Briscoe chief attributes strong growth to smart thinking

Briscoe Group Ltd has come out well ahead in a year which group managing director Rod Duke said had been challenging for many retailers.

The company increased net profit by 26% to $59.4 million, or by 20% after excluding a property sale & subsequent tax adjustment.

Mr Duke said: “The focus we place on managing & improving our retail brands underpins our strong profit growth of recent years, as we continually drive to improve the way we do things in every area of the business. This year’s result represents an increase of 77% over the result posted just 3 years ago at a compound annual growth rate of 21% for the same period.”

“The group’s gross profit margin for the year increased from 40.49% to 41.07%, reflecting the continued focus the group has on inventory & promotion management. The ongoing refinement of product ranges, careful foreign exchange management, enhancements to inventory allocation processes and improvements in the analysis of promotions & store inventory are all important factors in protecting & growing gross profit margin.”

“Our online business saw strong sales growth during the year, and process reviews across all service areas has resulted in improved order picking accuracy, reduced backorders, quicker picking speed & faster dispatch times, delivering a better service experience for our growing number of online customers.

“Online sales growth was in excess of 40% and accounted for over 6% of group sales for the year, with strong growth anticipated to continue for the foreseeable future. We remain committed to continual improvement of the overall shopping experience.

“While Rebel Sport has continued to benefit from the popularity of ‘athleisure’ products, there are now more mainstream competitors in this sector. To combat this increased competition, the Rebel Sport merchandising team are working closely with our supply partners to ensure we have the best range of products from the best brands.

“In addition to continuing work in relation to completing the group-owned property projects commenced during the year, the store development team have a number of projects planned to reconfigure or refurbish a number of stores across the group. 3 new online fulfilment sites will be established in existing stores, which will alleviate pressure as well as build capacity for further online growth.”

Highlights for the full year ended 29 January:

  • Total sales, $582.84 million, up 5.4%
  • Same-store sales growth (adjusted for prior year 53rd week), up 4.9%
  • Gross profit, $239.36 million, up 6.9%
  • Gross profit margin 41.1% (40.5%)
  • Ebit $79.83 million, up 21.1%
  • Net profit after tax, $59.42 million ($47.1 million), up 26.1
  • Basic earnings/share 27.2c (21.7c)
  • Diluted earnings/share 26.5c (21.2c)
  • Final dividend, 11c gross, fully imputed, up 15.8%
  • Total dividend for the year 18c/share, up 16.1%

The result included a $2 million gain from the sale of property in Hastings and also the subsequent $790,000 deferred tax liability reversal in relation to this property created in 2011.

Excluding these adjustments, net profit after tax for the full year was $56.7 million, up 20.3%.

The result included $4.4 million of dividends from the group’s 19.9% shareholding in Kathmandu Holdings Ltd.

Attribution: Company release.

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