Briscoe's first-half profit rises
The company expects to report net profit of at least $20 million in the six months ending July 26.
Briscoe Group [NZX: BGR], the retail chain mounting a hostile takeover of Kathmandu Holdings [NZX: KMD], says first-half profit rose at least 8.1%, outpacing sales growth in the period, as the company continues to fatten its margins.
The company expects to report net profit of at least $20 million in the six months ending July 26, up from $18.5 million a year earlier. That outpaced the 5.4% gain in first-half sales to $244 million, driven by a 10% gain in sporting goods sales and a revenue gain of 3% from its homeware stores.
Briscoe's second-quarter sales rose 6.5% to $116.7 million, and were up 5.4% on a same-store basis. Of that, the homeware segment lifted sales 5.3% and the sporting goods chain gained 5.9%.
"Our bottom line is tracking well ahead of last year despite the late start to winter and the high levels of competitiveness across the retailing sectors in which we operate," managing director Rod Duke says.
"The continued profit improvements flow from the increased levels of sales we are generating at significantly improved margins, as well as the ongoing improvements we are making in efficiency throughout the group."
Briscoe is in the middle of a takeover bid for outdoor equipment chain Kathmandu. The company is offering Kathmandu shareholders five Briscoe shares for every nine Kathmandu shares as well as 20 cents, in a bid to buy the remaining 80.1% of the stock it doesn't already own.
Briscoe shares, which are largely owned by Duke, last traded at $2.82, and have declined 5.1% this year.
(BusinessDesk)
Paul McBeth
Thu, 30 Jul 2015
Thu, 30 Jul 2015
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Briscoe's first-half profit rises
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