SUL Results: Record Sales Despite rebel Slump

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By Published On: February 23, 20240 Comments

As predicted in January’s preliminary results release, Super Retail Group has reported a record first half.

Last year, Super Retail Group (ASX:SUL) recorded its biggest sales growth ever with a revenue increase to $3.8 billion in FY23 across its brands Supercheap Auto, BCF, rebel, and macpac.

In 1H FY24, Group sales are up 3 percent to $2 billion. Online sales have experienced a “strong rebound”, up 10 percent to $260 million, representing 13 percent of sales. Click & Collect remains a strong sales driver, representing 47 percent of Group online sales. 

Transactions have grown across all four core brands, and active club members are up by over a million, growing 15 percent to over 11 million. During this period, SUL successfully relaunched rebel active loyalty program, with more than two million club members already. 

Supercheap Auto sales increased by 4 percent to $760 million with low ticket price consumables (including parts, wipers, electrical and car comfort products) a key driver of revenue growth.

BCF was the standout performer as warm and dry conditions drove consumers to the outdoors. Total sales increased by 8 percent to $484 million.

These warm and dry conditions had a negative impact on macpac, SUL reports with like-for-like sales declining by 5 percent in Australia, however overall total sales increased by 4 percent to $105 million driven by new store openings.

rebel is living up to its name with the sporting goods retailer slipping behind its fellow brands in sales. Total sales declined by 1 percent to $673 million and like-for-like sales declined by 3 percent, reflecting a decrease in units per transaction. According to SUL, “rebel’s first half result includes the impact of a $5 million provision for deferred revenue as a result of loyalty credits issued to customers. The provision is expected to be approximately $8 million in total for the full year FY24, in line with previous disclosure. The introduction of the loyalty program had a 70 bps adverse impact on rebel’s first half PBT margin.”

Group Managing Director and Chief Executive Officer Anthony Heraghty is happy with SUL’s achievements this half.

“Super Retail Group is pleased to report first half profit before tax of $204 million, above the previously announced guidance range,” said Heraghty. “I would like to recognise the hard work of our 15,000 team members who have been instrumental in achieving this positive outcome. To have delivered record first half sales of more than $2 billion and net profit after tax of $143 million is a very good result in the context of an increasingly challenging consumer environment. During the first half we reached a number of milestones in the execution of our corporate strategy including the successful relaunch of our rebel active loyalty program, the commencement of construction of our new automated distribution centre and the opening of our 750th retail store.”

During the half, the Group opened seventeen new stores, and upgraded and five rebel stores. According to the Group, it expects to invest $140 million of capital expenditure in FY24 to fund its store development program and construction of a new distribution centre, and enhance its omni, loyalty and digital capability.

Looking ahead, Anthony Heraghty said “The Group continues to focus on optimising margin and driving cost efficiencies in the business. Inflationary pressure on cost of doing business is expected to moderate but will continue to impact wages and rent in the second half.”

“While there are signs of a more subdued consumer environment, we remain relatively well positioned given our customer value proposition, the strength of our brands and our loyalty programs and the resilience of the lifestyle and leisure categories in which we operate.”

About the Author: Rosalea Catterson

Rosalea is the Editor of Power Retail. With a keen interest in consumer behaviour and tech, she covers everything ecommerce and hosts the Power Retail Power Talks Podcast.

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