Hallenstein Glasson (HLG) H2 2024 earnings summary

Executive summary

• Group sales for FY24 reached $435.6 million, up 6.3% year-over-year, with improved gross margin despite a challenging retail environment in Australasia.

• Net profit before tax rose 14.7% to $52.1 million; net profit after tax was $34.5 million, including a $1.1 million non-cash deferred tax expense.

• Strong balance sheet with cash of $45.9 million, up $13.4 million from the previous year.

Financial highlights

• Gross margin increased to 59.4% from 57.3% last year, driven by new suppliers, lower freight costs, and better stock management.

• Inventory levels tightly managed, improving stock turn and liquidity.

• Online sales accounted for 18.2% of total sales, stable year-over-year.

Outlook and guidance

• First eight weeks of FY25 saw group sales up 10.9% year-over-year, mainly from Australia, but not indicative of peak period expectations.

• New Zealand market remains challenging due to economic conditions and cost-of-living pressures.

• Continued focus on operational efficiencies, flexible product offerings, and new store opportunities for growth in 2025.