24 Feb REPORTING SEASON – A ROUNDUP OF THE PERIOD’S QUIRKIER RESULTS
Welcome to this week’s business and media intelligence update.
We are finally on the home stretch of the first reporting season of the year, so here is a roundup of the period’s quirkier results — from pizza to wine, diamonds and hair clippers…
PANDEMIC SLICES PIZZA PROFITS
Dominos Pizza failed to meet market expectations when it released its half-year results on Wednesday, with chief executive Don Meij warning that sales growth will continue to lag for the rest of the year. That sent shares in the pizza chain down 17 per cent.
The company reported a 6.9 per cent decrease in net profit after tax to $89.1 million, while earnings before interest and tax (EBIT) was 5.7 per cent lower at $144.7 million.
Mr. Meij blamed the company’s poor performance on pandemic-induced staff shortages, an increase in dining out as COVID-19 restrictions relaxed, and rising inflation.
To offset some of the growing costs for cheese, meat and energy, Dominos announced the launch of a new range of higher-priced pizzas.
You had us at pizza.
GIN’S UP
While many of us are swapping pizza delivery for dining in restaurants, the majority of Australians still prefer to visit liquor retailers than go to their local pub, according to Endeavour Group chief executive Steve Donohue.
Endeavour Group, the owner of Dan Murphy’s and BWS chains, on Thursday, reported a 15.6 per cent rise in interim net profit to $311 million.
Mr. Donohue said that while the first half of the financial year was dominated by government-mandated closures and density limits, the group’s retail liquor arm achieved strong profit margins as consumers drank and entertained from the comfort of their own home.
Shoppers were also increasingly buying higher-priced and craft options, with gin and seltzer particularly popular.
Cheers to that.
RINGING IN SOARING PROFITS
The pandemic failed to dent profits for Michael Hill, despite the jeweller chain losing almost 20 per cent of trading days to the pandemic in the first half of the financial year.
Michael Hill reported a $12.4 million or 6.2 per cent increase in gross profit and delivered a 2.3 per cent rise in revenue to $327.1 million.
Chief Executive Daniel Bracken said the company was reaping the benefits of booming bank balances that grew over lockdowns.
Talk about going for gold…
SHAVER SHOP GETS A SNIP
The pandemic has not only increased the amount of bling Australians are purchasing, but also hair care products.
The Shaver Shop’s interim net profit fell 8.6 per cent to $14.3 million, on the back of COVID-mandated store closures and weaker margins due to the rise in sales of cheaper products.
Despite a boom in the sale of hair clippers in the first year of the pandemic, with hair salons closed, The Shaver Shop experienced a shift to massage, powered toothbrushes and long-term hair removal products in the last half of 2021.
First-half sales were up 2.8 per cent at $123.6 million, with online sales rising 37 per cent to $51.6 million, representing 41 per cent of total sales.
The retailer expects the demand for shaving products to rebound in the second half of the financial year with Australians tidying up their appearances as they head back to the office.
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