The real question now is, how will mr market feel?
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$20m profit is a solid result, 28% above prior year. What’s more amazing is this:
Online sales continue to play an integral part and account for 24% of sales in the first half.
I don't know how anyone thinks a 28% growth in net profits on the back of a 13.6% increase in revenue is anything but an an excellent result. A 13.6% revenue growth rate while sales were still impacted by lockdowns is fantastic, and the fact that net profit growth was double that growth rate shows fantastic operating leverage and superb management.
I didn't realise they had 11 stores in Melbourne already, its a shame they have been impacted by lockdowns of course, but that geographic growth across OZ has been excellent.
bit like the warehouse where noel leeming is the star , glassons is the star at this company.
As mentioned earlier on this thread the real reason halleinsteins is under going transformation is because they have lost some of there market. it is now known as the crinch brand in certain age segments.
anyway
net profit up nicely , making the most of increasing margins like most retailers.
The part that is confusing for me is 4.5 million in wage subsidies and rent relief from the Australian Business. This in theory makes up 23 percent of the profit.
Therefore I'm looking at a 13 percent increase in revenue with no corresponding increase in profit. Suddenly doesn't look so amazing.
I bought in to HGL for the yield and good yield is very hard to find at the moment. This update reassures me divedends will continue to be paid, but doesn't inspire me there is massive earnings growth coming.
Sold $21.7m more than pcp - say gross margin up $13.0m
But npat up $5.6m. This implies expenses are up about $8m (+11%) in spite of $4.5m of Australian corporate welfare and an undisclosed amount of rent relief.
Something don't really stack up but we'll have to wait until the financials come out to try to work it out.
Once again I've got it all wrong
But at least the Balance Shet remains strong