Business News From Some Of The Big Players

A Billion dollar profit for Westpac NZ

Westpac New Zealand made a billion-dollar full year profit, boosted by strong revenue growth and the sale of Westpac Life.

• Net profit $1.05b vs $931m up 12%
• Revenue $2.71b vs $2.46b up 10%

Chief executive Catherine McGrath said the result put the bank in a strong position to support customers, amid an uncertain economic environment.

“After a year of market volatility and rising living costs, many New Zealanders will be feeling uncertain about the future. We want our customers to know our bankers are here to offer help and solutions.”

Looks like folks have been out shopping over the last couple of months.

The Warehouse Group (TWG) released its first quarter sales results on Friday It shows their cash registers are ringing a happy tune and customers are coming back through the doors.

By the numbers –

Group sales for the 13 weeks to 30 October 2022 (“FY23 Q1”) were $764.7 million, up 21.2% compared to FY22 Q1 and up 12.3% compared to FY20 Q1 (being the last pre-COVID comparative period).
Record first quarter sales at The Warehouse of $414.6 million, up 39.0% on FY22 Q1, as customers shopped for value with grocery sales up 76.2% and homeware sales up 32.2%.
Foot traffic increased 61.4% across all brands in FY23 Q1 compared to FY22 Q1 as customers returned to store.
Group gross profit margin was 32.3% in FY23 Q1, reduced from 32.9% gross profit margin in FY22 Q1.
MarketClub membership reaches 800,000 members, delivering value to New Zealanders every day.

Note the increase in foot traffic. Shoppers are going back to the Red Sheds.

Group CEO Nick Grayston said  “In the current environment with increased cost of living pressures, New Zealanders are continuing to seek great value across our brands with FY23 Q1 sales at The Warehouse at the highest level in our history.

“Every dollar counts for our customers, and we remain committed to keeping the price on key essentials as low as possible. We’re seeing a shift in demand from premium categories, such as technology and home office equipment that experienced a lift in recent years, to growth in our great value essentials like grocery and homeware.

Continuing with the trend with The Warehouse, Briscoe Group (Briscoes, Rebel Sport) says third quarter sales are up more than a quarter on the year earlier, with the full year net profit expected to beat last year’s result.

The company was “extremely pleased” with a significant 27 percent increase in group sales to $175.5 million in the 13 weeks ended October, compared with the year earlier period, when Auckland was still in lockdown, chief executive Rod Duke said.

Homeware sales rose 23 percent, sporting goods rose 33 percent and online sales rose 18 percent.

Getting stuff from A to B

Global logistics business Mainfreight’s first half profit is up two-thirds on the year earlier, with all three division and five regions contributing significantly.

Net profit $217.0m vs $130.8m

Revenue $3.00b vs $2.27b

Net profit before tax $301.7m vs $182.00m

The company said the result was in line with expectations, with revenue levels up 2 percent and profit before tax up 11 percent in the first five weeks of October and into November.

Mainfreight’s market update states “Investment in our network expansion and intensification continues which will see a further increase in capital expenditure and lease commitments over the next 18 months – such is our confidence in the potential growth opportunities available.”

Declaration – Mal Gayfer is also an employee of TWG