Briscoe Group posts record profit
Net profit after tax (NPAT) of $61.32 million for the year (52 weeks) ending 28 January 2018, a 3.20 per cent increase on the $59.42 million for the previous year (52 weeks).
“If you look back at the past year, we had fires in Christchurch in February; a major flood in April; a relatively late start to winter across the country, with warmer than average temperatures in Auckland and the central North Island during key promotional periods in June; intense cold, snow and heavy rain in many parts of the country during July; and then the British & Irish Lions tour, which sucked up a big chunk of discretionary spending,” said Briscoe Group managing director Rod Duke.
“Given this background, we are pleased with the way our in-store teams and support functions have continued to drive growth and manage inventory throughout the year,” he said.
Last year’s reported NPAT of $59.42 million included one-off benefits totaling $2.7 million in relation to property sales in Hastings. Adjusting for these one-off items gives an increase in underlying NPAT of 8.16 per cent on the 2016-2017 year.
2017-2018 NPAT included dividends received of $5.21 million from Brisoe’s 19.8 per cent shareholding in Kathmandu Holdings Limited.
“Briscoe’s board remained an interested observer of Kathmandu’s performance and of potential opportunities in the industry more broadly,” said Duke.
Earnings before interest and taxation of $83.36 million in 2017-2018 (previous year $79.83 million) were generated on sales revenue of $603.09 million, an increase of 3.47 per cent on the $582.84 million reported in the previous year.
“The small decrease in gross profit margin was a function of the intense competition across the retail sector and other competing claims on consumers’ discretionary spending,” said Duke.
Briscoe invested $5.4 in developing property in Wellington City, Petone, Mt Albert and Silverdale, with $6.4 million invested in the fit-out and refurbishment of new and upgraded stores, and over $2 million in upgraded security camera systems, online platform improvements, enhancements to system software and hardware upgrades.
The operator of Briscoes and Rebel Sport stores also said it’s “well-advanced on improvements to its online offering, with upgrades to its web platform underway, new fulfillment hubs in Whanganui and Hamilton up and running and plans to roll out a Click and Collect service,” following a successful trial through the Botany homeware store.
“This year’s results have shown that giving customers quality products and services and a focus on executing the basics well, is still a recipe for success,” said Briscoe Group chair dame Rosanne Meo.
“There is no doubt the retail sector is at the sharp end of rapid changes in technology and society which will require retailers to identify and address specific strategic issues, particularly in relation to optimising the balance between their online and bricks and mortar offerings.”