Briscoe Group posts $ 73 million profit despite ‘retail roller coaster’ year

Homeware and sporting goods retailer Briscoe Group has posted a healthy profit of $ 73.2 million despite facing continued disruption from the coronavirus pandemic.

The group’s net profit after tax increased 17 percent in the 12 months through January, and its revenue increased 7.5 percent in the period to $ 701.8 million.

Its online sales in the period increased by almost 80 percent and now account for 18.9 percent of the group’s total sales.

The chairwoman of the board, Dame Rosanne Meo, announced that the directors have resolved to pay a final dividend of 13.5 cents per share.

The group’s managing director, Rod Duke, was particularly pleased with the result, given that it came amid outages caused by Covid-19.

“Navigating the twists and turns encountered this year has really been like riding a retail roller coaster,” he said.

“It is a business priority that the momentum established this year continues as the foundation for continued growth and success.”

Briscoe’s full-year result includes the value of an additional trading week this year due to the change in reporting dates.

“We are delighted to be in a position to increase interim and final dividend payments, in addition to the recent special dividend paid to shareholders in January,” Meo said in the NZX announcement.

The company said its gross margin in dollars increased 19.2 percent during the period and the percentage of gross margin increased from 39.4 percent to 43.7 percent.

During the year, the group made a capital investment of $ 27.4 million, of which $ 18 million represented property development in Auckland, Silverdale and Invercargill.

It also advanced its plans for new stores during the year, including relocating the Briscoes Homeware and Rebel Sport Nelson stores to larger sites. New Briscoes and Rebel stores will open in Silverdale in October.

“While the recovery in most of New Zealand’s retail trade since the end of the lockdown has been significant, the agility shown by the Briscoe Group team to adapt and take advantage of the new business conditions has also been incredible,” said Duke.

Meo said the outlook for the next 12 months of operations remains “uncertain” and “complex”, but the group was confident that the business was well positioned to generate better profits and future returns to shareholders.