Why Premier Investments’ (ASX:PMV) net profit rose nearly 89%

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Why Premier Investments’ (ASX:PMV) net profit rose nearly 89%

 Why Premier Investments’ (ASX:PMV) net profit rose nearly 89%

Source: ChutiponL, Shutterstock

Summary

  • Premier Investments Ltd (ASX:PMV) on Wednesday reported robust earnings in the first half of FY21 on account of robust sales.
  • While the 1HFY21 net profit increased by 88.9 per cent to A$188.2 million, the revenue surged 8.4 per cent to A$795.8 million.
  • The retailer also paid an interim dividend of 34 cents per share to the shareholders.

Premier Investments Ltd (ASX:PMV) on Wednesday reported robust earnings in the first half of FY21 on account of robust sales. The retailer also paid an interim dividend of 34 cents per share to the shareholders.

While the 1HFY21 net profit increased by 88.9 per cent to A$188.2 million, the revenue surged 8.4 per cent to A$795.8 million. Premier Investments also said that it would retain all coronavirus pandemic -related government support payments.

 

Source: © Cammerydarie | Megapixl.com

Record sales

While Premier Retail Global sales stood at A$784.6 million, up 7.2 per cent on 1H20, Global like for like sales were up 18.2 per cent on the prior corresponding period. The retailer reported record online sales of A$156.7 million, up A$59.5 million or 61.3 per cent on 1H20 and contributed 20 per cent of Global sales.

Strong sales outlook

Premier Investments said that the robust trading momentum has continued into the second half as well.  The Global like for like sales were expected to be up 32 per cent, while the gross margin percentage would be up 379 basis points for the first seven weeks of the second half.

Company commentary

Commenting on the development, Chairman, Solomon Lew, said that the company reported robust financial results despite challenging circumstances and a volatile environment. Lew said that the company is committed to the A$15.6 million net benefit of JobKeeper 1 recognised in the first half of 2021 being used to continue to pay its full time and part time workforce their contracted hours, should they potentially be stood down and unable to work due to any further state government mandated snap COVID-19 lockdowns.

Source: © Kustovelexy | Megapixl.com

Premier said that the “JobKeeper 1” benefit recognised in the first-half of 2021 will not be used in the calculation nor the funding, of dividends or management bonuses.

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Stock performance

The stock closed down 1.4 per cent at A$23.33 on Tuesday, 23 March 2021, as against the previous closing on Monday, 22 March 2021.

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