Super Retail Group’s profit drop
Super Retail Group posted an 8.2 per cent increase in full year sales to $2.42 billion but posted a 22.6 per cent decline in net profit to $62.8 million for the 53 week period to July 2, attributed to a decline in earnings from its BCF retail chain.
Normalised net profit after tax was $108.6 million, a 2.2 per cent increase from the previous corresponding period.
The group’s segment earnings before interest, tax, depreciation and amortisation saw a 6.4 per cent increase at $245.7 million.
“The overall group result reflected continued strong performance in the auto and sports divisions offset by underperformance in the leisure division and the investment made in digital,” said Peter Birtles, Super Retail Group managing director.
“The auto and sports divisions both performed well, delivering strong like for like sales growth and lifting gross EBIT margin. The results of the leisure division reflected the weaker performance of the BCF business in the first half and the continued under performance of the legacy’s Ray’s Outdoor business,” Birtles said.
“Pleasingly, BCF performed solidly during the second half and the overall contribution from new format Rays stores is in line with expectation.”
Super Retail Group posted a segment EBIT growth of 9.0 per cent in its Auto division and 18.6 per cent in its Sports division.
The group posted a 7.1 per cent sales growth in its Leisure division, but investment in competitive pricing, inventory clearance and higher product costs resulted in its segment EBIT declining by 42.4 per cent.
The group invested $81.3 million in new and refurbished stores.
Birtles announced they plan to open around 20 new stores across the group in the coming year, in addition to the 17 Ray’s Outdoors stores that will be converted into other group brands.
Super Retail Group is the owner of Aussie brands including Amart Sports, BCF Boating Camping Fishing, Supercheap Auto, and Rays and Rebel.
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