Super Retail Group (SUL) H2 2024 earnings summary

Executive summary

• Record sales of AUD 3.9 billion, up 2% year-over-year, with gross margin rising 10 bps to 46.3% despite cost inflation pressures.

• Statutory NPAT declined 9% to AUD 240 million; normalized NPAT down 11% to AUD 242 million; statutory EPS was 106 cents.

• Fully franked final dividend of AUD 0.37 and special dividend of AUD 0.50 per share, totaling AUD 1.19 annual dividend.

• 28 new stores opened, online sales up 9% to AUD 485 million, and active club members increased 12% to 11.5 million.

• Strong cash position with AUD 218 million and no drawn bank debt at year-end.

Financial highlights

• Total sales rose 2.1% to AUD 3,882.6 million; segment EBIT down 8.6% to AUD 400.4 million; normalised NPAT down 11.5% to AUD 242.1 million.

• Segment PBT down 12% to AUD 343 million, with PBT margin at 8.8%.

• Operating cash flow of AUD 635 million; capital expenditure at AUD 135 million.

• Cost of doing business as a percentage of sales increased by 120 bps due to inflation in wages and rent.

• Inventory rose by AUD 58 million, reflecting higher sales and new store openings.

Outlook and guidance

• FY2025 has started strongly with 3% like-for-like and 5% total sales growth in the first seven weeks.

• CapEx for FY2025 targeted at AUD 165 million for store development, new distribution centre, and digital enhancements.

• 25 new store openings planned in FY2025; continued upward cost pressure expected, especially from wage increases.

• One-off AUD 8 million increase in costs expected in FY2025 due to distribution centre transition.

• Consumer outlook remains uncertain due to cost of living pressures.