The Warehouse Group Limited FY22 Interim Results
22 March 2022
NZX Limited
The Warehouse Group Limited
Unaudited results for the 26 weeks ended 30 January 2022
The Warehouse Group Limited today announced its half-year results for the six months ending 30
January 2022. Attached are the following documents:
1. Results Announcement
2. Media Release
3. Investor Presentation
4. Interim Financial Statements for the 26 weeks ended 30 January 2022
5. Auditor’s Independent Review Report
6. Distribution Notice
7. Quarterly Sales Report
Jonathan Oram
Chief Financial Officer
ENDS
Contact details regarding this announcement:
Investors and Analysts: Jonathan Oram, Chief Financial Officer
To be contacted via Kim Russell
+64 9 488 3285 or +64 21 452 860, kim.russell@thewarehouse.co.nz
Media: Nick Grayston, Group Chief Executive Officer
To be contacted via Jordan Schuler
+64 21 143 6930, media.enquiries@thewarehouse.co.nz
The Warehouse Group Limited
26 The Warehouse Way
Northcote, Auckland 0627
PO Box 33470 Takapuna
Auckland, New Zealand 0740
phone +64 9 489 7000
fax +64 9 489 7444
web www.thewarehousegroup.co.nz
---
Results for announcement to the market
Name of issuer The Warehouse Group Limited
Reporting Period 26 weeks to 30 January 2022
Previous Reporting Period 26 weeks to 31 January 2021
Currency New Zealand dollars
$1,729,984
$1,729,984
$50,442
$50,442
Interim Dividend
Record Date 06 April 2022
Dividend Payment Date 26 April 2022
Contact phone number
Contact email address
Date of release through MAP
Unaudited financial statements accompany this announcement.
22 March 2022
$0.10000000
$0.03888889
Authority for this announcement
Name of person authorised to
make this announcement
Contact person for this
announcement
Jonathan Oram (Group Chief Financial Officer)
Jonathan Oram (Group Chief Financial Officer)
09 217 7651
Prior comparable period
Imputed amount per
Quoted Equity Security
Net tangible assets per
Quoted Equity Security
down (8.2)%
Total Revenue
Total net profit/(loss)
Amount per Quoted Equity
Security
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Jonathan.Oram@thewarehouse.co.nz
74.7 cents (30 January 2022) 81.1 cents (31 January 2021)
The investor presentation and media release which accompany this
announcement, provide information and commentary to explain the financial
performance of the Group for the 26 week period ended 30 January 2022.
down (4.3)%
down (4.3)%
Current period
down (8.2)%
The Warehouse Group Limited
Results for announcement (for Equity and Debt Security issuer)
Amount (000s)Percentage change
Revenue from continuing
operations
Net profit/(loss) from
continuing operations
---
To: NZX Limited
Auckland, Tuesday 22 March 2022
The Warehouse Group FY22 Interim Results announcement
Record Christmas and summer sales despite COVID-19 impacts
Highlights
• Record sales in the second quarter, up 2.8% compared to FY21 Q2 and up 11.2%
compared to pre-COVID-19 FY20 Q2. Group sales of $1,730.0 million for the half, down
4.3% compared to last year.
1
• Despite the disruptions of COVID-19, transformation remains on track with key
programmes beginning to deliver.
• Challenging first half in total as Auckland stores were closed for 46% of total trading days,
and across New Zealand stores were closed for 23% of total trading days.
• Gross Profit of $599.6 million for the half, down 8.5% and Gross Profit Margin down 150
basis points to 34.7% compared to last year, primarily due to disruptions in our supply
chain and increased ocean freight costs.
• Online sales growth of 67.8% making up 19.4% of total Group Sales and within this, Click
& Collect growth of 79.1%.
• Strong growth on TheMarket.com, which is on track to exceed $100 million in Gross
Transaction Value (GTV) by year end.
• Adjusted Net Profit After Tax
2
of $48.0 million compared to $111.0 million last year
1
, but up
3.9% on FY20 H1.
• Reported Net Profit After Tax of $50.4 million for the half year, down 8.2% compared to last
year
1
, but up 68.6% on FY20 H1.
• Interim dividend of 10.0 cents per share declared.
The Warehouse Group announced half year results for the six months ending 30 January 2022 with
Group sales of $1,730.0 million, down 4.3% on the FY21 half year, but up 2.8% on pre-COVID-19 period
of FY20 half year.
In the six-month reporting period, the Group’s Auckland stores were closed for a total of 84 days due to
COVID-19 Level 4 and Level 3 lockdowns – 46% of Auckland’s normal trading days. While the Group’s
New Zealand wide stores (ex-Auckland) were closed for 23% of normal trading days.
The first quarter was particularly impacted due to lockdown restrictions with sales down 14.6% against
FY21 Q1, but the second quarter saw a pleasing recovery with total Group sales a record $1,099.3 million,
up 2.8% on FY21 Q2 and up 11.2% on pre-COVID-19 FY20 Q2. Total Group sales for the FY22 half
year were up 2.8% compared to pre-COVID-19 FY20 H1.
1
Comparative prior period is 26 weeks ending 31 January 2021.
2
Adjusted Net Profit After Tax adjusted for unusual items.
Record Christmas and summer trading
Group CEO Nick Grayston commented, “We’ve had two quite distinct quarters – the first quarter being
impacted significantly by a large number of our stores being closed and the second quarter with record
sales over the Christmas and summer trading period. It’s another reminder of how challenging the current
environment is.
“We’ve been adaptable and responsive to our customers’ needs. The strength of our product range,
along with our strong online shopping experience has held us in good stead.
“Customers are choosing to purchase goods delivered to their homes or via our Click & Collect service,
with online sales increasing 67.8% and within this Click & Collect increasing by 79.1%.”
Agility and keeping our people safe
“I’d like to commend our team for their incredible passion and resilience. Our Agile way of working
continues to serve us well as we’ve been able to react swiftly to changes in our operational environment
and customer demands. We have moved our people and resources dynamically to where they are
needed most. Our team’s adaptability and resilience has been fantastic to witness, and the Board and
I would like to say a huge thank you to them all”, said Mr Grayston.
“We review our assessment of the risks associated with COVID-19 constantly and have invested in
numerous measures to keep our team members and customers safe.
“I'm very pleased that despite the challenges and change that COVID-19 has brought to our business,
we had record sales in Q2 and our multi-year transformation remains on track.”
Higher cost environment
Margins were impacted due to disruptions to supply chain, increased ocean freight costs, and change in
trading brands contribution and product mix as more customers shopped online. In addition, the Group
had increased spend on operations from prioritising team and customer safety while operating under
COVID-19 guidelines.
Gross Profit decreased 8.5% to $599.6 million, while Gross Profit Margin decreased 150 basis points to
34.7%. Group Operating Profit decreased 57.2% on the prior period to $65.5 million
3
.
Reported Net Profit After Tax, including unusual items, decreased 8.2% to $50.4 million. Adjusted Net
Profit After Tax was $48.0 million, compared to $111.0 million last year prior to the repayment of the
$67.6 million (before tax) wage subsidy in December 2020.
Key brand performance
The Warehouse sales decreased 7.4% to $895.4 million for the half year due to COVID-19 related store
closures throughout Auckland and New Zealand. Customers pivoted to shopping online with The
Warehouse online sales increasing a staggering 93.6% to $119.0 million making up 13.3% of total sales,
while our popular Click & Collect service increased 122.3% making up 47.3% of all online sales.
