- Hallenstein Glasson group sales up 0.1%
- The results reflect the impact of store closures due to the Omicron surge
- Australian stores did better in sales as compared to New Zealand stores
Hallenstein Glasson Holdings Limited (NZX: HLG) announced its FY22 results on Friday (30 September 2022). According to the announcement, group sales for the full year were NZ$351.21 million, up marginally by 0.1% from the previous year.
The company said that the group’s net profit was NZ$25.61 million, a decrease of 23.2% over pcp. The sales were on par with that of previous year despite the challenges faced in the first half of the year due to the Omicron surge.
According to the company update, in the first half of the year, sales were impacted by numerous lockdowns in both New Zealand and Australia, with stores closed and many trading days lost. This decreased sales by 6.2% over the previous comparable period (pcp) in the first half. In the second half, the sales picked up by 6.6% over pcp, taking the total sales to NZ$351 in the full year, the company release said.
The gross margin was also steady at 57.6% as compared to 57.5% over pcp.
Sales across NZ and Australia
As per the company, in New Zealand, Glasson’s sales declined almost 13% to NZ$104.37 million and net profit after tax (NPAT) was down 64.7% to NZ$4.08 million. The company reported that it refurbished its North West store in Auckland during this period, and the Invercargill store was relocated to the new Invercargill Central mall in June.
According to the company, the sales were held up by Glasson’s sales in Australia, which were up 16.43% at AU$156.94 million, and net profit after tax was up 16.4% at AU$19.11 million. During this period, a new store opened in Marion, Adelaide. More stores have been opened in New South Wales and Canberra, Australian Capital Territories.
Hallenstein Brothers, the second part of the company, saw a decline in sales of 7.50% to NZ$89.91 million in both NZ and Australia. NPAT was down 56.6% over pcp to NZ$2.09 million.
HLG reported that online sales grew 16.1% during this period over pcp, representing 27.88% of total sales for the full financial year, up from the 24.04% recorded last year. The company continues to invest in digital platforms to keep Hallenstein and Glasson ahead of the market in functionality and technology.
The Board declared a final dividend of 24 cents per share (CPS) to be paid on 16 December 2022. This, together with an interim dividend of 18 cps that was paid on 14 April, makes the total dividend during FY22 to be 42 cps.
For FY23, the group said it looked forward to a year of minimal disruptions caused by the COVID-19 pandemic while inflationary pressures and freight costs remained a challenge. However, the company would refocus on its strategies of delivering quality, on-trend products, speed to market, and investment in digital platforms.
On Friday, 30 September 2022, the stock was trading up 0.80% at NZ$5.030 at the time of writing.