Michael Hill's full-year profit skyrockets more than 1300 per cent

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Business

22 Aug, 2021 10:17 PM

Michael Hill chief executive Daniel Bracken. Photo / Supplied

Michael Hill International’s full-year profit has soared by more than 1300 per cent despite signifincant disruption from the global pandemic.

The transtasman jewellery business, which also has stores in Canada, posted A$45.33 million ($47.35m) net profit after tax in the 2021 financial year compared to A$3.1m ($3.5m) in 2020.

Its earnings before interest and tax (EBIT) was A$72.4m, soaring from A$14.1m from FY20.

The final dividend of A3 cents per share was declared taking the total dividend for the year to 4.5 per cent per share.

Group operating revenues increased 13.1 per cent to A$556.5m from A$492.1m from 2020 even with 10,477 lost trading days, taking it to almost pre-Covid level in 2019, when the sales was at A$569.5m.

The groups’ sales were up by 8.6 per cent.

Digital sales increased 53.4 per cent to a record A$34.8m in the year, making 6.3 per cent of total sales, which was up from 5 per cent compared to 2020.

The company’s digital sales accounted for 6.3 per cent or A$34.8m of the total sales for FY2021.

Michael Hill chief executive Daniel Bracken said the company was placing a greater emphasis on digital sales with appointment of Keith Louie as its first chief digital officer.

“His appointment, alongside the recent arrivals of Amy Sznicer, Chief Retail Officer, and Jo Feeney, chief marketing officer, adds significant expertise to our already high calibre leadership team,” he said.

In New Zealand all store revenue increased by 19.1 per cent to $127.1m from $106.7m in FY2020.

Gross margin for the year was 62.0 per cent (FY20: 59.6 per cent), resulting in the strongest margin in the last five years.

At year end, there were 49 stores trading (FY20:49). Currently, all New Zealand stores are temporarily closed, due to government mandated lockdowns.

In Australia all store revenue increased by 17.1 per cent to A$312.3m up from $266.6m in FY2020.

At year end, of the 150 Australian stores (FY20: 155), 30 NSW and 2 NT stores were temporarily closed. Currently, 46 NSW, 34 VIC and 4 ACT stores are temporarily closed, due to government mandated lockdowns.

In Canada all store revenue increased by 6.9 per cent to CA$118.4m ($135.1m) from CA$110.8m in FY20.