Warehouse Stationery sales were also impacted by store closures with sales decreasing 10.6% to
$122.0 million. Warehouse Stationery online sales increased 54.2% to make up 17.5% of total sales,
with Click & Collect sales increasing 85.4% making up 29.8% of online sales.
Noel Leeming held up relatively well despite COVID-19 disruption and store closures with sales down
slightly at 1.8% to $582.7 million. Online sales increased 79.0%, while Click & Collect sales increased
58.0%, as customers continued to embrace our 1-hour Click & Collect service to fulfil their online
shopping.
3
Operating profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure. A reconciliation between adjusted operating
profit and Earnings Before Interest and Taxation (EBIT) is located on slide 35 of the FY22 interim results presentation and Note
5 of the financial statements for the six months ended 30 January 2022.
Torpedo7 continued its sales momentum with 14.9% sales growth to $97.5 million despite COVID-19
disruption and store closures. Torpedo7 online sales increased 46.6% making up a significant 39.3% of
total sales, while Click & Collect sales increased 64.1%. Torpedo7 also opened two new stores since
FY21 H1 – Napier and Invercargill – bringing the total number of stores to 22.
TheMarket.com has continued to grow as the Group’s cornerstone online marketplace, with over 6,200
brands and more than 3 million available products. The platform now has over 497,000 active customers,
with customer spend up 20% half on half. TheMarket.com is on track to deliver more than $100 million
Gross Transaction Value (GTV) for the full year.
Cash and liquidity
The Group had cash on hand at half year end of $150.0 million (FY21: $160.5 million) and total liquidity
including cash and available facilities of $480.0 million (FY21: $490.5 million).
Dividend announced
Chair Joan Withers confirmed an interim dividend for the FY22 half year of 10.0 cents per share, in line
with the Group’s policy to distribute at least 70% of adjusted net profit after tax. “We are pleased to be
able to declare an interim dividend despite the disruptions of COVID-19”, Ms Withers said.
The dividend will be fully imputed and paid on 26 April 2022 to shareholders on the Group’s share register
as at the close of business on 6 April 2022.
Economic outlook
“Looking ahead we are optimistic, but the remainder of FY22 will not be without bumps. Moving through
the acute phase of Omicron as well as opening our borders to tourism will have important positive
downstream effects. However ongoing uncertainty created by COVID-19 and the war in Ukraine remain
significant impacts for the global economy and our own. Shipping and freight costs as well as inflation
are also contributing factors for New Zealand.
“With cost of living increasing, every dollar needs to go as far as possible for our customers and we are
focused on providing excellent value. Things that matter like quality and affordable clothing, and a typical
Kiwi breakfast: eggs, bread, milk, coffee, butter, oats, and Weet-Bix - if you buy this at The Warehouse,
you’ll save over $6 compared to everyday grocery prices with a key grocery compete
4
. People are seeking
out alternatives where they know they are getting great value and that’s us”, said Mr Grayston.
Due to the continued uncertainty in the trading environment the Board does not consider it appropriate
to provide full year profit guidance at this time. The Board will continue to assess this position ahead
of year end.
ENDS
For further information, please contact:
Investors and Analysts
Jonathan Oram, Chief Financial Officer via Kim Russell
+64 9 488 3285 or +64 21 452 860
kim.russell@thewarehouse.co.nz
Media
Nick Grayston, Group Chief Executive Officer via Jordan Schuler
+64 21 143 6930
media.enquiries@thewarehouse.co.nz
4
Source: TWG Insights. Based on average full-price basket of eggs, bread, milk, coffee, butter, oats and Weet-Bix on 18 Mar
2022 costing $29.03 at The Warehouse and $35.61 at Countdown.
---
The Warehouse Group
FY22 Interim Results
22 March 2022
CHAIR’S UPDATE, Joan Withers
GROUP UPDATE, Nick Grayston
GROUP FINANCIALS, Jonathan Oram
DIVISIONAL PERFORMANCE, Jonathan Oram
FY22 OUTLOOK, Joan Withers
PROGRESS ON STRATEGY, Leadership Squad
2
Contents
3
9
16
24
30
37
Chair’s Update
Joan Withers
The half year in review was a difficult trading period for the
company.
During the six months ending January 2022, Auckland was in
Level 3 and 4 lockdown for a total of 84 days meaning our stores
were closed during this time, with the rest of New Zealand moving
in and out of Level 3 and 4.
As a result of these lockdown measures, our Auckland stores
were closed for 46% of our normal trading days, and across the
rest of New Zealand our stores were closed for 23% of our normal
trading days during the FY22 half year.
There has been disruption to our supply chain and increased
ocean freight costs which have had some impact on sales and
gross profit margin. There has also been a cost impost in making
sure our team was safe in the context of the pandemic, providing
greater remuneration equity and in increasing our marketing
investment in TheMarket.com.
4
Thestrength of our product range, along with our
strong online shopping experience has held us in
good stead despite the impact COVID-19 related store
closureshad on the Group's performance.
Despite this, our sales and margins have held up relatively well.
However, each of our brands experienced a decline in operating
margin percentage compared to the FY21 half year, and all except
Torpedo7 had lower revenues than the previous corresponding
period.
The charts in the presentation show that taking out the aberration
of the COVID-19 impacted period, our trajectory versus the FY20
half year has been positive.
The investment we have made in moving to an Agile operating
model combined with the exceptional leadership of our Group
CEO and Executive Leadership Squad and the dedication and
commitment of our team members means we have been able to
again successfully navigate the challenges we have encountered.
5
Our People
Across our stores,
distribution centres and
support centres, our team
membershave gone above
and beyond to ensure we
meet our customers’ needs
and wants.
Agile way of working
This means we are able to
pivot and respond to changes
in our operating environment
and customer demands, and
to move our people around to
where they are needed most.
Our Ecosystem
We are growing our customer
centric ecosystem to provide
more frictionless shopping
experiences and create
greater customer value. Our
mix of store footprint and
market leading digital assets
enables us to serve customers
in this changing market.
Our supply chain
The Group’s robust shipping
and stock management
controls have managed
inventory levels in a period
where there has been supply
chain disruption and higher
freight costs.
1.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation between Adjusted and Statutory NPAT can be found on slide 35 of this results presentation and in Note 5 of the Financial Statements for the six months ended 30 January 2022.
2.Online Sales includes The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7, sales through 1-day.co.nz, revenue from TheMarket.com; but excludes TheMarket.com gross transaction value(GTV).
3.Includes Click & Collect sales through The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 only, excludes Marketpointsales.
4.The Group held cash on hand of $150.0m (FY21 H1: $183.6m) at balance date, combined with available bank facilities of $330.0m, providing liquidity of $480.0m (FY21 H1: $513.6m).
Online sales
(2)
$335.9m
Up 67.8% on FY21 H1, making up
19.4% of total Group Sales which was
up from 11.1% in FY21 H1.
Click & Collect sales $151.8m
Up 79.1% on FY21 H1 and making up
50.1% of all online sales
(3)
$1,683.4
$1,808.3
$1,730.0
FY20 H1FY21 H1FY22 H1
Group Sales ($m)
$566.1
$655.4
$599.6
FY20 H1FY21 H1FY22 H1
Gross Profit ($m)
$46.2
$111.0
$48.0
FY20 H1FY21 H1FY22 H1
Adjusted NPAT
(1)
($m)
-$68.6
$183.6
$150.0
FY20 H1FY21 H1FY22 H1
Cash Balance ($m)
Gross Profit margin 34.7%
Down 150bps from 36.2% in FY21 H1
but up 110bps from 33.6% in FY20 H1.
Gross profit margin was above pre-
COVID-19 levels despite increase in
supply chain and freight expenses.
