Revenue from the Briscoes homeware brand increased by 2.7 percent to $228.7 million. (File image) Photo: RNZ
Homeware and sports goods retailer Briscoe Group could not match last year's record interim result as it faced supply chain disruptions and labour shortages.
Key numbers for the six months ended July compared to a year ago:
- Net profit $45.6 million versus $47.5m
- Revenue $367.9m versus $358.4m
- Interim dividend 12 cents a share versus 11.5 cents per share
[Ll] Operating income $70m versus $73m
Briscoe Group managing director Rod Duke said posting a profit only 4 percent below the record first-half result of last year was pleasing, considering the impact from the Omicron outbreak and the fall in economic sentiment.
"We have previously flagged that the way profit falls this year between the first and second halves may be quite different to last year given the significant impacts and timings associated with supply chain disruptions, team availability and the significant number of trading days lost through store closures between August and November 2021," he said.
Revenue from the Briscoes homeware brand increased by 2.7 percent to $228.7 million, while Rebel Sport sales rose 2.5 percent to $139.2m.
Briscoe Group chair Dame Rosanne Meo said the half-year result was "outstanding" amid headwinds.
"The agility and resolve shown by the leadership team in the face of these challenges has been impressive not only with the result that has been produced but also in relation to the support and care provided across the entire Briscoe Group team."
The company's gross margin percentage declined from 46.5 percent to 45.6 percent.
"Like all retailers, we are facing margin pressure from a number of factors including ongoing supply chain disruption and cost increases, a weaker New Zealand dollar and declining consumer confidence on the back of significant cost of living increases," Duke said.
The business increased wage rates for its in-store hourly-paid team by 7 percent from April.
"We are very mindful of the impact on all our team from the current public health situation as well as from declining economic factors in an employment market which is clearly under significant pressure," Duke said.
"We continue to provide support in the form of paid leave for Covid-related absences, over-and-above existing entitlements."
The company is forecasting full-year profit to be ahead of the $87.9m it reported last year.