Fantastic Holdings announce profit jump

fhlFurniture retailer, Fantastic Holdings, has announced a net profit increase of $10.9 million, representing a 56.6 per cent increase on the prior corresponding period.

The company also reported an 11-per cent increase in group sales for the half year, which amounted to $272.8 million with same store sales recording 15.7-per cent growth. The company announced an EBIT result of $14.9 million, which represents a 45.8-per cent increase from the previous corresponding period.

“The group has achieved a record sales result this half year with very pleasing comparative sales growth of 15.7 per cent. The ratio of our cost of doing business to sales is at its lowest point in five years,” said Fantastic Holdings chairman, Julian Tertini.

Fantastic Furniture recorded same store sales growth of 19.2 per cent, Plush with 18.8 per cent same store sales growth and Original Mattress Factory with 16.9 per cent same store sales growth, the company revealed in a statement.

Fantastic Furniture, the largest of the group’s businesses accounting for approximately 73 per cent of group revenue, reported revenue of $198.2 million from its 72 stores across Australia.

In late Decemeber 2015, the group operated 126 company-owned stores nationwide, with an additional two franchise stores.

The company’s board declared a fully franked interim dividend of 7.0 cents per share. The dividend for the half year represents a pay-out ratio of 66.2 per cent of net profit after tax.

“We have strengthened our customer value proposition and we are seeing results flow from those changes,” said Fantastic Furniture CEO, Debra Singh. “We are refreshing our product range, improving our supply chain and investing in our people.”

The half has also seen the e-commerce platform for Fantastic Furniture become fully operational with online sales up 5o per cent.

“It has been well received by customers and this sales channel is already showing strong growth.”

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