Reported NPAT $50.4m
Down 8.2% from $55.0m in FY21 H1
and up from $29.9m in FY20 H1.
Net cash on hand $150.0m
Total liquidity $480.0 million
(4)
Interim results highlights
FY22
6
Strong performance considering 23% of normal store trading days across
the Group were lost due to lockdown measures
The record date for the dividend will be 6 April 2022 and the
dividend will be paid on 26 April 2022.
This represents a pay-out ratio of 72.2% of the FY22 half year
adjusted net profit after tax and is in line with our policy of
distributing at least 70% of adjusted net profit subject to Board
discretion.
7
Dividends
7
10.0
9.0
13.0
10.0
FY18FY19FY20FY21FY22
Historical interim dividends (cps)
Carried over 17,500 unique products with
sustainable features, accounting for over $111
million in sales during the half year.
We have continued our sustainability journey in the six months to 30 January 2022:
Diverted 75.8% of operational waste from
landfill in FY22 H1.
Reduced Scope 2 emissions
(1)
by an
estimated 2.8%in FY22 H1.
$1.3 millionraised for New Zealand charities
and communities in FY22 H1 including $111k in
support of The New Zealand Red Cross Tonga
Tsunami relief.
Refinanced $140 million of bank facilities
into Sustainability Linked
Loansincluding sustainable packaging,
carbon emissions and gender targets.
1.Scope 2 emissions relate to the consumption of electricity used in the operation of our store portfolio, Distribution Centresand Store Support Office. Scope 2
emissions typically account for 25% of total The Warehouse Group emissions. Numbers are yet to be ToitūCarbonzerocertified.
Sustainability
Work progressed with the Board-level
Environmental and Social Sustainability
Committee to govern the Company’s environmental,
social and sustainability responsibilities.
8
Group Update
Nick Grayston
•In FY22 we continued to embed Agile principles in the way we work. This
has enabled us to pivot and respond to changes in our operational
environment, meet customer demands, to move our people and reallocate
resources to where they are needed most.
•We review our assessment of the risks created by COVID-19 continuously,
and update the measures used to keep our team members and customers
safe.
•We increased staff levels to ensure people could take time off when they
needed, increased distancing in our distribution and fulfilment centres, store
greeters to provide oversight of customer scanning at entry, and undertook
full health and safety assessments with external independent support.
These measures did come with increased costs, but we made the choice
to prioritise the health and wellbeing of our people and customers.
•We introduced a mandate to ensure team members were vaccinated against
COVID-19 in order to perform their roles.This mandate came into effect from
16 January 2022.
•The Group began Rapid Antigen Testing for COVID-19 in November 2021.
•A full remuneration review was conducted that saw us realign salaries to
market competitive rates across core roles and achieved gender pay equity.
•We are proud of ourcommitment to pay strong wages, entitling the majority of
our team to be paid at least $22.75 an hour, compared to NZ minimum wage
of $20.00. This will increase further to at least $23.58 in August 2022 and will
include additional compensation for team members fully trained across store
functions and have been with us for at least 5 years.
1.Pay Equity measures the median hourly salary or wages of female team members against male team members for the same role.A percentage below 100% indicates male team members’ median hourly rate is higher than female team
members.A percentage above 100% indicates female members’ median hourly rate is higher than male team members.A percentage of 100% indicates gender pay equity.
Looking after our people
2,500
vaccines
provided to our
people in stores,
DCs and in the SSO
$805,000
paid to our people
through our vaccine
incentive scheme
1 Jan
2022
launched fully paid
26-week parental
leave for all
permanent team
members
100%
gender pay
equity
across the Group
(1)
3,635
hours
of training conducted
on Udemy for
Business in FY22 H1
10
Build a customer ecosystemBuild the future experience
Invest in our infrastructure to excel
in retail fundamentals
Strategic Themes
Purpose
Helping Kiwis live better every day
Our
Strategic Priorities
Delivering our strategic priorities
•Engage new and existing customers
by solving their needs and wants
better
•Offer a rewarding, seamless and
frictionless customer experience
•Meet & exceed changing
consumer expectations
•Optimise store footprint and
develop supply chain
•Provide “What I want, where I
need it, when I choose”
•Material progress on core system
replacement
•Scoping of further core investment
•Maintained long term financial
security
FY22 H1
Achievements
•Weighted average in-store net promoter
score (NPS) increased by +3.7 points
year on year for the Group
•Online sales increased 67.8% and
Click & Collect sales grew 79.1%
•2 more SWAS integrations bringing total
to 27.
•Significant progress on core system
projects –WMS, ERPFI and MDM
•ERPFI project is on track for finance
release in April
•Realtime Inventory available to sell
(ATS) for onlineis on track for release in
September
•Scoping work underway on supply chain
network and complete on Group Order
Management System (“GOMS”)
•Liquidity of $480.0 million,with no
drawn debt
•Launched MarketClubin The Warehouse
and on TheMarket.com The first steps
towards a Group loyalty programme
•Integrated 1-day.co.nz into
TheMarket.com –on track to deliver
more than $100m GTV in FY22
•SKU reduction of 12% in the period –
11.0% for TWL and 12.7% for WSL
•The Warehouse mobile app spent 46
days as the #1 most downloaded
shopping appduring the half
•All our mobile apps are rated 4.7+ with
over 67k reviews on iOS App Store
11
•Our customer-centric ecosystem is focused on solving
customer problems and providing a frictionless shopping
experience, creating greater customer value.
•We have strong ecosystem foundations in place with an
established physical footprint and market leading digital
assets.
•We have confirmed the rollout of a unified loyalty programme
across the Group as MarketClub.
•In August 2021, we announced a cornerstone strategic
investment in Zoom Health –we have a shared vision to offer
convenient and affordable access to healthcare to all Kiwis.
•Further improvements will make customer shopping journeys
across all our brands faster, easier and more personalised
through unified data, platforms and people –while remaining
focused on the fundamentals of delivering exceptional value
and new assortments with improved customer fulfilment and
payment options in store and online.
Our broad ecosystem
Solving customer problems
and serving them well
12
•Launched MarketClubgroup loyalty programme in The
Warehouse and TheMarket.com in October 2021.
•This will eventually be rolled out Group-wide across all brands.
•First step towards a consolidated Group-wide customer loyalty
programme that is both rewarding and frictionless, providing
unmatched value for customers.
•MarketClubmembers are more engaged shoppers, with higher
spend, higherfrequency, and higher average order value
behaviours vs non-members.
•Customers are also telling us they love the new programme,
with members showing higher in-store and in-app net promoter
scores (NPS) vs non-members
(1)
.
•Investments underway into systems and backend tools to
support future customer features and benefits, as well as
supporting the unified expansion of the programme across the
Group’s full portfolio of brands.
56%
of Torpedo7 and
Noel Leeming
sales toloyalty
members
4.2
million
unique customer
records across
the Group
(2)
1.Source: Qualtrics and TWG Insights
2.Source: Salesforce Service Cloud
Launched
October
2021
Loyalty programme
gathering momentum
13
497k
active
customers
Per
customer spend
+19.7%
in FY22 H1 vs
FY21 H1
22%
of NZ online
shoppers
transacted with
us in last 12
months
6,281
Brands
3 million
Products
On track to
deliver over
$100m
GTV
1
in FY22
1.GTV = Gross transaction value
30
million
online sessions in
FY22 H1 –up 50%
14
“Oh wow. Never had such a great shopping online experience in NZ before. Choice
galore. Such a bargain. Free delivery with club membership. HAPPY ☺”
★★★★★
Customer review
3
rd
Party GTV
1
growth of
176%
in FY22 H1 vs
FY21 H1
65.8
64.1
84.9
73.8
97.5
0
20
40
60
80
100
120
FY20 H1FY20 H2FY21 H1FY21 H2FY22 H1
-4.2
-13.5
5.2
-1.9
2.8
-15
-10
-5
0
5
10
FY20 H1FY20 H2FY21 H1FY21 H2FY22 H1
Sales ($million) –by half year
Operating Profit ($million) –by half year
•Sales momentum has remained strong despite COVID-19 store closures in
the half year, with 14.9% growth on prior year and online sales growth of
46.6%.Auckland stores were impacted the most closing for 84 days with a
decline in sales year on year of 8.5%.
