Super Retail posts 19.8% drop in interim profit amid higher operational costs
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The news: Super Retail Group reported a 19.8% drop in half-year statutory net profit to $104 million, down from $130 million a year ago, citing higher costs of business and additional costs related to the new Victorian distribution centre and payroll systems.
The numbers: Analysts had forecast $117.8 million, according to Visible Alpha data.
Group revenue saw a 4.2% increase year-on-year to $2.19 billion, while segment earnings before interest and tax was 2.8% lower to $212 million.
The group declared a fully franked interim dividend of 32 cents per share, higher than consensus estimates of 30 cents.
The context: CEO Paul Bradshaw said the interim profit decline was due to higher costs of doing business and additional project expenses linked with the transition to the new Victorian distribution centre.
Earnings were also weighed down by the implementation of a new payroll system during the period.
The group said it is targeting capital expenditure of $155 million in FY26 to support its store development program, complete the new distribution centre and ongoing investments in cyber and digital capabilities. It also plans to open 12 new stores in the second-half.
The source: ASX
