Super Retail Group (SUL) H1 2025 earnings summary

Executive summary

• Revenue grew 4% year-over-year to $2.1 billion, with like-for-like sales up 1.8% amid a challenging retail and consumer environment, especially in New Zealand.

• Online sales rose 10% to $286 million, now 14% of total sales; active club membership increased 8% to 12 million, with loyalty programs meeting or exceeding KPIs.

• Statutory NPAT was $129.8 million, down 9.5%–9.9% year-over-year; normalized NPAT was $130.8–$131 million.

• No drawn bank debt and cash position at period end was $168 million.

• 19 new stores opened and 14 refurbished in the half, with a target of 28 new stores for FY25.

Financial highlights

• Gross margin declined 70 basis points to 45.6%, mainly due to loyalty investment, stock loss, and inflationary pressures.

• Operating cash flow was $389 million, down 18–19% due to payment cycle timing; EBITDA cash conversion at 93.5–94%.

• Fully franked interim dividend of 32 cents per share declared.

• Cost of doing business as a percentage of sales increased by 30 bps to 35.5%.

• Statutory EPS was 57.5 cents, normalised EPS 57.9 cents, both down ~10% year-over-year.

Outlook and guidance

• Positive trading start to 2H FY25, with group gross margins and like-for-like sales tracking ahead of prior year.

• CapEx for FY25 targeted at $165 million, focused on store development, new distribution centre, and digital enhancements.

• 28 new store openings planned in FY25; duplicated DC transition costs of $10 million expected.

• Ongoing cost pressures and FX volatility may impact short-term margins, but price increases are expected to offset over time.