new business the past few years.

The retailer reported that its second half "rebounded from a challenging first half year" with its Red Sheds posting a 3.7 percent gain in operating profit to 79.6 million, as sales increased to $1.72 billion from $1.67 billion a year earlier. Warehouse stationery improved operating profit 7.9 percent to $12.7 million, with sales rising 4.8 percent to $263 million.

The performance of its electronics stores Noel Leeming reported a 43 percent drop in operating profit to $6.4 million, with the first-half impact of cycling the digital switch over and one-off rebranding costs not recovered in the second half.

Revenue increased 7.2 percent to $666 million. Torpedo7, its outdoor equipment store, saw operating profit shrink to $34,000 from $1.1 million a year earlier, as the costs of rebranding and the integration of recent acquisitions weighed on the bottom line. Sales increased 22 percent to $131 million.

The company's new financial services business reported a loss of $1.8 million, widening from a year earlier loss of $1.5 million, which it said was in line with expectations.

"The second half performance was particularly encouraging," chief executive Mark Powell said. "After a period of significant catch-up investment it was good to see strong profit leverage from continued sales growth."

In March, Powell said he will step down in February 2016 after 14 years, the last four as chief executive that saw him revamp the retailer's so-called 'Red Sheds' and steer its online strategy. Powell has overseen a $100 million 'refresh' programme for the Warehouse stores and led the company through the acquisition of Noel Leeming and Torpedo7, the development of its online strategy and the turnaround of the Warehouse Stationery stores.

Chairman Ted van Arkel said the succession process for the top job was on track. The board declared a final dividend of 5 cents per share, bringing the annual dividend to 16 cps. Warehouse is paying dividends solely from its retail-based profit, stripping out its financial services business.

It was too early to provide specific guidance for the coming year, but based on current business performance adjusted profit was expected to be in line with 2015.

Warehouse shares last traded at $2.60 and have declined 17 percent since the start of the year. The shares have fallen from their 2002 peak of $7.83.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>

ALSO:

NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>

ALSO:

Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>

ALSO:

Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Fonterra: Farmers Taking Another Step Towards New Zealand’s Low Emissions Food Production

They’re hot off the press and intended to help take the heat out of climate change. Fonterra farmers are already among the world’s most sustainable producers of milk and now have an additional tool in their sustainability toolbox. Over the last few ... More>>

ALSO:



Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>

ALSO:

Dairy: Fonterra Sells China Farms

Fonterra has agreed to sell its China farms for a total of $555 million (RMB 2.5 billion*1), after successfully developing the farms alongside local partners. Inner Mongolia Natural Dairy Co., Ltd, a subsidiary of China Youran Dairy Group Limited ... More>>

ALSO: