Nick Scali (NCK) H1 2025 earnings summary

Executive summary

• Group revenue for 1H FY25 was $251.1m, up 10.8% year-over-year, driven by the full-period inclusion of the UK business acquired in May 2024.

• Statutory profit after tax was $30.0m, down 30.2% year-over-year, impacted by UK losses and one-off costs in ANZ.

• Underlying profit after tax was $33.2m–$36.0m, exceeding prior guidance, with ANZ contributing $36.0m and UK reporting a $2.8m underlying loss after tax.

• Interim dividend of 30 cents per share, fully franked, was declared, payable 26 March 2025.

Financial highlights

• Group EBIT was $50.7m–$54.8m and EBITDA $77.6m–$81.8m for 1H FY25.

• Group gross margin declined to 62.2%–62.3% (from 65.6%) due to higher freight rates and UK mix.

• ANZ gross margin was 64.4%–64.5%, down 1.5–1.6% year-over-year; UK gross margin improved to 45.1% from 41.0–41.9% pre-acquisition.

• Group written sales orders rose 7.0% to $227.4m; ANZ online written sales orders grew 17.0% to $18.6m.

• Basic EPS dropped to 35.1 cents (from 53.1 cents) year-over-year.

Outlook and guidance

• ANZ trading remains volatile; written sales orders fell 8.5% in January 2025 but rebounded 5% in early February.

• Further Plush store openings in Victoria are planned, with some delays pushing openings to FY26.

• UK expects further disruption and increased short-term losses in 2H FY25 as eight more stores are refurbished and rebranded by June 2025.