Jewellery retailer, Michael Hill International Limited, reported a 5.1 per cent increase in its after tax profit after improved performance in its Australian, New Zealand and Canada segments.
The company posted an increase in profit of $24.9 million for the half-year, up 5.1 per cent from the same period the previous year.
The Brisbane-based company posted a group revenue of $310.8 million, up 9.7 per cent from the prior corresponding period, and its earnings before interest and tax is up 0.8 per cent to $35.2 million. The company reported an 18.7 per cent drop in its net cash from operating activities, from $39.9 million in the half ending December 2014 to $32.5 million in the same period in 2015.
Michael Hill grew revenue and earnings in Australia, which is its largest market. It also boosted its earnings in New Zealand and Canada, but its US segment was impacted by store changes.
The company posted a revenue of $175.6 million from its 166 Australian stores, which is a 4.2 per cent increase from the prior corresponding period. In New Zealand, Michael Hill’s 52 stores posted a revenue of $67.5 million up 6.7 per cent from the same period last year.
The company mentioned on its report its sales and EBIT lifts in New Zealand were due to the “stable and experienced leadership team”, as well as the, “continued strength of the vibrant Auckland economy”.
However, the jewellery retailer suffered US, where it was affected by an increased marketing spend, the temporary closure of Woodfield Mall in Chicago for three months, and by the costs associated with opening a new store at Rooseveld Fields in New York.
But, according to company chair, Emma Hill, they “remain confident” that they will improve their US segment over the coming half-year.
Hill stated its Emma & Roe store sales for the half year increased by 49.9 per cent. But, as the brand is still in test mode, the company won’t be disclosing their financial results as a separate segment, and therefore, their results and associated assets and liabilities are treated as “unallocated” in the half year segment note.
The Emma & Roe brand was launched in April 2014 with 10 stores in Australia and one in New Zealand. Hill noted the trial of the Emma & Roe brand will probably continue for the balance of the financial year and a decision would then be made whether to proceed with a full expansion program.
The company has announced an interim dividend of NZ2.5 cents per share with no imputation credits attached for New Zealand shareholders and no franking credits for Australian shareholders. The dividend will be paid on April 1.
