Michael Hill’s annual profit soars over 1,300%
Michael Hill Managing Director Daniel Bracken. Photo / Supplied
Michael Hill International’s annual profit has climbed more than 1,300% despite significant disruption due to the global pandemic.
Jewelry company transtasman, which also has stores in Canada, reported net after-tax profit of A $ 45.33 million (A $ 47.35 million) in fiscal year 2021, up from $ 3. 1 million Australian dollars (3.5 million Australian dollars) in 2020.
Its earnings before interest and taxes (EBIT) were A $ 72.4 million, compared to A $ 14.1 million since fiscal 20.
The final dividend of A 3 cents per share was declared, bringing the total dividend for the year to 4.5 percent per share.
The group’s operating income rose 13.1 percent to A $ 556.5 million from A $ 492.1 million from 2020, even with 10,477 trading days lost, bringing them almost to pre-Covid levels in 2019, when sales were AU $ 569.5 million.
Group sales increased 8.6 percent.
Digital sales rose 53.4% to a record A $ 34.8 million in the year, accounting for 6.3% of total sales, up from 5% from 2020.
The company’s digital sales accounted for 6.3% or AU $ 34.8 million of total sales for fiscal 2021.
Michael Hill chief executive Daniel Bracken said the company is putting more emphasis on digital sales with the appointment of Keith Louie as senior digital director.
“His appointment, alongside the recent arrivals of Amy Sznicer, Chief Retail Officer, and Jo Feeney, Chief Marketing Officer, adds significant expertise to our already high caliber management team,” he said.
In New Zealand, all-store sales increased 19.1% to $ 127.1 million, from $ 106.7 million in fiscal 2020.
The gross margin for the year was 62.0 percent (EF20: 59.6 percent), which is the highest margin in the past five years.
At the end of the year, 49 stores were in operation (FY20: 49). Currently, all New Zealand stores are temporarily closed, due to government-imposed closures.
In Australia, all store sales increased 17.1% to A $ 312.3 million from $ 266.6 million in fiscal 2020.
At the end of the year, of the 150 Australian stores (FY20: 155), 30 NSW stores and 2 NT stores were temporarily closed. Currently 46 NSW stores, 34 VICs and 4 ACTs are temporarily closed, due to government imposed closures.
In Canada, all store sales increased 6.9% to C $ 118.4 million (C $ 135.1 million), from C $ 110.8 million during of the EX20.