Helping Kiwi's live better every day - first impressions
A lot to get through but these are my first impressions
Normalised net profit exceeded my expectations at just on $175m and amounts to eps of 50.6 cps
Gross profit percentage up 380 basis points WOW !!
Final dividend declared of 17.5 cps (fully imputed) bringing the total to 35.5 cps, just a fraction over the 70% minimum of normalised eps is as per expectations and prudent given post balance date lockdown
35.5 cps fully imputed (35.5 / 0.72) = 49.31 cps gross which on a $4 share price gives gross yield of 12.3%.
Net cash balance was strong at $160.5m, (no debt) despite inventory being up nicely and they seem well positioned for the busy Christmas trading period
Stock turn increased to 5.3 times which is very impressive from 4.4 times last year, (this is a real highlight as it shows their stock selection and management has really improved. Aged inventory down nicely in line with this improvement)
8 new store within a store initiatives during the year bringing the total SWAS to 25.
Reduced store footprint, down 5 stores as they look to optimize their retail footprint.
CODB (Cost of doing business) down 180 bps is very impressive
Current lockdown is hurting with FY22 YTD sales down 22%.
Those with a negative bias will focus on the negative...as for me I am a happy holder and happy to hold through the challenges presenting in the short term believing that we will get back to retail normality sometime soon.