Yes agree. Realistically they gave fully saturated NZ and would either need to expand offering to aussie or acquire or launch a 3rd brand or offer more under existing brand umbrellas though that may be hard to do in a meaningful way.
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Yes agree. Realistically they gave fully saturated NZ and would either need to expand offering to aussie or acquire or launch a 3rd brand or offer more under existing brand umbrellas though that may be hard to do in a meaningful way.
Rod still top of the class......
https://www.nzx.com/announcements/425646
Briscoe Group Limited (NZX/ASX code: BGP)
Highlights:
• Record full-year (52 weeks) Group sales $792.0 million, beating last year by +0.78%
• Full year Homeware sales growth, also ahead of last year, by+0.54%
• Full year Sporting goods sales growth, +1.17% improvement on last year
• Full year Online sales as mix of total Group sales, 18.72%
• Full Year gross profit margin to be at least 42.30%
• Closing inventories to be at least $10 million below last year
• Expected full-year net profit after tax (NPAT) to be in excess of $83 million which will represent at least 94% of last year’s record NPAT
• Announcement of full year results including final dividend - 13 March 2024
Full year: 30 January 2023 – 28 January 2024 (52 weeks):
The directors of Briscoe Group Limited announce unaudited sales for the full-year, 52-week period to 28 January 2024 of $792.0 million, an increase of 0.78% on the $785.9 million reported for last year.
Both segments delivered sales growth - the homeware segment increased sales by 0.54% during the full year and the sporting goods segment increased by 1.17% for the full year.
2nd Half: 31 July 2023 – 28 January 2024 (26 weeks):
Unaudited sales for the 2nd half, 26-week period ended 28 January 2024 were $422.7 million, 1.15% ahead of the $417.9 million for the 26-week 2nd half period of last year.
For the 2nd half, the homeware segment sales increased on last year by 0.76% with the sporting goods segment increasing by 1.79%.
Commentary
Group Managing Director, Rod Duke said: “I’m excited and delighted to announce another year of record sales. To post positive sales growth across both trading segments in a year widely regarded as extremely difficult for retail trade, is an outstanding achievement.
“Our business model has again demonstrated how relevant and flexible it is irrespective of existing economic conditions. The team’s focus on improving critical performance measures through enhanced process and technology continues to translate into improved sales, gross profit, inventories and ultimately, customer experience.
“We’re again pleased with our online performance which has held up well during the year and will represent 18.72% of total Group sales for the year ended 28 January 2024, virtually unchanged from last year’s 18.97%. Developments and enhancements have driven both functionality and productivity improvements across the E-Commerce platform during the year.
“Gross margin remains an important focus for the Group and despite increasing margin pressure from the impacts of weaker economic conditions, I’m extremely proud that we will meet our goal to protect around half of the 633 gross profit basis points gained during the 2 years ended January 2021 and January 2022. We expect the Group’s final reported full-year margin to be at least 42.30% which would result in 287 basis points (45%) of the 633 points being maintained since January 2022.
“Inventory has been another area which has enabled us to deliver sales growth and meet our gross profit margin goals. We have invested considerable energy into refining how, when and what we purchase, as well as improving a number of other inventory measures. Whilst there are still some year-end procedures to be completed to determine the final inventory value, the Group will close our financial year at least $10 million under last year’s closing value of $117.8 million.”
The Group will benefit from around $3.2 million of improved net interest income compared to the previous year as a result of improved cash balances and higher interest rates.
Rod Duke said, “As previously reported the Group will not match last year’s net profit after tax (NPAT) of $88.4 million but we do now expect the result to be in excess of $83 million. This represents the achievement of at least 94% of last year’s record NPAT - a remarkable performance given the difficult trading conditions experienced across the retail market.
“We believe the challenging retail environment will continue into the 2024 calendar year and do not underestimate how difficult trading will be. However, we have a very strong core business which has proven to be very resilient, exciting initiatives to drive growth and an incredibly talented team which positions the Group to continue to outperform most other retailers in New Zealand.”
