3 Feb 2023

Briscoe Group announces record profits for year

2:15 pm on 3 February 2023
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Briscoes announced a 5.5 rise in group sales for last year. Photo: RNZ

Retailer Briscoe Group is expecting a record full year profit on the back of higher sales, but is preparing for tougher times.

The company has reported a 5.5 percent rise in group sales to $786 million for the year ended January, as it sustained growth in the second half of the year, and said it expected a net profit for the year of no less than $88m, just above last year's record.

Group Managing Director Rod Duke said making record sales and profit amid a deteriorating economic outlook, falling consumer confidence and the various disruptions caused by the pandemic was an outstanding achievement.

"Part of this year's success has been our ability to navigate the myriad of negative conditions which destabilised and disrupted retail trade.

"The model we operate continues to be extremely adaptable through these turbulent and trying economic times, providing the capability for the business to be flexible but focused on key deliverables to provide the best possible customer experience."

Duke said it had improved its technology and was focused on balancing sales, gross profit and inventories.

"We are seeing increasing pressure as the impacts of the economic downturn are felt ... We expect Group gross margin percentage for the full year to close around 175 basis points below the gross margin percentage of 45.76 percent achieved for last year.

"We expect the deteriorating economic conditions and subsequent negative impact on customer sentiment to continue into the 2023 calendar year and do not underestimate how difficult trading will be."

The company received $2.1m in dividends from its stake in outdoor goods company KMD Brands compared with the previous year's $1.7m.

Last month The Warehouse Group announced it was restructuring and planning to shed up to 190 jobs because of a fall in sales and weaker outlook.

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