The Warehouse Group expects to bring in over $90 million in net profit during the first half of FY21, the business announced on Monday morning.
The result would be a significant jump on the $46.2 million earned during the same period of FY20.
The group, which operates The Warehouse, Warehouse Stationery, Torpedo7, Noel Leeming and online-only marketplace The Market, initially said it would earn closer to $70 million. However, due to strong Christmas period, as well as continued trading over Boxing Day and New Years, the business updated its guidance.
However, this figure doesn’t take into account the cost of repaying the $68 million in Covid-19 wage subsidies, which was repaid in full on 22 December.
According to NZHerald, the business came under fire earlier this year for receiving the subsidy, laying off staff members and subsequently reporting a full-year profit of $44.5 million. The business would have made an annual loss of approximately $4 million without the subsidy.
The Warehouse Group said it expects to end the year in a cash position of $168 million, and that gross margin will be up 170 basis points during the half year.
The group’s half year results will be released in March.