Macpac in growth mode under Australian ownership
Macpac is still delivering better results than expected for its Australian owner Super Retail Group, which wants to keep expanding the outdoor equipment chain across Australasia.
The retailer’s sales were up 7.3 per cent on a like-for-like basis at A$119.3 million ($125.6m) in the year ended June 30, and delivered earnings before interest, tax, depreciation and amortisation of A$17.4m, more than the $16m management budgeted for.
That was the first full year for Macpac under the Super Retail umbrella since it was bought in March 2018 for $144m and joined Supercheap Auto and Rebel Sport in Australia, and boating, camping and fishing chain BCF.
Super Retail has since opened 16 more Macpac stores and rebranded nine Ray’s sites under the Macpac badge. Of its 70 stores, 34 are in Australia.
“The group believes Macpac is now well-positioned to grow profitably and to expand its store network in Australia and New Zealand,” Super Retail’s annual report said.
Macpac’s sales in the first six weeks of the current financial year are 3 per cent below where they were a year earlier, which the company said reflected a shift in the timing and duration of its winter promotions.
Macpac’s annual sales growth was slightly behind that of larger rival Kathmandu Holdings, which lifted revenue 9.6 per cent in the year ended July 31, due largely to faster sales growth in Australia.
New Zealand statistics show the annual value of recreational goods retail sales rose an annual 2.4 per cent to $2.42 billion in the March year, while the volume of sales was up 2.7 per cent.
At a group level, Super Retail reported an 8.6 per cent increase in statutory profit to A$139.2m, as smaller restructuring costs more than offset a higher bill to compensate underpaid staff and losses on some divestments. Group sales rose 5.4 per cent to A$2.71b.
Super Cheap Autos — which delivers most of the group’s revenue — reported strong growth from its 45 New Zealand stores, where sales climbed 35 per cent to A$184.3m. That far outpaced the 3.5 per cent increase in revenue to A$2.53b from its 278 Australian stores.