•Torpedo7’s own home brand of merchandise is expanding and selling
extremely well –with home brand mix now making up 36% of all sales with
a growth strategy to deliver 50% of sales by FY24.
•Operational improvements are ongoing. We have a new end to end system
implementation going live in 2023 which will re-platform the business and
enablefurther improvements.
•We have invested in infrastructure and operational improvements to
empower Torpedo7 with the ability to grow and deliver at scale.In the
medium term (3-5 years) we expect to see 20-30% increase in the number
of stores, subject to location availability.
Sales momentum continues
online sessions -up 50% in FY22H1"
15
16
For the six months ended 30 January 2022
1.Operating profit excludes the impact of NZ IFRS 16 and is a non-GAAP measure. A reconciliation between adjusted
operating profit and Earnings Before Interest and Taxation (EBIT) is located on slide 35 and in Note 5 of the
financial statements for the six months ended 30 January 2022.
2.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation
between Adjusted and Statutory NPAT is located on slide 35 and in Note 5 of the financial statements for the six
months ended 30 January 2022.
•Group sales were down 4.3% as New Zealand experienced COVID-19
lockdown periods and the Group stores were closed for 23% of normal
trading days across New Zealand, and 46% in Auckland.
•The Warehouse and Warehouse Stationery experienced the highest decline
in sales of 7.4% and 10.6%, respectively, while Noel Leeming held up
relatively well with sales decline of 1.8%.
•Torpedo7 performed exceptionally well, continuing recent sales momentum
despite the COVID-19 disruptions, with sales up 14.9% in the half year.
•Gross profit margin was 34.7% in the half, being impacted by change in
brand and product mix during lockdown periods, increased cost of freight,
and a higher proportion of online sales.
•Cost of doing business ("CODB") increased 6.3% and increased as a
percentage of sales to 30.9%.Increased staff requirements and costs to
operate safely under COVID-19 protocols had a significant impact on
CODB.The increase in staff wage rates and payment of vaccine incentives
also increased employee expenses.
•CODB also reflected an increase in advertising and promotional activities
and increased investment in TheMarket.com.
•We are hugely focused on returning CODB to the trend we have been on
once COVID-19 lockdown uncertainties are behind us.
•Our operating cash flow control was strong through the period with an
increase in operating cashflow of 46.8%.
$ million
FY22 H1FY21 H1Variance
Group Sales
1,730.0 1,808.3
(4.3%)
Gross Profit
599.6 655.4
(8.5%)
Gross Profit Margin %34.7%36.2%(150 bps)
CODB
534.1 502.4
6.3%
CODB %30.9%27.7%320 bps
Operating Profit
1
65.5 153.0
(57.2%)
Operating Profit Margin %3.8%8.5%(470 bps)
NPAT (reported)
50.4 55.0
(8.2%)
NPAT (adjusted)
2
48.0 111.0
(56.7%)
Operating Cash Flow
161.5 110.0
46.8%
Dividends (cps)
10.013.0
(3.0)
Group performance
17
0
200
400
600
800
1,000
1,200
202020212022
Q1Q2Q3Q4
$m
FY22 Q1FY21 Q1FY20 Q1
Var % to
FY21 Q1
Var % to
FY20 Q1
FY22 Q2FY21 Q2FY20 Q2
Var % to
FY21 Q2
Var % to
FY20 Q2
FY22 H1FY21 H1FY20 H1
Var % to
FY21 H1
Var % to
FY20 H1
The Warehouse
298.2 379.5 368.9 -21.4 % -19.2 % 597.2 587.8 569.9 + 1.6 % + 4.8 % 895.4 967.3 938.8 -7.4 % -4.6 %
Warehouse Stationery
48.2 61.8 63.0 -22.0 % -23.5 % 73.8 74.8 70.8 -1.3 % + 4.2 % 122.0 136.6 133.8 -10.7 % -8.8 %
Noel Leeming
238.7 250.8 225.0 -4.8 % + 6.1 % 344.0 342.4 287.8 + 0.5 % + 19.5 % 582.7 593.2 512.8 -1.8 % + 13.6 %
Torpedo7
34.2 33.8 23.8 + 1.2 % + 43.7 % 63.3 51.1 42.0 + 23.9 % + 50.7 % 97.5 84.9 65.8 + 14.8 % + 48.2 %
Other
1
11.4 12.6 14.1 -9.5 % -19.1 % 21.0 13.7 18.1 + 53.3 % + 16.1 % 32.4 26.3 32.2 + 23.2 % + 0.6 %
Total Group Sales
630.7 738.5 694.8 -14.6 % -9.2 % 1,099.3 1,069.8 988.6 + 2.8 % + 11.2 % 1,730.0 1,808.3 1,683.4 -4.3 % + 2.8 %
•FY22 Q1 sales were significantly impacted due to COVID-19
lockdowns which were put in place just 2 weeks into the start of
the financial year –with Q1 sales down $107.8 million (14.6%)
compared to FY21 Q1 and 9.2% compared to FY20 Q1.
•Sales rebounded in the second quarter to be 2.8% up on FY21
Q2,as the country moved to Level 3, then subsequently to the
traffic light system –allowing retail stores to open once again.
•The Warehouse and Warehouse Stationery were most impacted
by COVID-19 restrictions in the first quarter –decreasing sales
21.4% and 22.0% respectively, compared to FY21 Q1.
•Torpedo7 weathered the disruption extremely well –with Q1
sales up 1.2% vs FY21 Q1, and up 43.7% vs FY20 Q1.
Torpedo7 sales momentum continued significantly in Q2 –up
23.9% vs FY21 Q2 and 50.7% vs FY20 Q2.
2.8% vs FY21
11.2% vs FY20
14.6% vs FY21
9.2% vs FY20
Level 4 Lockdown
25 Mar –13 May
2020
Level 4 Lockdown
12 -30 Aug 2020
FY22 H1 sales –quarterly sales trend
18
1.Other sales includes sales through 1-day.co.nz, revenue from TheMarket.com (excluding gross transaction value(GTV)), and other Group operations and eliminations.
38.8%
43.6%
22.6%
28.3%
42.2%
48.6%
22.7%
37.8%
40.0%
46.9%
22.5%
35.7%
The WarehouseWarehouse StationeryNoel LeemingTorpedo7
FY20 H1FY21 H1FY22 H1
Gross Profit Margin (%) by Brand
•Group Gross Profit Margin decreased 150 basis points to 34.7% but was up significantly compared to previous pre-COVID-19 years.
•Gross margin was impacted due to:
oHigher cost of freight for online fulfilment and ocean freight;
oChange in brand and product mix as Noel Leeming increased its share of total Group sales;
oA higher proportion of online sales; and
oContinued reduction in stock provisions –FY22 H1 provisions were $2.8 million while FY21 H1 benefited from $9.8 million stock provisions.
•The Warehouse Gross Profit Margin was most impacted by these factors.
