The Warehouse Group has announced an adjusted net profit lower than last year, but which reflects the Group’s strategic reshaping with positive positioning for the future.
Adjusted net profit for the FY14 period was $NZ60.7 million, and was within the forecasted $NZ59 to $NZ62 million.
Net profit after tax was $77.8 million, while group retail sales were up by 18 per cent compared to last year.
“While our adjusted profit has reduced from the previous year, the company has been significantly reshaped and is well positioned for the future,” Ted van Arkel, The Warehouse Group chairman, said.
“The board understands that this now has to be leveraged into profit growth, and management is very focused on achieving this.”
Van Arkel said he was confident the company’s strategic focus will deliver results to the shareholders.
Sales for the year in the 91 Warehouse ‘Red Sheds’ increased by 4.7 per cent compared to the previous year.
The company said the major drivers of sales growth were the store refit and refurbishment program, better customer service, and improved private label product quality.The introduction of major brands has also had a positive impact.
Overall gross profit margin percentage was the same as last year, but was lower than planned resulting in an operating profit decline from last year.
The Warehouse Group CEO, Mark Powell, said that the company expects to see operating profit growth resume in FY15.
“The Red Sheds have now had 14 quarters of positive same store sales after many years of ongoing decline. This turnaround in customer perception has required significant investment in our stores, our products, and our people over the last three years,” Powell said.
The Group’s 63 Warehouse Stationery stores had sales increase from 8.1 per cent compared to last year. Driving growth is the rebranding of stores, together with the opening of three new stores.
Noel Leeming sales increased by 5.6 per cent for the year, with growth slowing in the fourth quarter. Torpedo7 Group sales reflected a year of change, with the business showing strong growth potential as a leading multichannel outdoor, adventure sport business. Operating profit for the year was $NZ1.1 million.
