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Rod Duke, Briscoe Group's managing director and largest shareholder. Photo / Dean Purcell
Homewares and sporting goods retailer Briscoe Group has delivered a $45.6 million net profit in the six months to July 31.
Its overall earnings were down 3.9 per cent compared to $47.4m achieved in the same period last year.
In the six months, Briscoe increased sales revenue by 2.7 per cent to $367m.
The company will pay an interim dividend of 12 cents per share for the period.
Briscoe Group chair Dame Rosanne Meo said the half-year result was an outstanding performance” considering the significant headwinds confronting the retail sector.
“The agility and resolve shown by the leadership team in the face of these challenges has been impressive not only with the result that has been produced but also in relation to the support and care provided across the entire Briscoe Group team,” Meo said in a statement to the NZX.
Homeware sales for the first-half increased by 2.74 per cent to $228m compared with $222m in the same period last year, while its sporting goods sales increased by 2.51 per cent to $139m, up from $135.7m.
Its gross margin dollars increased slightly, up from $166m to $167m, while its gross margin percentage declined from 46.5 per cent to 45.6 per cent.
Managing director Rod Duke said he was pleased with the group’s financial performance.
He said to produce a net profit after tax only slightly below the record first-half profit reported last year was very pleasing.
Duke said people should remember how terribly shopping centre foot traffic fared during the early part of the Omicron outbreak.
He said a recent decline in economic sentiment and second Omicron wave hurt foot traffic again.
“In addition, to be less than 1 percentage point under last year’s half year gross profit margin percentage is an excellent result. However, there is still more to do as the pressure on margin continues to intensify,” Duke added.
“It’s also worth noting that this first-half represents an increase of 21.44 per cent over the most recent comparable period not impacted by Covid, Feb 2019 – July 2019.”
Duke – Briscoe Group’s largest shareholder – said the company was facing margin pressure as a result of ongoing supply chain disruption and cost increases, a weaker New Zealand dollar and falling consumer confidence due to cost of living spikes.
He said the group was mindful of the impact of living costs had on its team and as a result, it had increased wage rates for retail staff wage earners by 7 per cent from April.
Briscoe received a dividend of $1.44m, included in its result from its investment in outdoor clothing and equipment company KMD Brands during the first six months of trading of the FY22 year.
Duke said Briscoe’s online business continued to surpass expectations and “performed exceedingly well” during the period.
Its online sales grew by almost 23 per cent over the first-half and now represent more than 19 per cent ot total group sales.
“With the escalation of Omicron early in the period and its impact on foot traffic to bricks and mortar stores, our online platform offered a viable and seamless alternative for our customers,” he added.
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