30th March 2017
Hallenstein Glasson Holdings Limited
Results for the 6 months ended 1st February 2017
The company advises that total group sales for the 6 month period ended 1
February 2017 were $122.9million, an increase of 9.4% over the prior
corresponding period ($112.4million). Net Profit after Tax (unaudited) was
$9.185m, an increase of 34.7% on the prior corresponding period ($6.817m).
The result is in line with guidance announced to the NZX on 3 February 2017.
Gross margin on sales was 58.1% compared to 56.8% in the prior corresponding
period. This has been achieved due to an improved exchange rate and better
product cost prices achieved through negotiation. Expenses continue to be
well controlled and are in line with expectation. While Glassons saw strong
sales growth in both countries, Hallenstein Brothers and Storm saw a small
decline in sales on the prior corresponding period. There is continued
management focus on both brands and results for the start of the winter
season have already seen improvement. Ecommerce growth for the group
continued with sales increasing by 35% on the prior corresponding period.
Glassons Australia continued further expansion with the opening of a further
2 new stores, refurbishing 3 stores, and closing 2 non profitable stores in
the season. This helped drive an increase in sales of 23.3% on the prior
corresponding period, and saw the Australian chain return to profit.
Hallenstein Brothers opened 2 stores in Queensland, Australia during the
season with early results in line with expectation.
Dividend
The balance sheet continues to be robust and stock levels remain controlled.
The directors have recommended an interim dividend of 14.5 cents per share
(last year 13.5 cents per share), payable on 13th April 2017. The dividend
will be fully imputed.
Future Outlook
Total Group sales for the first 7 weeks of the 2017 winter season have been
encouraging, increasing on last year by 5%. Gross margin continues to show a
small improvement over last year. Growth in sales from ecommerce continues to
out-perform bricks and mortar, with sales for the first 7 weeks of the season
up 36%. Each chain is in a strong position going into the key winter trading
months. Mark Goddard will commence as Group CEO mid-April.
Warren Bell
Chairman
+64 21 220 7254
End CA:00299042 For:HLG Type:HALFYR Time:2017-03-30 08:49:29