Group Gross Profit Margin (%)
FY21 H1 to FY22 H1
Gross Profit Margin
Group Gross Profit Margin (%)
32.7%
32.5%
33.6%
36.2%
34.7%
FY18 H1FY19 H1FY20 H1FY21 H1FY22 H1
19
•Cost of doing business (“CODB”) increased as the Group managed
the operations of stores, distribution and fulfilment centres under
COVID-19 health and safety regulations and mandated operating
requirements.
•Keeping our people and customers safe is the utmost priority for us,
and particularly during times of COVID-19 uncertainty became even
more important.
•In FY22 H1, we brought in more people to our stores as door greeters
to scan QR codes and monitor the number of people in stores to allow
our stores to open and operate under COVID-19 guidelines.We
increased staffing in our distribution and fulfilment centres to handle
the increase in online sales and Click and Collect deliveries.
Employee expenses also increased with increased staff wage rates
across the Group.
•Depreciation and lease expense increased as a result of increased
investment in fixed assets and IT software.
•Other costs include increased advertising and promotion particularly
in digital media, investment in TheMarket.com, COVID-19 non-labour
operating costs, and payments made to our employees for the Group-
wide vaccine incentive.
Cost of doing business as percentage of Sales
* Cost of doing business is presented before the impact of IFRS-16.Depreciation and amortisation is on plant,
property, equipment and software only.Lease expenseincludes property rent and lease operating expenses.
17.0%
15.9%
17.2%
1.7%
1.4%
1.7%
4.1%
3.8%
3.9%
6.8%
6.6%
8.1%
29.6%
27.7%
30.9%
FY20 H1FY21 H1FY22 H1
Employee ExpensesDepreciation*Lease Expense*Other Expenses
Cost of doing business
20
$ million
Jan-2022Jan-2021Variance
Inventory
530.6 497.7
32.9
Trade and other receivables
89.6 86.1
3.5
Trade and other payables
(600.3)(501.6)
(98.7)
Provisions
(76.5)(83.9)
7.4
Working Capital
(56.6)(1.7)
(54.9)
Fixed assets
315.4 272.6
42.8
Investment
4.2 -
4.2
Funds Employed
263.0 270.9
(7.9)
Tax Assets
81.0 93.0
(12.0)
Derivatives
31.4 (31.8)
63.2
Goodwill and Brands
73.0 73.0
-
Right of Use Assets
699.9 751.4
(51.5)
Capital Employed
1,148.3 1,156.5
(8.2)
Shareholders' equity
450.5 431.2
19.3
Minority interests
(3.1)(1.2)
(1.9)
Cash
(150.0)(183.6)
33.6
Lease liabilities
850.9 910.1
(59.2)
Sources of Funds
1,148.3 1,156.5
(8.2)
Book gearing
61.0%62.8%(180) bps
Liquidity
480.0513.6(33.6)
•The Group was in a negative working capital position at the end of FY22half
year, with an increased level of inventory offset by an increased payable
balance.
•Inventory levels increased at half year end, coming off lower than normal
levels at the end of FY21.FY22 half year inventory includes a higher level of
Goods in Transit with the earlier timing of Chinese New Year this year, and
reduced stock provisions due to the cleaner closing inventory position.
•Despite higher inventory levels at half year end, improved inventory
management has seen Group stockturn
(1)
improve from 4.9x at the FY21 half
year to 5.1x at the FY22 half year.
•Increased payables at half year end is largely due to timing and is expected
to normalise by year end.
•Fixed assets increased due to our continued capital investment, particularly
in core systems and digital infrastructure, with Investments of $4.2 million
reflecting the acquisition of 26% interest in ZOOM Health Limited in August
2021.
•Net cash remained strong at $150.0 million, along with undrawn available
banking facilities of $330.0 million providing total liquidity of $480.0
million.This is slightly above the Group’s target liquidity requirement of $350
million -$450 million.
As at 30 January 2022 (comparative 31 January 2021)
Balance sheet
1.Stockturn is calculated over the last 12 months.
21
$ million
FY22 H1FY21 H1Variance
Trading EBITDA
1
164.8247.0
(82.2)
Restructuring costs
-(11.3)
11.3
Wage subsidy
-(67.6)
67.6
Taxes Paid
(28.6)(23.1)
(5.5)
Interest Paid
(2)
(18.5)(22.5)
4.0
Working Capital
46.1 (13.2)
59.3
Other items
(2.3)0.7
(3.0)
Operating Cash Flow
161.5 110.0
51.5
Capital Expenditure
(57.7)(39.4)
(18.3)
Divestments
-0.1
(0.1)
Lease principal repayments
(48.7)(48.6)
(0.1)
Close out derivatives
-(6.6)
6.6
Purchase of Associate and Minority
(4.8)-
(4.8)
Dividends Received
0.2 -
0.2
Dividends Paid
(61.0)-
(61.0)
Net Cash Flow
(10.5)15.5
(26.0)
Opening Net Cash
160.5 168.1
(7.6)
Closing Net Cash
150.0 183.6
(33.6)
•Operating cash flow increased to $161.5 million in FY22 H1
compared with $110.0 million in FY21 H1 due to restructuring
costs and the repayment of the wage subsidy occurring in the
prior period, and the movement to a negative working capital
position in the current period.
•Capital expenditure cash flow was $18.3 million higher than
last year to $57.7 million in FY22 H1, reflecting increased
investment in core systems, store renewals, and customer
focused digital initiatives in our stores.
•The Group acquired 26% interest in ZOOM Health Limited in
August 2021 for $4.5 million.
•The Group returned to paying dividends in FY21 and FY22 –
with the FY21 final dividend paid in the current reporting
period. Due to the COVID-19 pandemic and uncertain trading
environment at the time, there was no FY20 final dividend
which would have otherwise been paid in FY21 H1.
1.Trading EBITDA represents Earnings before interest, taxation, unusual items, depreciation and amortisation.
2.Interest paid includes $18.4m (FY21 H1: $19.2m) interest on lease liabilities. Refer to Note 15 of the Financial
Statements for the six months ended 30 January 2022.
For the six months ended 30 January 2022
Cash flow
22
•FY22 H1 capex was $57.4 million, compared to $40.0
million in FY21 H1.
•The Group’s major investments included continued
development of core systems including the Warehouse
Management System, Master Data Management, and ERP
finance and inventory systems.
•Store renewals included the refurbishment of some existing
stores including The Warehouse Porirua and Petone, two
new SWAS integrations in Invercargill and Upper Hutt, and
the new Torpedo7 Invercargill store which opened in the
second quarter.
•We expect capital expenditure for the full year FY22 to be
close to $135 million.
Core Systems$ 17.4m
Store Renewals$ 13.0m
Other Information Systems$ 10.7m
Digital and Customer$7.9m
Supply Chain$1.3m
Other$7.1m
Total Capital Expenditure$ 57.4m
30.3%
22.6%
18.6%
13.8%
2.3%
12.4%
Capital expenditure
$57.4m
Capex Spend
For the six months ended 30 January 2022
23
24
51.8%
7.1%
33.7%
5.6%
1.8%
FY22 H1 Group Sales
$1,730.0m
1.Other sales (1.8%) includes sales through 1-day.co.nz, revenue from TheMarket.com (excluding gross transaction
value(GTV)), and other Group operations and eliminations.
2.Other items in operating profit include corporate costs and other unallocated overheads.
