Premier Investments (ASX: PMV) reports 6.5% jump in HY23 profit, declares special dividend

Highlights:

• Premier Investments Limited (ASX: PMV) released its 1HFY23 results ended 28 January 2023 on Monday.
• In 1HFY23, PMV's revenue increased 18.92% to AU$916 million from AU$770 million in pcp.
• Its board declared an interim dividend of 54 cps and a special distribution of 16 cps (70 cps).

Premier Investments Limited (ASX: PMV) released its 1HFY23 results ended 28 January 2023 on Monday, 27 March this year. The stock reacted positively to the update and was trading up by 0.592% at AU25.480 in the morning hours. However, by 2:20 pm AEDT, PMV shares gave up early gains and were trading 1.46% lower at AU$24.960.

Let’s look at the key takeaways of PMV’s interim results.

In the reported period, revenues of the retail conglomerate increased 18.92% to AU$916 million from AU$770 million in pcp. NPAT rose 6.54% to AU$174 million from AU$163 million in pcp.

In 1HFY23, Premier Retail’s revenues surged by of 17.6% to AU$905.2 million over pcp. Online sales formed 18.9% of Premier Retail Sales, decreasing 12.5% to AU$170.9 million over pcp. Premier Retail EBIT (except significant items) in 1HFY23 was up 12.2% to AU$220.4 million.

Its designer brand Peter Alexander delivered record results, with its sales rising 15.1% in 1HFY23 to AU$261.7 million over pcp. Further, Smiggle revenue grew 30.3% to AU$190.7 million on pcp. Meanwhile, Apparel Brands generated sales of AU$452.8 million, which was 14.3% higher than pcp.  

On the operational front, Peter Alexander has recognised between 20 to 30 prospects for new and /or bigger format stores. It also intends to explore future offshore market prospects and is settling a partnership deal with an international cross-border e-Commerce platform provider to develop its brand globally throughout 35 nations. 

Smiggle is seeking prospects to advance the proprietary business throughout current regions by more than 30 stores.

Premier Investments 1HFY23 dividend

For the interim period,  Premier Investments’ board declared a 100% franked distribution of 54 cps and a special distribution of 16 cps, taking the total interim payout to 70 cps. This is 52.2% over pcp. It has an ex-distribution date of 20 June and a record date of 21 June 2023. The dividend amount is payable on 26 July this year.

On the outlook front, PMV’s Smiggle brand has begun 2HFY23 on a robust note, underpinning confidence in the outlook to increase its EBIT growth capacity by reaching additional consumers via an international expansion plan. It also aims to be a world leader in children’s stationery and lifestyle items.  

In Apparel Brands- all brands have begun 2HFY23 with a disciplined focus on inventory management which led to a clean inventory position for them.