Super Retail Group's proactive approach pays off
Written on the 15 August 2019 by Paris Faint
A tough retail industry has claimed its fair share of victims over the past few years, but Super Retail Group (ASX: SUL) appears to be standing head and shoulders above the mire.
The company behind popular brands Supercheap Auto, Rebel, BCF and Macpac experienced steady and consistent growth throughout FY19.
Group sales rose 5.4 per cent to $2.71 billion while profit increased 5 per cent to $152.5 million.
There were no dead weights as each brand under SRG's umbrella experienced positive like for like sales growth.
Managing director and CEO Anthony Heraghty says the company took a proactive approach in ramping up its loyalty programs, digital retail capabilities and general systems.
"We have grown our active loyalty club membership to over six million members," says Heraghty.
"Our club members now represent over 56 per cent of sales across the group. Our investment in building our digital and omni-retail capabilities has underpinned 2 per cent annual growth in group online sales.
"We have strengthened our portfolio of powerful brands All of our brands have leading market positions in growing lifestyle categories and have consistently demonstrated the ability to deliver top line growth."
Supercheap Auto and Rebel remained group cash cows delivering $1.04 billion and $1.01 billion in sales respectively.
Sales increased 3.3 per cent at BCF to $514.6 million while Macpac experienced the biggest relative growth of 7.3 per cent to $119.3 million.
SRG paid down $36.2 million in debt and completed a comprehensive review of its employment arrangements following the identification of underpayments to team members which the group announced to the market earlier this year.
The group is in the process of rolling out backpay to all impacted team members. A total of $24 million is slated as retained earnings and a further net $8.9 million before tax is the further expense relating to revision of wages underpayment estimates and remediation costs.
These financial results mark the first full year report since the departure of legacy CEO Peter Birtles in October 2018.Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Author: Paris Faint