Super Retail Group (SUL) H2 2025 earnings summary

Executive summary

• Achieved record group sales of $4.07 billion, up 4.5% year-over-year, with like-for-like growth of 2.6% and accelerated second-half momentum across all brands, especially Supercheap Auto and Macpac.

• Online sales grew 8% to $524 million, now 13% of total sales, driven by omni-channel execution and loyalty program expansion.

• Continued investment in store network (31 new stores opened, 8 closed), omni-channel capabilities, and loyalty programs, with active club membership up by 1 million to 12.5 million.

• Challenging retail environment with cautious consumer spending, high promotional activity, and ongoing inflationary pressures.

• Significant improvement in team member safety, with TRIFR reduced from 14.5 to 12.1.

Financial highlights

• Gross margin declined 50 basis points to 45.6%, impacted by elevated stock loss and competitive intensity.

• Normalised PBT declined 3.9% to $329 million (PBT margin 8.1%, down 70 bps); statutory NPAT fell 8% to $222 million.

• Normalised NPAT was $232 million; normalised EPS of 102.9c, down 4% year-over-year.

• Fully franked total annual dividends of 96c per share (final 34c, special 30c, interim 32c).

• Operating cash flow of $577 million, with 95% cash conversion and $63 million cash balance at year-end; no drawn bank debt.

• Capital expenditure of $165 million, up $31 million year-over-year, focused on store network, distribution centre, and digital investments.

Outlook and guidance

• Entering FY26 in a strong financial position, with positive trading momentum: like-for-like sales up 3.1%, total sales up 5% in the first seven weeks.

• Capex for FY26 targeted at $155 million for store development, distribution centre completion, and digital investments.

• Plans to open 23 new stores and close 9 in FY26; store openings to moderate.

• Group and unallocated expenses in FY26 expected to total $60 million, including $29 million for payroll and distribution centre transition.

• No expectation of further special dividends unless liquidity position changes materially.