Hallenstein Glasson’s chairman, Warren Bell, has tempered shareholder expectations after reporting a 32 per cent increase in profits.

In an update for the six months ending February 1, the owner of Glassons and Hallenstein Brothers recorded $230 million (NZ$275 million) in sales, up from $200 million on the prior comparable period.

This led to $23.4 million in after-tax profits for the period, a figure which the group’s chairman described as “pleasing”.

“The results to date should not be viewed as indicative of the rest of the season as we enter the more significant sale periods, including Easter and school holidays,” Bell said. “It will be much more difficult to replicate the current growth in the months ahead.”

The Australian Glassons business was the group’s biggest earner, contributing $127.7 million in sales for the period. All segments of the group grew their sales year-on-year, with the Hallensteins business seeing the largest growth in its profits, jumping by 76.5 per cent.

“We are also conscious of the current geo-political tensions and impact these can have on nearly all areas of our business going forward in a manner we currently cannot predict,” Bell added. “The likely increase in the cost of living in the markets in which we operate and interest rate increases can have a strong influence on consumers’ discretionary spending patterns, which can directly impact sales.

“Impacts are also likely on foreign exchange, logistics and associated fuel and transportation costs, and other increased costs of doing business, all of which could directly impact our bottom-line profits,” he concluded.