NOEL LEEMING OPERATING PROFIT +87% IN LATEST TWG YEAR END RESULT

By Wares September 23, 2016 Industry news

Noel Leeming FY2016 sales +13%, same store sales +14% but lower margin CE products affect gross margin.

The latest result posted earlier today shows a better than expected overall TWG Net Profit After Tax of $78.3 million (+49.4% on last year) and an Adjusted Net Profit After Tax result of $64.1 million (+12.2% on last year).

In what TWG describes as a "very positive result", Noel Leeming's year end sales were $752 million, with Gross Profit of $154.6 million, a Gross Margin of 20.6% (pulled down by lower margin products) and an Operating Profit of $12 million (+87%).

Noe Leeming's Retail Operating Margin was still slim though at 1.6%, against just 1% last year. In comparison The Warehouse and Warehouse Stationery both reported a 5.1% figure and stablemate Torpedo 7 managed 2.3%.

The coming year will focus particularly on improving the Noel Leeming network's operating margin.

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