Dick Smith Sales Up 7.5%
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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. 

Click to enlarge.Dick Smith now has 393 stores however this could be impacted by an exit from David Jones Stores.



More to follow.