Thursday morning saw Premier Investments [ASX:PMV], a subsidiary-driven retailer, provide its FY22 preliminary final results.
The consumer cyclical stock reported an FY22 NPAT of $285.2 million, with ‘record’ sales reaching $1.5 billion for the year.
These results drove further record numbers for the company, boosting EBIT to $352.5 million.
Off the back of these results, the company also announced an on-market share buyback of up to $50 million with a 25-cent boost per share.
Shares resultantly soared 13% by the early afternoon, however, the retail stock remains down by more than 23% year-to-date.
Source: Trading View
Premier’s full-year results unveiled
Today, the retail assets holder presented its FY22 financial results, along with the intention to execute a $50 million on-market share buyback.
These were the highlights:
- FY22 NPAT totalled $285.2 million, a 4.9% increase on FY21 totals, up 167% on ‘pre-COVID’ (FY19)
- Premier Retail global sales were $1,497.5 million, up 5.2% on FY21 despite store closures
- Global like-for-like sales were up 5.4% on FY21
- Premier Retail gross margin was at 64.8% — an increase of 52 bps on FY21
- The Premier Retail EBIT margin was counted at 22.4% — increasing 100 bps on FY21
- Premier’s operating debt was repaid during the year, and the FY22 closing balance was $471.3 million
- FY23 started strong, with global sales up 46.7% on the same period last year
- Total fully franked dividends for the full year were 125 cps, up 56.3% on FY21
By segment, Premier reported:
- Record Peter Alexander sales of $428.5 million over the year, an increase of 11.4% on FY21
- Smiggle totalled $261.2 million, an increase of 24.6% on FY21 (2H22 up 61.7%)
- Premier’s new investment in Breville was made at a market value of $760.3 million for 30 July 2022
Premier said its strong results were driven by an increase in sales and gross margin, despite 42,675 trading days lost to pandemic-induced store closures.
The group’s gross profit for the year came to $969.8 million, a 6.0% increase on FY21 and 23.3% on FY19 with business expenses decreasing 51 bps on FY21 and 637 bps on FY19.
Premier’s Chairman, Solomon Lew, commented:
‘Our team has delivered an impressive full year result for our shareholders, especially in the context of significant operational challenges that included Government mandated lockdowns, global supply chain complexities and omicron disruption. Premier Retail EBIT is up 10.1% on the prior year and is more than double pre-pandemic levels. This is testament to the seamless leadership transition to Richard Murray, the unrelenting focus on execution by our management team, and the commitment of our people.’
Source: PMV
Premier gains post-pandemic momentum
Premier’s start to FY23 appears strong, representing a new era free from COVID-19 obstacles and with sales expected to soar for upcoming calendar events such as Black Friday, Cyber Monday, and Christmas.
Premier CEO Richard Murray said:
‘The continuing challenges of the pandemic have been a focus in my first year with Premier, so it is deeply rewarding to announce a successful result to our stakeholders against the background of such a difficult environment.
‘Our portfolio of seven iconic brands has continued to perform, building on their distinctive market positions during the year. We continue to invest in our omni-channel offering, delighting our customers however they choose to engage with us.
‘FY23 has started strongly, and we remain well-positioned to drive growth from our unique retail model.’
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