Divisional Summary
$97.5m
$895.4m
$582.7m
$122.0m
7.4%10.6%1.8%14.9%
25
Positive performance considering
23% of normal store trading days lost due to lockdown measures
FY22 H1 Operating Profit ($million)
Other
(2)
For the six months ended 30 January 2022
New Zealand's leader on value
•Sales in FY22 H1 were down 7.4% against the prior period due to the COVID-
19 lockdown. Auckland stores were most impacted as they were unable to
trade for 84 days. Foot traffic was down 17% which was partially offset by a
year on year uplift in the average basket size.
•Online sales increased by 93.6% in FY22 H1 compared to the prior period,
driven by the COVID-19 lockdown forcing a shift to the online channel. Click
and Collect sales were up 122.3% as stores were still able to fulfil online
orders during the lockdown periods, making up 47.3% of online sales.
•Gross Profit Margin was down 220 bps, as we had a high contribution of online
sales which have a lower margin % due to freight costs. In addition, ocean
freight costs were higher than expected.During the period we continued to
have a strong focus on managing the sell through on seasonal product lines
and increasing the proportion of our stock that is required all year round in
order to reduce clearance and promotional activity.
•Home and Technology product categories were most impacted with sales
declines in Housewares, Home décor, Communications and Televisions,
combined with the removal of product lines in Fine Jewellery and Fireworks.
The sales downside was partly offset by growth in Sporting and Toys.
•CODB increased by 9.9% due to planned wage increases and an investment
in health and safety to keep team members safe. The Distribution Centre team
memberswere provided with daily Rapid Antigen Testing. COVID-19
compliance in stores included additional resources for maskchecking, QR
Code scanning and queuemanagement.
•The opening of a new The Warehouse store in Ormiston in March 2021 was
offset by the closure of The Warehouse Whangaparaoa in FY21 Q3.
$millionFY22 H1FY21 H1Variance
Sales
895.4967.3
(7.4%)
Gross Profit
358.1 408.4
(12.3%)
Gross Profit Margin %40.0%42.2%(220 bps)
Cost of doing business (CODB)
314.1 285.8
9.9%
CODB %35.1%29.5%560 bps
Operating Profit
44.0 122.6
(64.1%)
Operating Profit Margin %4.9%12.7%(780 bps)
Online sales
119.061.5
93.6%
Online as a % of sales
13.3%6.4%
694 bps
(1)
Click and Collect as a % of online sales
47.3%41.2%
610 bps
(1)
Number of stores
9090
-
26
1. Calculated based on unrounded % numbers.
SWAS strategy delivering improvements
for customers and the business
•Sales were down 10.6% on the prior period, with transactions (in-store and
online) down 13% and foot traffic down 14%, slightly offset with an increase in
average basket size as compared to FY21.
•Online sales have continued to grow in FY22 H1, increasing by a significant
54.2% compared to the prior year, with Click & Collect sales growing 85.4%,
making up 29.8% of online sales.
•Gross Profit decreased 13.8% to $57.2 million, through lower sales volumes
and rebates, and a 170bps deterioration in Gross Profit Margin. This is driven
by missed rebates as a result of lower volumes in Technology.
•CODB decreased by 3.4% despite some investment in store labour with
respect to in-store COVID-19 compliance requirements.A reduction in lease
costs and advertising offset this investment.
•Operating Profit decreased 43.6% to $9.7 million, with Operating Profit Margin
declining a significant 470bps to 7.9%.
•Stationery, and Print and Consumable categories were most impacted with
sales declines in the half year, while Print & Copy centres were heavily
impacted as they were only able to resume trading in Level 3 and at half
capacity due to distancing requirements.
•The decrease in stores compared to FY21 H1 is due to the closure of
Henderson and Hornby in FY21 H2, offset with the opening of a new store
Ormiston in March 2021.
•A total of 2 SWAS integrations were implemented in FY22 H1 –Invercargill
and Upper Hutt –bringing the total to 27.
$ millionFY22 H1FY21 H1Variance
Sales
122.0 136.6
(10.6%)
Gross Profit
57.2 66.4
(13.8%)
Gross Profit Margin %46.9%48.6%(170 bps)
Cost of doing business (CODB)
47.5 49.2
(3.4%)
CODB %39.0%36.0%300 bps
Operating Profit
9.7 17.2
(43.6%)
Operating Profit Margin %7.9%12.6%(470 bps)
Online sales
21.313.8
54.2%
Online as a % of sales
17.5%10.1%
735 bps
(1)
Click and Collect as a % of online sales
29.8%24.8%
497 bps
(1)
Number of stores
7071
(1)
For the six months ended 30 January 2022
27
1. Calculated based on unrounded % numbers.
$millionFY22 H1FY21 H1Variance
Sales
582.7 593.2
(1.8%)
Gross Profit
130.9 134.7
(2.9%)
Gross Profit Margin %22.5%22.7%(20 bps)
Cost of doing business (CODB)
101.1 101.6
(0.6%)
CODB %17.4%17.1%30 bps
Operating Profit
29.8 33.1
(9.9%)
Operating Profit Margin %5.1%5.6%(50 bps)
Online sales
124.269.4
79.0%
Online as a % of sales
21.3%11.7%
961 bps
(1)
Click and Collect as a % of online sales
57.0%64.4%
(756) bps
(1)
Number of stores
7173
(2)
Strong global brands and customer relationships,
underpinned by service
•Sales were down on the prior period due to the Q1 lockdown and stock
availability, as our suppliers grappled with disruptions to their supply
chains.Even so, we ended FY22 H1 with the second highest H1 sales result
in the brand’s history at $582.7 million.
•The lockdown caused a significant shift to the online channel, resulting in
online sales increasing 79.0% and contributing more than 20.0% of total sales.
Click & collect continues to be our customers’ favoured option for fulfilling their
online purchase, increasing 58.0% in the half and comprising 57.0% of online
sales fulfilment.
•TWG Business (our business to business division) saw a decrease on the
prior period as our customers in this division were also impacted by the
lockdown and their own supply chain issues.
•Apple products (excluding iPhones), print and computer product categories all
saw strong sales growth in the half year, while many other product categories
experienced sales decline against FY21 H1 and this was more pronounced
within cellular, cameras and drones product categories.
•Increased online sales came at the expense of Gross Profit Margin %, as the
sales mix tended towards lower margin products, combined with increased
freight costs. There was an improvement in Q2 as more stores were able to
open, resulting in a recovery to 22.5% Gross Profit Margin for the half year.
•CODB came in slightly lower than in FY21 H1, contributing to an Operating
Profit of $29.8m, down 9.9% on the prior period.
•Since FY21 H1, we closed three Noel Leeming stores (Hunters Plaza,
Morrinsville and Manukau Westfield) and opened one new store in Ormiston.
For the six months ended 30 January 2022
28
1. Calculated based on unrounded % numbers.
$millionFY22 H1FY21 H1Variance
Sales
97.5 84.9
14.9%
Gross Profit
34.8 32.1
8.4%
Gross Profit Margin %35.7%37.8%(210)
Cost of doing business (CODB)
32.0 26.9
18.9%
CODB %32.8%31.6%120
Operating Profit
2.8 5.2
(45.8%)
Operating Profit Margin %2.9%6.2%(330)
Online sales
38.326.2
46.6%
Online as a % of sales
39.3%30.8%
852 bps
(1)
Click and Collect as a % of online sales
48.3%43.1%
518 bps
(1)
Number of stores
2220
2
Torpedo7 financial results (FY21 and FY20 comparatives) include Torpedo7 only and exclude 1-day which are
now included in TheMarketresults in the Group financial statements.
