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 and challenging macroeconomic conditions.

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

• Online sales grew 9% to AUD 485 million, now 13% of total sales.

• 28 new stores opened, active club members increased 12% to 11.5 million, representing 77% of sales.

• Fully franked final dividend of AUD 0.37/share and special dividend of AUD 0.50/share declared.

Financial highlights

• Total sales rose 2.1% to AUD 3,882.6 million; segment EBIT down 8.6% to AUD 400.4 million; segment PBT down 12% to AUD 343 million.

• Gross margin improved to 46.3%; PBT margin at 7.4%, above pre-COVID levels.

• Operating cash flow AUD 635 million; CapEx AUD 135 million, with FY25 CapEx expected at AUD 165 million.

• Inventory increased by AUD 58 million due to new stores and inflation, but stock health remains robust.

• Cash balance of AUD 218 million at year-end, no drawn bank debt.

Outlook and guidance

• FY25 off to a strong start: 3% like-for-like and 5% total sales growth in first seven weeks.

• CapEx of AUD 165 million planned for FY25, including store development, new distribution center, and digital enhancements.

• 25 new store openings planned for FY25; continued upward cost pressure expected, especially from wages and rents.

• One-off AUD 8 million increase in costs expected in FY25 due to distribution center transition.

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