Supercheap Auto races on
Written on the 10 March 2009
Supercheap Auto Group has reported nine per cent half yearly net profit increase after tax to $13.6 million.
The directors have declared a fully franked interim dividend of 6.5 cents per share, an increase of 18 per cent over the prior year. The dividend will be paid on March 31 with a record date of March 9.
Supercheap Auto Group managing director Peter Birtles, says the results demonstrated the continued strong performance of both Supercheap Auto and its Boating Camping Fishing (BCF) franchise.
“Despite the widely reported downturn in retail conditions, both businesses have maintained their level of like for like sales growth without any changes to planned marketing and promotion programs,” says Birtles.
“The performance has been driven by a continued commitment to product range and inventory management, product development, store operational standards and supply chain efficiency.”
The company reduced net debt by $12 million during the first half, despite $30 million being invested in new and refurbished stores.
BCF sales increased by 30 per cent to $101.6 million, reflecting the opening of six new stores and 6.8 per cent like for like sales growth. EBIT increased by $3.1m (64.6 per cent) to $7.9m. Birtles says the second half of 2009 had started well.
“Like for like sales growth in Supercheap Auto has been more than five per cent, while BCF has delivered like for like sales growth in excess of 10 per cent, for the first seven weeks of the second half,” says Birtles.
“We continue to expect our businesses to grow their sales at a faster rate than the markets in which they operate. The Group plans to open one to two new Supercheap Auto stores, three to five BCF stores and one Goldcross store during the second half.
“Both Supercheap Auto and BCF are on track to slightly improve EBIT margins over the full year, while Goldcross is expected to report a negative EBIT contribution of around $2 million, reflecting the investment in business development and store set up costs.”