That includes the $68 million wage subsidy they paid back though right?
(I do hold a small amount of WHS)
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Yeah the wage subsidy pertained to a previous trading period so its more than reasonable to normalise profit for that and there were restructuring costs of (from memory $11m) which relate to the redundancy of about 600 staff which will confer operational efficiencies looking forward.
For me, I am always looking forward to what is going to move the needle on share prices so adjusting for prior period matters and one off redundancies is more than fair and reasonable.
I like the momentum WHS have but I also really like the consistent way HLG are growing their Glassons brand.
Warehouse, Briscoes and Premier(rag trade Oz) stellar results mainly driven with exceptional increases in Gross Margin (% to sales)
Results were
Warehouse 36.2% up 260 basis points
Briscoes 43.8% up 440 basis points
Premier 65.4% up 286 basis points
Wonder what HLG gross margin % will be tomorrow - probably less than last year - based on sales growth should have generated 10m after tax profit but guidance has profit only up 5m
Be interesting to see
They have commented previously that airfreight costs would impact gross margin. Its clear many here (including myself) have underestimated the effect of this.
I'm still expecting a solid result within the guidance range previously given, a really good dividend and a strong balance sheet with no debt and heaps of cash.
My pick is 25 cps (fully imputed as usual) for the dividend. Lets see how close to the mark I am.
MR B is back with a vengeance and after KMD's performance and we sold to many to soon HLG has now got some competition from the RAG and BAG Trade.
You're forgiven. I seem to recall you were focused on the weight of the bikinis those hot young things were modelling on the website, and failed to recognise that not all of HLG's merchandise (they call it murch these days apparently) is so minimalistic...easy mistake ;-)
Results out, I like how the announcement title says “HGH Ltd”, HGH and HLG merger soon? 😂
23c dividend! gobble gobble gobble
http://nzx-prod-s7fsd7f98s.s3-websit...763/343160.pdf
https://www.nzx.com/announcements/369763
Net profit after tax at the upper end of guidance range. Dividend of 23 cps fully imputed similar to my expectations noted above.
Sales growth in the 7 weeks to date of 17.8% (despite lockdowns) is very good and will no doubt grow further as we lap the extensive lockdown that occurred in late March and April last year.
Balance sheet remains strong and they are well positioned. Extra freight costs have hit them as noted in the report and I see this as a one-off item.
Growth in Glassons Australia is deeply impressive and even more notable on a divisional performance their profitability was nearly double Glassons N.Z. despite only having slightly more sales.
More than half the current periods profit came from Glassons Australia despite this accounting for just over one third of total sales, (no wonder they are looking to expand there), and I see a huge runway for growth there with current market penetration probably around only one fifth of what it is here.
Solid result in what were difficult conditions with freight and logistical matters. I expect very good things from this company going forward. I know some other retailers have coped better with freight and logistical challenges in the period under review and expanded gross margin and good on them I say. I'm not sending this well managed company on attractive metrics to the sin-bin for one period where they could have performed more optimally.