The Group is due to report its full year result, including announcement of final dividend, on Wednesday 13 March 2024.
Email just in.....Rebel Sport have a sale!! Who knows, even Briscoes might have a sale!!
20% off STOREWIDE | Waitangi weekend sale on now! :cool:
I thought is a pretty top effort, especially in this environment… He runs a good ship. what are peoples thoughts?
How old is he? Will he ever step aside?.. these old guys love it as it’s theirs life’s work.
It’s a similar thing to Delegats. Jim Is majority shareholder. He’s tried to step back but now back in there as chairman….
Pretty good Rod.......:)
https://www.nzx.com/announcements/427855
Briscoe Group Limited (NZX/ASX code: BGP)
Highlights for the full year ended 28 January 2024:
• Total record sales $792.0 million
• Both Homeware and Sporting Goods segments delivered positive growth, +0.54% and +1.17% respectively
• Gross profit margin 42.40%, protecting 47% of the 633 gross profit margin points gained across the two years impacted by Covid (years ended January 2021 and January 2022)
• Online sales as mix of total Group sales 18.72%, (LY 18.97%)
• Net profit after tax (NPAT) $84.2 million, 95% of last year’s record NPAT
• Final Dividend 16.5 cps
• Total Dividend for the year 29.0 cps, +3.57%
The directors of Briscoe Group Limited announce a net profit after tax (NPAT) of $84.2 million for the year ending 28 January 2024, representing 95% of the record $88.4 million reported for the previous year.
Board Chair, Dame Rosanne Meo announced that the directors have resolved to pay a final dividend of 16.5 cents per share (cps).
The dividend is fully imputed and, when added to the interim dividend of 12.5cps, brings the total dividend for the year to 29.0 cps, an increase of 3.57% on the prior year. The final dividend will be paid on 27 March 2024. The share register will close to determine entitlements to the dividend at 5pm on 20 March 2024. The Company’s dividend policy is to pay out at least 60% of NPAT when calculated on a full-year basis. “We are delighted to be able to reward our shareholders with a record total dividend of 29.0 cents per share, achieved with an increased interim dividend earlier this year now also with this final dividend announcement.
“The team’s ability to consistently produce quality results is notable and indeed extraordinary, given the continued uncertainty and deterioration of the retail market during the twelve months to January 2024.”
Rod Duke, Group Managing Director, said: “We’re delighted to have produced another year of record sales against a macro retail environment which has seen many retailers struggling to hold their ground. It’s significant that the Group was able to grow sales across both the first and second halves as well as across each of the trading segments, homeware and sporting goods.
“The combination of a strong core business and the execution of strategic initiatives by an extremely talented team has again proved to be a great formula for success - delivering a bottom line equal to 95% of last year’s record NPAT.”
The earnings were generated on sales revenue of $792.0 million, an increase of 0.78% on the $785.9 million generated for the previous year.
As expected, gross margin percentage declined for the period from 44.02% to 42.40%. Rod Duke said, “Like all retailers we faced margin pressure from a number of factors as the impacts of the ongoing economic downturn were felt. However, the Group has differentiated itself by protecting a significant portion of the margin percentage increase achieved during the Covid pandemic. I’m extremely proud to report that this result will represent the protection of 47% of the 633 gross margin basis points gained during that period. The Group’s full year gross profit margin immediately prior to Covid (Year ended January 2021) was 39.43% compared to this year’s margin of 42.40% - a significant achievement which we have worked hard to deliver.”
The Group’s online business continues to perform well and represented 18.72% of Group sales as at 28 January 2024. Rod Duke said, “We continue to invest in both the front and back-end platforms with a number of initiatives designed to connect the online and physical store experiences including; introduction of an omni-members voucher programme and also management of complete customer experience through “My Account”. Complementing this our focus on frictionless customer experience continued with the introduction of features such as; self-service returns and tools to help customers find the right product based on individual needs. Additional payment and delivery options are also being worked on which should enable these features to be expanded during 2024.”
