Retailer Briscoe has delivered a strong half-year result,
with boosted revenue, profits and profit margins, in part
underpinned by a $1.34 million insurance payout.
Earnings to July were up 6.4% from $217.3 million a year ago
to $231.4 million, earnings before interest and tax (ebit)
rose 25.1% from $19.9 million to $24.9 million and after-tax
profit was up 23.7%, from $14.9 million to $18.4 million.
While Briscoe's ebit and profit was boosted $1.34 million
from a Christchurch-related business interruption insurance
payout, without that claim ebit and profit were still up
18.42% and 17.26% respectively.
Group managing director Rod Duke said the gross profit margin
percentage increased from 39.18% to 39.60%, reflecting the
continued strength of the New Zealand dollar and ongoing
improvements to the effectiveness of marketing strategies.
''These factors are more than offsetting the high levels of
competitiveness across the retailing sectors in which the
group operates,'' he said.
Briscoe shares were up 3.5% to a record $3 following the
announcement, have gained more than 20% this year.
Forsyth Barr broker Haley Van Leeuwen said the result was
''marginally ahead'' of expectations.
Excluding the one-off insurance payout, profit was up more
than 17%, ''driven by a solid performance in homeware and a
very strong result at Rebel Sport.
''Rebel Sport had a strong margin lift, exceeding our
forecast, and same-store sales growth of 9%,'' Ms Van Leeuwen
''We expect another strong result in full-year 2015, with
growth driven by refurbishments and expansion of existing
stores, footprint expansion and continued operational
efficiencies across the group,'' she said.
Craigs Investment Partners broker Peter McIntyre said it was
a ''strong result'', led by Rebel Sport; highlighting same
store data was 6.28% growth.
Briscoe had been ''innovative and agile'', in closing the
difference in price margin for the public between going
online or visiting a store to make a purchase.
''They've come out with effective pricing, being innovative
and agile in the very competitive retail space,'' Mr McIntyre
Store numbers were unchanged at 78, but a new Rebel Sport is
to be opened in Wellington, with some shifts and
refurbishments across other stores later this year.
Mr Duke said inventory levels were $4.08 million higher, at
$73.24 million, than a year ago, but that was because of
holding additional stock with one new store, ''significant
increases'' in online sales and increased levels of directly