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Super Retail profits down, but business is returning to normal

Store lockdowns and supply chain woes have cut into the profit of Queensland’s Super Retail Group.

Feb 21, 2022, updated Feb 21, 2022

The company, which owns Rebel, BCF, Super Cheap Auto and Macpac, showed how the Omicron variant was likely to play out for other stocks. The company said foot traffic was down, particularly for its rebel sports stores which were more likely to be in CBD sites and large shopping malls.

Profit was $110.8 million for the December half, a 36 per cent decline on 2021, but a 93 per cent improvement on 2020’s first half. The company also pointed out that the 2021 result was a record and was the result of a consumer boom during lockdowns.

A fully franked dividend of 27 cents a share was declared

Group sales were down 4 per cent, but online sales were up 64 per cent and 15 new stores were opened.

The company said the decrease in profits was the result of a return to a more normalised promotional environment and a more typical operating cost structure.

Also, the cost of doing business increased as it lifted investments to support growth.

“The group has also incurred additional costs associated with the pandemic, including high wages relating to the cost of retaining team members during lockdowns and the impact of the pandemic on team member availability and increased digital costs,” it said.

Managing director Anthony Heraghty said Omicron and the supply chain issues were a factor, but he said there was a “fast finish” to the half year when restrictions were eased.

He said the stronger sales had also flowed through to the current half year.

“Looking forward, the group will continue to reinvest in the business, including digital, loyalty and network to execute our strategic priorities nand grow our four core brands,” he said.

 

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