Myer posts 38% hike in profit
Myer Holdings Limited (MYR) said its profit for the six months to 23 January 2010 jumped 38% to $115 million, not including the costs of its recent IPO. The result came on the back of a more modest 2% rise in sales to $1.797 billion.
Including the costs of last November's listing on the ASX, net profit fell to $21.3 million for the 26 weeks to January 23, from $83.2 million in the prior corresponding period.
Looking ahead, CEO Bernie Brookes offered a cautious outlook.
Mr Brookes said that despite sales in the first six weeks of the second half of the year being above the 2% growth in sales seen in the first half, he said he expected that total sales growth in the second half of the year would be in the range of 0% to 2% and the full year to be up 1% to 2%.
”Given the strength of our EBIT performance in the first half, and the ongoing benefits we are leveraging from investments made during the turnaround phase, we remain confident of delivering our prospectus forecast for EBIT of $261 million (up 10.7% on pcp),” Mr Brookes said.
Looking at the result for the last six months, Mr Brookes said it was the seventh straight profit growth for the company.
“These 44 months of profit growth have occurred at the same time as the business being re-engineered during the turnaround phase," Mr Brookes said.
Myer said EBIT was up 11.9% to $181 million.
The retailer also said its gearing was 24%, with net debt reduced to $274 million.
The company also reaffirmed that its expansion strategies remained on track with 15 new stores set to be opened by 2014.
The board declared a 10.5c per share dividend for the six months, saying it was on track to meet its prospectus target of between 20.5c and 21.2c per share.
At the close Wednesday, Myer shares were trading at $3.47.
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