Beacon Lighting eyes record profit

Beacon-LightingBeacon Lighting has reaffirmed its commitment to delivering a record profit in FY18, unveiling a 19.6 per cent increase in net profit after-tax to $122.3 million for the half-year ended 24 December.

Strong retail and international sales drove a 12.2 per cent increase in top-line revenue to $122.3 million, while earnings before interest and tax (EBIT) increased by 23.4 per cent to $16.9 million.

Company store sales increased by 14.2 per cent, whereas comparative sales increased by 1.8 per amid challenging conditions in Western Australia.

Gross profit margin increased by 3 per cent on the prior corresponding period as the business washed out the impact of Master’s clearance sales in 1H17.

“For the 26 weeks ended 24 December, The Beacon Lighting Group achieved a record sales and profit result,” chairman Ian Robinson and chief executive Glen Robinson said.

“Following the closure of a major competitor in the prior corresponding period, Beacon Lighting was able to return to a more regular marketing program which supported the improvement in margins of the group,” he said.

Online sales increased by 45.9 per cent over the PCP, as the business expanded its presence on international marketplaces and launched on Amazon Australia’s new platform.

The company said that company stores had experienced modest comparative sales growth in the new year, and that an increase in its market share in retail lighting should deliver record sales and profits for the full-year.

Beacon’s commercial office sales increased by 19.2 per cent, while international sales were up 37.5 per cent on continued investment in emerging businesses.

Five new stores were opened in the first-half, which implies one forthcoming opening in the second-half, bringing beacon to 108 stores nationwide (102 company-owned, 6 franchised).

Operating expenses as a percentage of sales increased by 1.1 per cent to $62.3 million, impacted by rising power and occupancy costs.

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