WHS
13/09/2013 08:30
FLLYR
REL: 0830 HRS The Warehouse Group Limited
FLLYR: WHS: 2013 Full Year Results Announcement and Presentation
THE WAREHOUSE GROUP LIMITED
Results for announcement to the market
Reporting Period: 30 July 2012 to 28 July 2013
Previous Reporting Period: 1 August 2011 to 29 July 2012
CONSOLIDATED OPERATING STATEMENT
2013 Full Year Performance
REVENUE: $2,239.532 million versus $1,732.168 million in 2012, an increase of
29.3 %
OPERATING PROFIT: $111.238 million versus $96.462 million in 2012, an
increase of 15.3 %
EARNINGS BEFORE INTEREST AND TAX: $189.714 million versus $125.244 million in
2012, an increase of 51.5 %
PROFIT BEFORE TAX: $178.039 million versus $114.936 million in 2012, an
increase of 54.9 %
PROFIT ATTRIBUTABLE TO PARENT SHAREHOLDERS: $144.748 million versus $89.848
million in 2012, an increase of 61.1 %
EARNINGS PER SHARE: 46.7 cents per share versus 29.0 cents per share in 2012,
an increase of 61.0 %
Final Dividend: 5.5 cps
Record Date: 29 November 2013
Date Payable: 12 December 2013
Tax credits on final dividend: Fully imputed for New Zealand residents;
Supplementary dividend payable to non-residents.
RESHAPED WAREHOUSE GROUP REPORTS DOUBLE DIGIT PROFIT GROWTH
Total Group sales for the full year up 29.3% to $2.24 billion
Adjusted NPAT up 13.1% to $73.7 million
Reported NPAT up 61.1% to $144.7 million
Final Dividend of 5.5 cents per share
Auckland, 13 September 2013
The Board of The Warehouse Group today announced that adjusted net profit
after tax1 for FY13 increased 13.1% to $73.7 million compared to $65.2
million last year. Reported net profit after tax was $144.7 million, an
increase of 61.1% compared to $89.8 million last year primarily due to gains
on the disposal of property. Group sales for the year were $2,239.5 million
up 29.3% compared to last year.
The Warehouse (Red Sheds)
The Warehouse (Red Sheds) reported sales for the full year of $1,591.1
million an increase of 4.4% or $67 million compared to last year and up $128
million since FY11. Same store sales increased 2.0% in the year with the
'Red Sheds' now recording 10 quarters of positive same store sales. Sales in
the second half were $724.5 million, an increase of 5.2% with a same store
sales growth of 1.9%. Same store sales in Q4 were 1.9%
The major drivers of sales growth in FY13 have been, The improved performance
from Auckland stores with three new stores ( Silverdale, Royal Oak & Mt
Roskill), The completion of 28 store refits by the end of FY13, and Strong
performances in our Home, Consumer Electronics, Baby, Beauty, and
Confectionery categories. We also introduced a number of international
technology and appliance brands into the 'Red Sheds' late in H2 such as
Compaq, Acer, Sony, Uniden, Kambrook, and Hoover. A range of products from
leading International brand Samsung will be launched in September. The
Warehouse sells a wide range of products across a number of categories at
different points in their lifecycle. Consequently sales growth in some areas
was partially offset by a continuing structural decline in CD & DVD sales.
FY13 was also impacted by the removal from sale of some of our whiteware
range while we sourced better quality products.
In spite of one of the warmest winters on record gross margins were up 1.3%
to 36.3% their highest in several years.
Commenting on The Warehouse (Red Sheds) result Group Chief Executive Officer
Mark Powell said "It was a solid result with 10 quarters of positive same
store sales and the introduction of a number of leading International
Technology & Appliance brands. While operating profit for the year was up
5.3% to $85.2 million, which indicates we are starting to head in the right
direction, it is still early days on our journey. We will continue to invest
in store refits and our people in FY14."
Warehouse Stationery
Warehouse Stationery sales were $231.8 million, an increase of 12.2% compared
to last year. Same store sales increased 2.8% for the year. The second half
saw sales of $119.9 million up 12.6% and same store sales growth of 1.4%.
Same store sales in Q4 were 1.0%.
Warehouse Stationery underwent a significant rebranding in July which will
help bring to life, across all areas of the business, the brand positioning
"Work, Study, Create, Connect". The year saw another 5 stores opened as part
of the continued rollout of a nationwide store network with operating profit
for the year up 4.8% to $10.3 million.
Noel Leeming
Noel Leeming's results from continuing operations for the eight months under
The Warehouse Group ownership were sales of $390.7 million, Operating profit
of $11.0 million and a same store sales growth of 7.0%. The second half saw
sales of $273.5 million and a same store sales increase of 6.4%. Same store
sales in Q4 were 6.8%.
Mr Powell said that "Merging Bond & Bond with Noel Leeming went extremely
well and Noel Leeming continues to perform ahead of our expectations".
Torpedo7 Group & Multichannel
During the four months, Torpedo7 Group sales were $24.2 million and EBIT of
$0.7M in line with our expectations. A strategic plan has been developed
targeting significant growth for the Torpdeo7 Group which resulted in the
recent acquisition of No1 Fitness, NZ's leading multichannel fitness
equipment retailer.
"We will continue to invest ahead of the curve in our Multichannel business
with our two most recently launched sites being knucklebone.co.nz (outdoor
sporting products) and ilovebeauty.co.nz (branded beauty products) and we
continue to be excited by the growth opportunities we see" said Mr Powell.
The Warehouse Group
In announcing the result, The Warehouse Group Chairman Graham Evans said
"While it is still early days we have made good progress on the
transformation of The Warehouse Group, which is now a reshaped company
compared to two years ago. The Group's strategy has evolved and comprises a
number of key focus areas including, Keeping the "Red Core" strong, Growing
"Non Red" to be as large as "Red", Being the leading Multichannel retailer in
NZ and Leveraging our Group Competencies and Scale. The Board is confident
this strategic focus will continue to deliver results for our shareholders."
"As our earnings are significantly influenced by Christmas trading
performance it is too early to provide specific earnings guidance. The key
elements of the Group's strategic plan should ensure adjusted NPAT in FY14 is
above that recorded in FY13" said Mr Evans".
The Directors have declared final dividend of 5.5 cents per share,
representing 89% of adjusted earnings, which will be paid on 12 December 2013
with the record date being 29 November 2013.
ENDS
1 A reconciliation of adjusted net profit to reported net profit is detailed
on page 18 of the NZX release and in note 13 of the condensed interim
financial statements. Certain transactions such as the sale of properties,
acquisition costs and the release of warranty provisions can make the
comparisons of profits between periods difficult. The Group monitors adjusted
net profit as a key indicator of performance and uses it as the basis for
determining dividends and believe it helps investors to understand what is
happening in the business.
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 92 Warehouse stores, 75 Noel Leeming
stores and 61 Warehouse Stationery stores in New Zealand and several online
businesses. The company had turnover of $2.2 billion in FY13 and employs
over 10,000 people.
Contact details regarding this announcement:
Investors and Analysts
Stephen Small
Chief Financial Officer
Cellphone: +6421 714159
Media
Mark Powell, Group CEO, to be contacted via Gayle Theunissen on +649 489 8900
X96333 or +6421 742784
End CA:00241066 For:WHS Type:FLLYR Time:2013-09-13 08:30:09