For the six months ended 30 January 2022
Operational improvements and investment result in
continued sales momentum
•Sales momentum continued, despite COVID-19 store closures, at 14.9% growth
on prior year with online growth of 46.6% closing the gap from sales lost due to
store closures in Q1.Auckland stores were impacted the most –closing for 84
days with a decline in sales of 8.5%.
•Customers embraced Torpedo7 online offering during lockdown, with online
sales increasing 46.6% and Click & Collect service channel increasing 64.1%.
•Gross Profit increased 8.4% to $34.8 million, with FY21 H1 benefitting from
strategic initiatives to reduce aged stock improving Gross Profit Margin %.
•CODB as a percentage of sales tracked ahead of last year due to additional
staffing with respect to COVID-19 compliance requirements, additional freight
costs, and investment in headcount to enable strategic growth initiatives.
•FY22 H1 Operating Profit of $2.8 million is down on the prior year but still in line
with plan towards increased profitability.Operational improvements are ongoing,
with a new ERP going live in 2023 which will re-platform the business
andenablefurther improvements.
•The number of Torpedo7 stores increased to 22 with the Invercargill store which
opened in FY22 Q2 and Napier which opened in Q3 of FY21.
29
1. Calculated based on unrounded % numbers.
The first half of FY22 was largely impacted by store closures in the first
quarter but sales rebounded positively in the second quarter.
We are currently in the midst of dealing with the Omicron variant and this
is impacting foot traffic in our stores across the country.Given our
history with lockdowns and experiences offshore with Omicron, we are
expecting consumer spending to rebound post further declines
inOmicron case numbers and the relaxing of restrictions.
We are conscious of the current cost of living pressures and the impact
of this on our customers.
There also remains some volatility in our supply chain, in both product
supply and cost.
Our financial position remains very strong and the ability of our people to
navigate the volatility over the last two years gives us confidence in
dealing with the uncertainties of the second half.
The Board is pleased to announce a fully imputed interim dividend of
10.0 cents per share for the half year.The record date for the dividend
will be 6 April 2022 and will be paid on 26 April 2022, and represents a
pay-out ratio of 72.2% of the FY22 half year adjusted net profit after tax.
Due to the continued uncertainty in the trading environment the Board
does not consider it appropriate to provide full year profit guidance at this
time.The Board will continue to assess this position ahead of year end.
FY22 Outlook and Dividend
31
-7.4
%
+93.6
%
to 13.3% of total sales
4.9
%
Decrease 780 basis points
+122.3
%
-10.6
%
+54.2
%
to 17.5% of total sales
7.9
%
Decrease 470 basis points
+85.4
%
-1.8
%
+79.0
%
to 21.3% of total sales
5.1
%
Decrease 50 basis points
+58.0
%
2.9
%
Decrease 330 basis points
+14.9
%
+46.6
%
to 39.3% of total sales
+64.1
%
Sales GrowthOperating Profit MarginOnline Sales Growth
Growth in Click &
Collect Fulfilment
Key metrics by brand
33
Strong performance considering 23% of normal store trading days lost due to lockdown measures
•FY22 Q1 sales were significantly impacted due to COVID-19 lockdowns which were put in place just 2 weeks into the start
of the quarter –decreasing sales 14.6% compared to FY21 Q1 and 9.2% compared to FY20 Q1.
•However, sales rebounded in the second quarter as the country moved to Level 3, then subsequently to the traffic light
system –allowing retail stores to open once again.
•The Warehouse and Warehouse Stationery were most impacted by COVID-19 restrictions in the first quarter –decreasing
sales 21.4% and 22.0% respectively, compared to FY21 Q1.
•Torpedo7 weathered the disruption extremely well –with Q1 sales up 1.2% vs FY21 Q1, and up 43.7% vs FY20 Q1. T7
sales momentum continued significantly in Q2 –up 23.9% vs FY21 Q2 and 50.7% vs FY20 Q2.
(100%)
(50%)
0%
50%
100%
150%
200%
250%
300%
(45.0)
(25.0)
(5.0)
15.0
35.0
55.0
75.0
95.0
115.0
135.0
155.0
W1-AugW2-AugW3-AugW4-Aug
W5-SepW6-SepW7-SepW8-SepW9-Sep
W10-OctW11-OctW12-OctW13-Oct
W14-NovW15-NovW16-NovW17-Nov
W18-DecW19-DecW20-DecW21-DecW22-Dec
W23-JanW24-JanW25-JanW26-Jan
Sales (in $Millions)
Variance %Group Sales - FY22Group Sales - FY21
2021 COVID-19 Level 4
lockdown
NZ: 17 Aug –2 Sept
Auck: 17 Aug –21 Sept
2021 COVID-19 Level 3
lockdown
NZ: 2 Sept –7 Sept
Auck: 21 Sep –9 Nov
FY22 H1 Sales -weekly sales trends
34
EBITNPAT
$ million
FY22 H1FY21 H1FY22 H1FY21 H1
Adjusted Earnings
65.5 153.0 48.0 111.0
Restructuring costs
-(11.3)-(8.2)
Ineffective hedge derivatives
-(0.2)-(0.1)
Repayment of COVID-19 wage subsidy
-(67.6)-(48.6)
NZIFRS16
21.8 20.5 2.4 0.9
Reported earnings
87.3 94.4 50.4 55.0
1.To improve the understanding of underlying business performance, the Group adjusts profit for unusual and non-trading items. Unusual items
include profits from the sale of assets and losses associated with adjustments in carrying value of assets, M&A activity, restructuring costs and the
non-cash impact of applying the NZIFRS 16 lease accounting standard.
2.The NZIFRS16 adjustment of $21.8m in FY22 H1 (FY21 H1: $20.5m) represents the difference between the depreciation on Right-of-use-Assets
and old NZGAAP rent expense.
3.Adjusted Net Profit After Tax (NPAT) is before unusual itemsand is a non-GAAP measure.A reconciliation between Adjusted and Statutory
NPAT can be found inNote 5 of the Financial Statements for the six months ended 30 January 2022.
•All Agile and restructuring costs are complete, so there
were no expenses in relation to these incurred in the first
half of FY22.
•The wage subsidy received in March 2020 was voluntarily
repaid to the Government in December 2020 and was
classified as an unusual item.
For the six months ended 30 January 2022
Adjusted vs Reported results
35
•Inventory at the end of the half was higher than recent periods, coming
off historically low levels.The higher carrying value was due tohigher
Goods in Transit mainly from stock purchased just before the half year
end due to the timing of Chinese New Year.
•A small amount of seasonal stock is arriving later than
plannedduetoshipping delays, most will be traded in the tail end of the
season however some will be carried through to thenextseason.
•Despite higher stock levels at year end, improved inventory management
has seen Group stockturn
(1)
improve from 4.9x at the FY21 half year to
5.1x at the FY22 half year.
•The Warehouse and Warehouse Stationery achieved further SKU
reduction with 11.0% for The Warehouse and 12.7% for Warehouse
Stationery.
•Our current clearance levels are well within the targets with TWL at 2.9%
of total stock and WSL at 1.8% vs 3.8% for both brands at the same
period last year.
•Aged inventory has continued to decrease with increased sales and
controlled purchases, with aged inventory
(2)
decreasing from 28.1% in
FY20 to 16.1% in FY21.
•Careful inventory management has meant a cleaner closing
inventorypositionenabling thereduction ofstock provisions from last half
yearof$8.0m,contributingto the increase in inventory value.
Closing inventory ($m)
1.Stockturn is calculated over the last 12 months.
2.Aged inventory is stock on hand greater than 6 months.
