Fantastic Holdings’ record revenue increase
The owner of furniture brands Fantastic Furniture, Plush and Original Mattress Factory, posted a statutory net profit after tax of $11.4 million, down from the previous year’s $13.2 million. Continuing NPAT rose 63 per cent to $21.4 million.
“This is a pleasing result with the business well positioned for continuing growth,” said Debra Singh, group CEO Retail.
Fantastic Holdings posted a continuing earnings before interest tax of $30.1 million, up 58.3 per cent from the previous corresponding period, excluding Le Cornu/Ashley/Dare. Results that were impacted by Le Cornu/Ashley posted trading losses of $4.8 million and pre tax closure costs of $9.1 million for FY16 with a cash component of $2.2 million.
Singh said while it was disappointing to close the company’s Adelaide Le Cornu business, it was a critical step in focusing efforts to their core brands, which, she said, were all performing strongly.
“The initiatives we have taken around the connected customer, brand leverage, network optimisation and supply chain/distribution efficiencies to improve performance are delivering and strengthening our position,” she said.
The company’s group like-for-like sales increased by 11.8 per cent. Fantastic Furniture like-for-like sales was up 14.6 per cent for FY16 with a second half increase of 10.3 per cent. Plush like-for-like sales increased by 12.4 per cent for FY16, with sales for the second half up by 7.0 per cent compared to the previous corresponding period.
Singh said Fantastic Holdings will expand its store network in FY17 by around 15 new stores across its retail brands and an additional 15 Fantastic Furniture sites and six Plush showrooms will be refurbished.
In manufacturing, Singh said the Royal Comfort Bedding factory will be relocating to a factory in Sydney’s western suburbs late in the year, and added that both their China and Vietnam factories will be targeting measured expansion of their customer base outside the Fantastic Holdings group.
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