Briscoe Group (BGP) H2 2025 earnings summary

Executive summary

• Full-year sales reached $791.5 million, just 0.06% below last year's record, with strong cost control and inventory reduction achieved despite challenging market conditions.

• Net profit after tax (NPAT) was $68.0 million excluding a one-off $7.4 million tax adjustment; reported NPAT after adjustment was $60.6 million.

• Online sales grew to 19.69% of total sales, up from 18.72% last year, supported by new digital initiatives and platform upgrades.

Financial highlights

• Gross profit margin declined to 40.37% from 42.40% year-over-year, but remains 0.94 percentage points above pre-COVID levels.

• Total costs increased by only 1.11% despite a 6% wage increase and higher operating expenses.

• Inventory at year-end was $99.7 million, $5.2 million lower than last year.

• Cash and bank balances stood at $142.4 million with no term debt.

Outlook and guidance

• Margin pressure expected to persist due to economic headwinds and a weaker NZ dollar, but initiatives are in place to stabilize gross margin.

• Second half profitability is expected to exceed the first half, with gradual economic recovery anticipated.

• Strategic investments in distribution, online platforms, and flagship stores are expected to drive growth over the next three to four years.