Nick Scali (NCK) H2 2025 earnings summary

Executive summary

• Group revenue increased 5.8% year-over-year to $495.3m, with written sales orders up 8.4% to $493.8m.

• Underlying profit after tax was $73.2m excluding one-off costs, but reported at $62.0m due to UK losses and freight forwarding costs.

• ANZ operations remained profitable, while UK operations posted an underlying loss after tax of $11.2m.

• Online written sales orders in ANZ grew 21.8% to $42.4m, driven by eCommerce enhancements.

• Final dividend of 33 cents per share, bringing full year dividends to 63 cents per share (40% or fully franked).

Financial highlights

• Group gross margin was 63.5%, with ANZ at 65.0% and UK at 47.1%; UK second half margin improved to 51.8%.

• EBITDA was $159.1m, down from $175.0m in FY24; EBIT was $105.7m, down from $129.5m.

• Operating cash flows (net of lease liabilities) were $93.1m, compared to $126.1m in FY24.

• Cash and bank deposits at year-end were $101m; net cash position was $29.3m.

• Inventory on hand at year-end was $44.6m, with property at net book value of $120.1m.

Outlook and guidance

• Written sales for July increased 7.7% year-over-year; Q1 sales revenue expected to be higher than prior year.

• Five new stores confirmed for opening in the year, with more opportunities under review.

• UK losses expected to continue until all store refurbishments are completed and sales per store improve.