This year’s result includes $2.1 million (after tax) of dividends from the Group’s investment in KMD Brands Limited, matching the amount received for the same period last year.
The Group will benefit from $3.4 million of improved net interest position compared to the previous year because of improved cash balances and higher interest rates.
Inventories totaled $104.9 million at year-end, including a new Rebel Sport store opened by the Group in April 2023, $12.9 million below the $117.8 million reported for last year. Rod Duke said, “Inventory improvements have been critical in enabling us to deliver sales growth and meet our gross profit goals. As local and international supply chains have returned to more normal, reliable and cost-effective levels of service compared to the disruption of recent years, the team has been able to tighten the levels of inventory held by the Group. This has seen a rationalisation of inventory across most categories and we continue to invest considerable energy into refining, how, when and what we purchase, to continually improve our inventory measures.
The Group’s balance sheet remains strong, with cash and bank balances of $175.4 million as at 28 January 2024 and no term debt. Approximately $20 million of creditor payments included in the trade payables balance were subsequently paid on or before 31 January 2024.
During the year $15.1 million of capital investment was made by the Group of which $4.3 million represents expenditure on the fit-out of new and refurbished stores. $5.6 million was spent to purchase the existing Briscoes Homeware site in Timaru and the balance of the capital investment was for online platform improvements, enhancements to system software and hardware and the continuation of security initiatives including ungraded alarm and camera systems, stronger roller shutters and concrete bollards.
Despite the difficult trading conditions, the Group progressed a number of store development projects during the year. As reported at half year, we were delighted to open a brand-new Rebel Sport store in Ashburton during April in conjunction with the relocation of the existing Briscoes Homeware store. In addition, three full-store refurbishments were completed during the first six-month period at; Briscoes Homeware Whangarei, Rebel Sport Taupo and Rebel Sport Manukau.
During the second half of this financial year refurbishments were also completed at Briscoes Homeware Manukau and Wairau Park in Auckland, as well as Rebel Sport Invercargill. All store upgrades result in a dramatic difference to the look and feel of the stores and include the latest ideas from the new-store design concepts including LED lighting, redesigned fixtures, personalized counters, click & collect storage zones and dramatic new in-store signage.
A number of other projects also continue to grow and benefit the Group’s profitability. Examples of these include; the ongoing introduction of expanded ranges of new products online which are shipped direct from suppliers to customers and electronic shelf labeling to be introduced in both Briscoes Homeware and Rebel Sport stores after completion of successful trials.
Rod Duke said, “Significant progress has also been made during the year in relation to establishing a new distribution centre in South Auckland. We are well into the implementation at our existing distribution centre, of a new Warehouse Management System (WMS). This will enable the current team to upskill themselves before transitioning to the new facility when it eventually becomes operational. In addition, we have selected our automation partner in relation to the significant improvement in warehousing capability intended for the new facility. In February we also signed a Letter of Intent for the purchase of land and the building of a new warehousing facility at Drury, South Auckland. We expect the project to require expenditure, inclusive of land and building construction, of at least $100 million across the next 3 financial years. This state-of-the-art facility will step-change our capability in warehousing and distribution, enhance inventory management across the entire group network including optimisation of the existing store footprint, to deliver significant performance and efficiency gains.
“Looking forward, we remain cautious as to the retail environment with ongoing uncertainty in relation to economic conditions, customer sentiment and cost pressures. We do not underestimate just how challenging trading could be but are very confident in relation to the Group’s ability to continue to perform and deliver superior results.”
Group Chair Dame Rosanne Meo said, “On behalf of the Board I would like to acknowledge the outstanding work done by the entire Briscoe Group team. We are thankful to our over 2,000 team members from the distribution centre, across stores and to support office for their level of commitment, teamwork and enthusiasm to produce the best shopping experience possible. This is at the core of the impressive results which the company continues to deliver.”