WHS - Warehouse Group

[bull....]

Personally the most disappointing part of the result, almost all that cash on hand gone by now.

yep but post lock - down they make it back pretty quick and they get the brand loyalty by not taking the wage subsidy. ie briscoes has the same policy , branding far outweighs a few dollars in wage subsidy esp if you dont need it.

[Balance]

well done whs

beat on npat of 175 and 30cps full year divs puts it on 10% gross yield ( i didnt include the special div of 5c as it was a one off) so there is potential for increased regular divs going forward if you apply there 70% of npat formual

wow pretty good compared to the bank.

Ramper Alert - bullxxxx - be aware.

[LaserEyeKiwi]

Personally the most disappointing part of the result, almost all that cash on hand gone by now.

Eh? You realize most of the country exited lockdown weeks ago right?

[winner69]

warehouse hasnt even applied for the wage subsidy for the current lockdown , they say cash position is strong we dont need it. wonder if HLG is doing the same?

HLG already have got some but not let's go there

[allfromacell]

Eh? You realize most of the country exited lockdown weeks ago right?

Just going off the presentation: "The Group’s cash deposits have reduced significantly since balance date as a result of the decreasedsales but the Group’s bank debt facilities remain undrawn."

[winner69]

Hope the usual 'pent up demand' trick plays out again

FY22 sales for the first 8 weeks of the financial year were down 22% compared to the same period in
FY21.

And analysts weren't expecting much growth in F22 (before lock downs were known) and were saying F21 ws really a one off

[Beagle]

A lot to get through but these are my first impressions

Normalised net profit exceeded my expectations at just on $175m and amounts to eps of 50.6 cps

Gross profit percentage up 380 basis points WOW !!

Final dividend declared of 17.5 cps (fully imputed) bringing the total to 35.5 cps, just a fraction over the 70% minimum of normalised eps is as per expectations and prudent given post balance date lockdown
35.5 cps fully imputed (35.5 / 0.72) = 49.31 cps gross which on a $4 share price gives gross yield of 12.3%.

Net cash balance was strong at $160.5m, (no debt) despite inventory being up nicely and they seem well positioned for the busy Christmas trading period

Stock turn increased to 5.3 times which is very impressive from 4.4 times last year, (this is a real highlight as it shows their stock selection and management has really improved. Aged inventory down nicely in line with this improvement)

8 new store within a store initiatives during the year bringing the total SWAS to 25.

Reduced store footprint, down 5 stores as they look to optimize their retail footprint.

CODB (Cost of doing business) down 180 bps is very impressive

Current lockdown is hurting with FY22 YTD sales down 22%.

Those with a negative bias will focus on the negative...as for me I am a happy holder and happy to hold through the challenges presenting in the short term believing that we will get back to retail normality sometime soon.

[winner69]

Just going off the presentation: "The Group’s cash deposits have reduced significantly since balance date as a result of the decreasedsales but the Group’s bank debt facilities remain undrawn."

At least shareholders are getting $60m of it

[Beagle]

Been carbon neutral since 2019. That's bound to impress the ESG enthusiasts. Lots of talk about sustainability and affordability going hand in hand. Plenty of giving back to the community, supporting worthy causes, repaying the $67m wage subsidy and all sorts of other feel good ESG stuff.

[Neophyte]

Initial thoughts on first skim of the result is impressive. The increased margins across all four divisions is huge, especially the red sheds where operating profit margin grew 720 bps resulting in the additional $130m profit from an extra $100m sales

People will hang on the 22% sales decrease but IMO this is good news as its not a big drop considering the country was in lockdown, if 'worse case' earnings drop 20% for the year its c. $140m NPAT giving P/e of 10 - still cheap as and no one would expect it to continue as we come out of lockdowns with the boarders closed and huge amounts of discretionary cash floating around