Briscoe Group avoids Covid hit as profits dip slightly
AUCKLAND: Briscoe Group profits dipped marginally in the six months to July 26, dodging the Covid19 hit most corporates experienced in their earnings.
The homeware and sporting goods company posted an unaudited $27.9 million net profit after tax, down 1.3% in the firsthalf of the 2020 financial year, compared with $28.3 million in the previous period.
Its sales revenue dropped 3.5% to $292.4 million, compared with $302.9 million a year earlier.
The company, which operates Briscoes and Rebel Sports stores, will pay out an interim dividend for the period of 9 cents per share — up almost 6% on the 8.5 cents per share it paid in the same period last year.
The group did not receive a dividend in the period from its investment in Kathmandu.
Its firstquarter sales decreased by more than 35%, while its secondquarter sales, ‘‘assisted by the extraordinary increase in demand postlockdown’’, rebounded, up 28.2% on the same period last year.
Online sales grew 99.8% in the period, and now accounted for 22.1% of total group sales.
Briscoe Group managing director Rod Duke said the group was ‘‘delighted’’ with the strong halfyear result despite ‘‘the extraordinary upheavals experienced during this first six months’’.
‘‘To achieve a profit so close to last year, with stores unable to open for 50 days of that time, is a great result,’’ Mr Duke said in the company’s results presentation.
The dip in earnings in the period came from a 3.7% decrease in homeware sales, and a 3% decrease in sporting goods sales.
Despite this, its gross margin dollars closed the halfyear ahead of last year.
Briscoe Group received $11.5 million in wage subsidies and paid its staff regular remuneration during lockdown.
It was only eligible for the first round of financial aid.
The company closed the period with a cash balance of $98.5 million, compared with $67.42 million held at the beginning of the financial period.
‘‘The steps taken by the group to protect the company and preserve liquidity have ensured our balance sheet has remained strong, which is critically important in these uncertain and unpredictable times. The strong balance sheet gives us the flexibility to continue to protect the business as well as fund strategic initiatives to grow company profitability,’’ Mr Duke said.
August sales had kicked off strongly in the second half, he said. — The New Zealand Herald