@KloggThey ran 2 DCs in H2 FY19 and GM dropped from 61% to 54%....

@Klogg
They ran 2 DCs in H2 FY19 and GM dropped from 61% to 54%. They attributed 20% of the drop in GM in that particular half directly to running 2 DCs (or ~1.5% GM) and no doubt there was additional GM impact from all the vouchers and refunds in the midst of major delays during Melbourne's lockdown and its effect on the new DC. There is then the additional CODB from the warehouse space.
You have to remember that overall, once the DC is actually operational, there should be actually be an improvement in margins, which maybe as early as H1FY23.

There is also the wildcard of Focus. The 2.8m EBIT is off 12.5m in revenue. They assumed 12m in EBIT off 150m in revenue in the acquisition. If we assume 15% EBIT margins instead (halfway between the 22 reported here and the 8% assumed), there is an additional 10m in EBIT as well.