Briscoe Group (BGP) H1 2024 earnings summary

Executive summary

• Achieved record half-year sales of $372.1m, up 0.77% year-over-year, despite tough economic conditions.

• Net profit after tax (NPAT) was $33.21m, down 22.31% due to a $7.4m one-off non-cash tax adjustment; underlying NPAT was $40.6m.

• Homeware sales rose 0.28% to $230.0m; Sporting Goods sales increased 1.58% to $142.1m.

• Online sales comprised 18.77% of total sales, with the customer database exceeding 2 million.

• Interim dividend maintained at 12.5cps, with a payout policy of at least 60% of NPAT on a full-year basis.

Financial highlights

• Gross profit margin was 42.97%, down from 43.73% year-over-year but above pre-Covid levels.

• EBIT for the half was $60.5m, representing 16.3% of sales.

• Cash balances increased to $131.8m; inventories decreased by 11.55% to $106.3m.

• Free cash flow for the half was $3.0m.

• Basic earnings per share were 12.8cps (excluding tax adjustment); reported EPS was 14.91c.

Outlook and guidance

• Strategic plan refreshed for 2024–2027, focusing on growth, supply chain transformation, and retail experience evolution.

• Management remains cautious about the retail environment, expecting continued economic headwinds for the remainder of the year.

• Full-year NPAT is not expected to match last year's $84.2m, but a strong result is still anticipated.

• Major supply chain investments on track, with new Auckland DC construction starting in 2025.