WHS
08/03/2013 08:30
HALFYR
REL: 0830 HRS The Warehouse Group Limited
HALFYR: WHS: The Warehouse Group 2013 Interim Results Announcement
THE WAREHOUSE GROUP LIMITED
Results for announcement to the market
Reporting Period: 30 July 2012 to 27 January 2013
Previous Reporting Period: 1 August 2011 to 29 January 2012
CONSOLIDATED OPERATING STATEMENT
2013 Half Year Performance
REVENUE
$1,109.174 million versus $937.941 million in 2012, an increase of 18.3 %
OPERATING PROFIT
$76.973 million versus $67.941 million in 2012, an increase of 13.3 %
EARNINGS BEFORE INTEREST AND TAX
$140.076 million versus $76.725 million in 2012, an increase of 82.6 %
PROFIT BEFORE TAX
$135.105 million versus $71.301 million in 2012, an increase of 89.5 %
PROFIT ATTRIBUTABLE TO PARENT SHAREHOLDERS
$106.319 million versus $54.040 million in 2012, an increase of 96.7 %
EARNINGS PER SHARE
34.3 cents per share versus 17.5 cents per share in 2012, an increase of 96.0
%
Interim Dividend: 15.5 cps
Record Date: 22 March 2013
Date Payable: 28 March 2013
Tax credits on interim dividend: Fully imputed for New Zealand residents;
Supplementary dividend payable to non-residents.
THE WAREHOUSE GROUP ANNOUNCES INTERIM RESULTS
Total Group sales for the half year up 18.3% to $1.1 billion
Reported NPAT up $52.3 million to $106.3 million
Adjusted NPAT up 13.2% to $52.9 million
Interim Dividend of 15.5 cents per share declared
Auckland, 8 March 2013 - The Board of The Warehouse Group today announced a
reported net profit after tax of $106.3 million, up 96.7% compared to $54.0
million last year. Adjusted net profit after tax (1) for the period was
$52.9 million compared to $46.7 million last year, up 13.2%.
Group sales for the half year were $1,109.2 million, up 18.3% compared to the
first half last year. Sales excluding Noel Leeming Group Limited were $979.8
million, up 4.5% on the prior comparable period.
The Warehouse (Red Sheds) reported sales of $866.6 million up 3.7% compared
to the first half last year. Same store sales were up 2.1% for the half and
3.3% for the second quarter. Key growth categories were Consumer
Electronics, Health & Beauty and Women's Apparel together with summer
categories such as gardening. Operating profit for the half year was up 5.8%
to $65.7 million from $62.1 million.
Commenting on The Warehouse (Red Sheds) result Group Chief Executive Officer,
Mark Powell said "The continuation of sales growth together with gross margin
improvement is pleasing. While still early in our multi year transformation
we are pleased with the results of investments in our stores and people. We
plan to accelerate the number of store refits this calendar year to 24 and
will continue to invest ahead of the curve in the multichannel area."
Warehouse Stationery sales were $111.9 million up 11.8% compared to last
year. Same store sales were up 4.2% for the half and 4.7% in the second
quarter. Operating profit for the half year was up 17.9% to $3.7 million,
demonstrating positive sales leverage. Warehouse Stationery continues to
experience sales growth from retail footprint expansion and improved earnings
performance from existing and recently opened stores.
Following the acquisition of Insight Traders, with the recently announced
agreement to acquire a majority shareholding in Torpedo7, the Group continues
to expand its multichannel channel capability both organically and through
acquisition. The Warehouse's online sales were up 136% in H1 with the launch
of the "Red Alert" daily deal site in Q1, our extended online range of 1
million books in Q2 and essentially the entire Red store (55,000 Sku's) now
available online.
The Noel Leeming Group had a good result with sales for the two months of
$129.3 million and EBIT of $5.8 million (at the top end of guidance of $4 - 6
million). We announced today the Bond + Bond store network is to be merged
into the larger Noel Leeming retail brand. Mr Powell said "The Noel Leeming
leadership team has determined that Bond + Bond is not sufficiently
differentiated, and has too few stores, to operate separately. The change
will create a clear focus and allow us to invest fully where we see
opportunity and growth for Noel Leeming." With non-management store staff
being offered comparable roles in Noel Leeming stores there are expected to
be minimal job losses. The goal is to have the merger between the Bond +
Bond and Noel Leeming retail brands complete by early April 2013.
In line with our property strategy The Warehouse Group also advises that it
will commence the marketing of the Silverdale Retail Complex and we
anticipate that the sale will be completed prior to the end of FY13.
In announcing the result, Chairman Graham Evans says "It is pleasing to see
the Group's strategy deliver improved results for shareholders. While it is
early days since the acquisition of Noel Leeming Group, we are seeing the
benefits expected from the transaction both in Noel Leeming and across the
Group. Our focus on multichannel and our recently announced agreement to
acquire a majority shareholding in Torpedo7 should position us for
significant online sales and earnings growth in the medium term."
Subject to any material change in anticipated trading conditions, the
Directors expect adjusted net profit after tax for the full year to be
between $73.0 million and $76.0 million, up from $65.2 million a year ago.
The Directors have declared an interim dividend of 15.5 cents per share,
representing 90% of adjusted earnings, which is 2 cents more than last year's
interim dividend.
Dividends will be paid on 28 March 2013 with the record date being 22 March
2013.
(1) A reconciliation of adjusted net profit to reported net profit is
detailed on page 8 of the NZX release and in note 13 of the condensed interim
financial statements. Certain transactions such as the sale of properties 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.
ENDS
Background: The Warehouse Group Limited
The Warehouse Group Limited comprises 92 Warehouse stores, 75 Noel Leeming
stores and 59 Warehouse Stationery stores in New Zealand. The company had
turnover of $1.7 billion in F12 and employs over 10,000 people.
Contact details regarding this announcement:
MEDIA
Mark Powell, Group CEO to be
contacted via Gayle Theunissen on
Phone: +649489 8900 extension 96333
Cellphone: +6421742784
INVESTORS AND ANALYSTS
Stephen Small
Chief Financial Officer
Cellphone: +64 21 714 159
End CA:00233911 For:WHS Type:HALFYR Time:2013-03-08 08:30:07
