Shaver Shop Group (SSG) H1 2025 earnings summary

Executive summary

• Sales for H1 FY25 were AUD 125.8 million, down 1.0% year-over-year, mainly due to a 5.1% drop in online sales, while in-store sales rose 0.3% despite lower foot traffic.

• Net profit after tax was AUD 12 million, down 3.5% year-over-year; basic EPS 9.3 cents.

• Gross profit margin reached a record 45.5%, up 110 basis points, driven by exclusive and private brands, reduced discounting, and category management.

• Transform-U/Transform-UTM private brand launch exceeded expectations, contributing significantly to gross margin and category share.

• Balance sheet remains robust with AUD 24.5 million net cash and no debt.

Financial highlights

• Total sales for H1 FY25 were AUD 125.8 million, down 1.0% year-over-year; in-store sales flat or up 0.3%, online sales down 5.1%.

• Gross profit margin rose 110 basis points to 45.5%, with gross profit dollars up 1.4% year-over-year.

• Net profit after tax was AUD 12 million, down 3.5% year-over-year; basic EPS 9.3 cents.

• Operating cash flow was AUD 28.1 million, down from AUD 34.9 million in H1 FY24, mainly due to higher inventory.

• Interim dividend increased to 4.8 cents per share, fully franked.

Outlook and guidance

• Trading update for Jan–Feb 2025 shows total sales up 0.3% year-over-year, with like-for-like sales up 0.7%.

• Focus remains on expanding private brands, securing new exclusive agreements, and optimizing the store network.

• Inventory levels expected to end FY25 AUD 2–5 million higher than prior year, mainly due to private brand and distributor inventory.

• Gross profit margin remains significantly above the prior corresponding period.

• Management remains optimistic about medium- to long-term growth drivers and ongoing initiatives to return to top-line growth.