Super Retail Group (SUL) H1 2025 earnings summary

Executive summary

• Revenue/sales 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 (14% of total sales), and active club membership increased 8% to 12 million, with loyalty programs meeting or exceeding KPIs.

• Statutory NPAT was $129.8 million, down 9.5%–10% year-over-year; normalized NPAT was $130.8–$131 million.

• 19 new stores opened in H1, with a target of 28 for FY25, and ongoing investment in digital, loyalty, and supply chain capabilities.

• No drawn bank debt and a net cash position of $168 million at period end.

Financial highlights

• Gross margin declined 70 bps to 45.6%, mainly due to loyalty investment and elevated stock loss.

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

• Operating cash flow was $389 million, down 18–19% due to payment cycle timing.

• EBITDA cash conversion at 94%, consistent with prior period after adjusting for payables timing.

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

Outlook and guidance

• Positive trading start in H2, with group gross margins tracking ahead of prior year for the first seven weeks.

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

• 28 new store openings planned in FY25; duplicated DC transition costs to add $10 million to unallocated costs.

• Ongoing inflationary pressures and FX volatility expected to impact margins and cost base.