Briscoe Group owns the Briscoes homeware stores and Rebel Sport. Photo: RNZ
Retailer Briscoe Group has announced a record full year profit driven by a strong second half, but is warning of tougher times ahead.
Key numbers for the 12 months ended January compared with a year ago:
- Net profit $88.4m vs $87.9m
- Revenue $785.9m vs $744.5m
- Gross margin 44% vs 45.8%
- Final dividend 16 cents per share vs 15.5 cps
[Ll] Inventories $117.8m vs $119.5m
The company, which owns the Briscoes homeware stores and Rebel Sport, said producing a result ahead of last year's record was a significant achievement.
Second half performance improved as it avoided a repeat of the forced store closures in 2021 due to Covid restrictions.
"We're delighted to have produced a second half performance which has not only made up the narrow profit deficit from half year, but also enabled us to post another full year record sales and profit performance," group managing director Rod Duke said.
"We have a very strong core business which continues to prove its resilience amidst the varied challenges faced by the group across recent years."
The company's gross margin percentage fell, despite margin dollars increasing by $5.3 million.
"We are seeing margin pressure as the impacts of the economic downturn are felt and the tightening of the retail sector squeezes margins in order to be more competitive," Duke said.
He said the company put in a lot of energy to protect as much of the 633 basis points gained in gross profit margin over the past two years.
Online sales performed strongly, with online revenue making up 19 percent of total sales - lower than the previous year, but significantly better than pre-Covid levels.
Despite the improved overall result, Duke said the retail sector would remain "highly sensitive" amid the economic uncertainty, cost pressures, higher inflation and political uncertainty.
"We do not underestimate just how challenging trading could be and currently expect it to be difficult for the group to replicate this year's record profit result," he said.
Briscoe Group chairperson Dame Rosanne Meo said the results highlighted its ability to navigate difficult trading conditions.
"However, we are acutely aware that these challenges remain ongoing and there continues to be a high level of uncertainty in the trading environment," Dame Rosanne said.