Dick Smith Sales Up 7.5%
Days after announcing a move into appliances Dick Smith has announced that sales grew 7.5% in the last financial year,from $1,319.7m in 2015 vs 2014 $1,227.6m. Comp sales only grew 1% while EBITDA profits were up 7.4% to $79.8M.
Dick Smith CEO Nick Aboud said that sales had been impacted by an intentional reduction in unsupported promotions, patchy trading conditions and one less trading day in the important ‘tax-time’ June sales period.
The Company like JB Hi Fi is still struggling in New Zealand with Aboud claiming that Australia continues to stand out, achieving 21.9% EBITDA growth for the year and 30.1% EBITDA growth in the second half, resulting in an Australian EBIT margin of 5.5% for the year.”
New Zealand’s gross margin was 23.5% of sales, reflecting a more competitive market and increased promotional activity, particularly in 1H 2015.
Aboud said that the cost of doing business had decreasing 32bp to 18.7% of sales in 2015.
Abboud said “We are pleased to have delivered another solid underlying profit performance in this our second year as a listed company”.
The Directors have declared a fully franked 5.0 cents per share final dividend, to be paid on 30 September 2015. Total dividends declared in 2015 of 12 cents per share, represents approximately 65% of 2015 NPAT before restructuring costs, which is consistent with the Board’s guidance of a 60-70% payout range.
Dick Smith icreased stock levels of private label products which now represent 12.5% of sales, the Company said that they are looking to achieve 15% of all sales as house branded products.
The Company also said that they now have nearly 2,000,000 members of their Mates Rates Club.
More to follow.