The owner of Briscoes homeware and Rebel Sport said both brands delivered positive sales growth, though trading conditions were expected to remain tough.
“Looking forward we do not underestimate just how tough trading will continue to be with the first half expected to be especially challenging,” managing director Rod Duke said.
“We expect this will see second half profitability exceed that produced for the first half in a return to a more normalised shape of profitability.
“We are hopeful that the economic recovery will gradually emerge as the year continues, which will assist us to achieve our goal of protecting this year’s level of profitability.”
Board chairwoman Dame Rosanne Meo said the full-year result reflects one of the most challenging retail environments seen in New Zealand for many years.
“In this marketplace to be within 0.06% of last year’s record sales, to manage costs to be only 1.11% higher than the previous year and to reduce inventory by a further $5m is frankly, a remarkable performance.”
Mr Duke said the company would focus on cost control and to maintain gross profit margins at current levels.
“The Group’s full-year result was negatively impacted from KMD Brands Limited’s decision to not pay any dividends during the year.”
Key numbers
For the 12 months ended January compared with a year ago.—
• Net profit *$60.6m v $84.8m (*includes $7.4m non-cash tax adjustment).
• Dividend from investment in KMD Brands: nil v $2.9m pre-tax.
• Revenue $791.5m v $792.0m.
• Gross profit margin 40.37% v 42.40%.
• Full year dividend 22.5c per share v 28.5c per share.
