New stores drives growth for Godfreys

godfreysVacuum cleaner retailer, Godfreys, has lifted its full year profit by a third thanks to the successful rollout of new products and stores.

The retailer’s underlying net profit rose 33.7 per cent to $11.49 million in the year to June 30 from $8.6 million in 2013/14, while revenue rose 5.2 per cent to $182.6 million.

Comparative store sales were flat, which the company deemed “pleasing, given the overall softness in retail sales and deliberate strategy to change the company’s product mix to drive greater sales volume and floor value whilst lowering the average selling price.”

The company opened 12 news stores during the year, closed six stores and converted eight franchise stores to company-owned stores, taking its total store count to 212. The company aims to open a further 10 stores per year this financial year and onwards to drive growth.

Godfreys, which listed on the Australian share market in December 2014, announced a partly franked final dividend of 12.8 cents a share plus a special 2.6 cent dividend.

Its statutory net profit, which includes the cost of its share market listing plus various accounting changes and one-benefits, more than doubled to $12 million from $5.7 million.

“We are delighted to report our first result as a listed company and to have delivered on our prospectus profit forecasts,” said Godfrey’s CEO, Tom Krulis.

“One of the major themes to emerge during the year is a step change in consumer attitudes towards cleaning, with a much greater focus on ‘convenience’. Godfreys has positioned itself well to capitalise on this trend by heavily investing in product development targeting a number of innovative new convenience products, which we expect to deliver continued growth.”

The company launched a new store format called ‘We are clean’ in its Traralgon store in Victoria during the period and all new stores and store refurbishments will adopt this design.

Godfreys also opened a new 12,000sqm distribution centre in Altona, Victoria in May 2015, doubling its warehouse capacity.


You have 7 articles remaining. Unlock 15 free articles a month, it’s free.