Super Retail Group reports 30 percent profit growth

Super Retail Group has revealed it delivered a record sales result with sales for its first half of FY23 of $1.96 billion, an increase of 14.8 percent on the year before, and like-for-like sales growth of 11 per cent. Gross margin remains above pre-COVID-19 levels at 46.2 percent. The reported NPAT for the period was $144.2 million, an increase of 30.1 percent.

According to the interim report, the growth in sales is attributed to strong Black Friday sales and peak Christmas trading performance as well as store network expansion with eight new store openings.

It also saw total online sales reach $236 million, representing 12 per cent of group sales. Click & Collect sales comprised 49 percent of all Super Retail Group online sales.

Supercheap Auto saw record sales growth this half with total divisional sales increased by 18.3 per cent to $728.6 million on the pcp. The company’s omnichannel offerings are highlighted with 8 percent of all Supercheap Auto sales taking place online, raking in $58m, with Click & Collect representing 73 percent of online sales.

Rebel similarly saw a record first half sales increase of 12.6 percent to $681.9m compared to the pcp. December also delivered the highest ever monthly sales for the brand. Online sales of $107m represented 16 percent of total rebel sales and Click & Collect represented 34 per cent of those online sales.

BCF total divisional sales increased by 7 percent to $447.6m on the pcp, a record first half for the brand. Online sales of $52m represented 12 percent of total BCF sales and Click & Collect represented 63 per cent of online sales.

The recently acquired brand Macpac also saw growth with another record half. Total divisional sales increase by 54.8 per cent to $101.4m. For Macpac, online sales of $19m represented 18 per cent of total brand sales and Click & Collect represented 17 per cent of online sales.

The half also saw active club membership grow by 1 million members (11 percent) in the past 12 months across all the brands to 9.7m.

Notably, Super Retail Group reported operating costs at $18.6 million were $8.9 million higher than the prior comparative period.

The report also brings up the FWO’s case against the company in the Federal Court over alleged contraventions of the Fair Work Act 2009, in which it was alleged the company underpaid many of its staff. According to the report, the proceedings are at an early stage and the outcome and total costs associated with the proceedings are uncertain, although Super Retail Group has recognised an additional potential $8.8 million payable as a consequence of proceedings.

Super Retail Group managing director and chief executive officer Anthony Heraghty said going forward, “core focus is on the core four brands, leveraging our ‘closeness to customer’, connecting our omni retail supply chain, simplifying business and excelling in retail.”

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