Stockturn by Brand
454.3
515.4
345.4
425.1
391.4
430.4
63.5
66.0
48.2
72.7
65.8
100.2
517.8
581.3
393.6
497.7
457.2
530.6
Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22
Retail stockGoods in transit
3.5
6.2
1.9
3.9
8.5
2.5
4.1
8.1
2.8
The Warehouse and
Warehouse Stationery
Noel LeemingTorpedo7
FY20 H1FY21 H1FY22 H1
Inventory management
36
TermDefinitionTermDefinition
C&CClick & CollectMDMMaster Data Management
CODBCost of Doing BusinessNIDCNorth Island Distribution Centre
COGSCost of Goods SoldNIFCNorth Island Fulfilment Centre
DCDistribution CentreNLNoel Leeming
DIFOTDelivered In-Full On-TimeOMSOrder Management Solution
E2EEnd-to-EndOMUOperating Model Update
EDLPEvery Day Low PricePOSPoint-of-Sale
ELSExecutive Leadership SquadSIDCSouth Island Distribution Centre
eNPSEmployee Net Promotor ScoreSSOStore Support Office
ERPFIEnterprise Resource Planning -Finance and InventorySSSSame Store Sales
FCFulfilment CentreSWASStore-Within-a-Store
GBOGroup Business OperationsT7Torpedo7
GEPGroup eCommerce PlatformTWLThe Warehouse
GTVGross Transaction ValueWALTWeighted Average Lease Tenure
GOMSGroup Order Management System WMSWarehouse Management System
LTVCustomer Lifetime ValueWSWarehouse Stationery
GLOSSARY
Glossary
37
This presentation may contain forward looking statements and projections.
There can be no certainty of the outcome and projections involve known and
unknown risks, uncertainties, assumptions and other important factors that
could cause the actual outcomes to be materially different from the events or
results expressed or implied by such statements and projections.
While all reasonable care has been taken in the preparation of this
presentation, The Warehouse Group Limited does not make any
representation, assurance or guarantees as to the accuracy or completeness
of any information in this presentation. The forward-looking statements and
projections in this report reflect views held at the date of this presentation.
Except as required by applicable law or any applicable Listing Rules, the
Relevant Persons disclaim any obligation or undertaking to update any
information in this presentation.
A number of non-GAAP financial measures are used in this presentation. You
should not consider any of these in isolation from, or as a substitute for, the
information provided in the interim financial statements, which are available at
www.thewarehousegroup.co.nz.
This presentation does not constitute investment advice, or an inducement,
recommendation or offer to buy or sell any securities in The Warehouse
Group Limited.
Disclaimer
---
For and on behalf of the Board
Joan WithersDean Hamilton
ChairChair of the Audit and Risk Committee
21 March 2022
The Warehouse Group Limited
For the 26 weeks ended 30 January 2022
Interim Financial Statements
Consolidated Income Statement
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
30 January 31 January 1 August
Note
2022 2021 2021
$ 000 $ 000 $ 000
Retail sales
4
1,729,984 1,808,255 3,414,601
Cost of retail goods sold(1,130,424)(1,152,874)(2,173,245)
Gross profit599,560 655,381 1,241,356
Other income3,624 2,639 7,050
Employee expenses(297,740)(286,678)(573,734)
Depreciation and amortisation expenses
4
(77,495)(73,550)(149,303)
Other operating expenses(140,652)(124,378)(244,255)
Operating profit
4
87,297 173,414 281,114
Unusual items
5
- (79,036)(86,955)
Earnings before interest and tax87,297 94,378 194,159
Net interest expense(18,457)(18,886)(37,458)
Profit before tax68,840 75,492 156,701
Income tax expense(19,652)(21,250)(40,491)
Net profit for the period49,188 54,242 116,210
Attributable to:
Shareholders of the parent50,442 54,965 117,651
Minority interests(1,254)(723)(1,441)
49,188 54,242 116,210
Earnings per share attributable to shareholders of the parent:
Basic earnings per share14.6 cents 15.9 cents 34.1 cents
Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
30 January 31 January 1 August
2022 2021 2021
$ 000 $ 000 $ 000
Net profit for the period49,188 54,242 116,210
Items that may be reclassified subsequently to the Income Statement
Movement in foreign currency translation reserve383 (45)55
Movement in hedge reserves (net of tax)9,174 (640)19,188
Total comprehensive income for the period58,745 53,557 135,453
Attributable to:
Shareholders of the parent
59,999 54,280 136,894
Minority interest(1,254)(723)(1,441)
Total comprehensive income58,745 53,557 135,453
2
Consolidated Statement of Changes in Equity
Foreign
Currency
Share Treasury Hedge Translation Retained Minority Total
(Unaudited)
Note
Capital Stock Reserves Reserve Earnings Interest Equity
For the 26 weeks ended 30 January 2022
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Balance at the beginning of the period365,517 (5,282)6,171 (115)85,871 (2,694)449,468
Profit for the half year- - - - 50,442 (1,254)49,188
Movement in foreign currency translation reserve- - - 383 - - 383
Movement in derivative cash flow hedges- - 12,741 - - - 12,741
Tax related to movement in hedge reserve- - (3,567)- - - (3,567)
Total comprehensive income- - 9,174 383 50,442 (1,254)58,745
Minority put option exercised- - - - (1,316)983 (333)
Dividends paid- - - - (60,698)(126)(60,824)
Treasury stock dividends received- - - - 243 - 243
Balance at the end of the period365,517 (5,282)15,345 268 74,542 (3,091)447,299
Foreign
Currency
Share Treasury Hedge Translation Retained Minority Total
(Unaudited)
Capital Stock Reserves Reserve Earnings Interest Equity
For the 26 weeks ended 31 January 2021
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Balance at the beginning of the period365,517 (5,456)(13,017)(170)30,259 (794)376,339
Profit for the half year- - - - 54,965 (723)54,242
Movement in foreign currency translation reserve- - - (45)- - (45)
Movement in cash flow and monetised hedges- - (889)- - - (889)
Tax related to movement in hedge reserve- - 249 - - - 249
Total comprehensive income- - (640)(45)54,965 (723)53,557
Share rights charged to the income statement- - - - - 72 72
Minority put options exercised- 94 - - (361)267 -
Balance at the end of the period365,517 (5,362)(13,657)(215)84,863 (1,178)429,968
Foreign
Currency
Share Treasury Hedge Translation Retained Minority Total
(Audited)
Capital Stock Reserves Reserve Earnings Interest Equity
For the 52 weeks ended 1 August 2021
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Balance at the beginning of the period365,517 (5,456)(13,017)(170)30,259 (794)376,339
Profit for the year- - - - 117,651 (1,441)116,210
Movement in foreign currency translation reserve- - - 55 - - 55
Movement in derivative cash flow hedges- - 26,651 - - - 26,651
Tax related to movement in hedge reserve- - (7,463)- - - (7,463)
Total comprehensive income- - 19,188 55 117,651 (1,441)135,453
Contributions by and distributions to owners:
Share rights charged to the income statement
- - - - - 93 93
Share rights vested- - - - 1,697 (1,697)-
Minority put options exercised- 174 - - (1,558)1,145 (239)
Dividends paid- - - - (62,432)- (62,432)
Treasury stock dividends received- - - - 254 - 254
Balance at the end of the period365,517 (5,282)6,171 (115)85,871 (2,694)449,468
3
Consolidated Balance Sheet
Unaudited Unaudited Audited
As at As at As at
30 January 31 January 1 August
Note
2022 2021 2021
ASSETS
$ 000 $ 000 $ 000
Current assets
Cash and cash equivalents
16
149,966 183,585 160,526
Trade and other receivables
8
89,586 86,129 79,277
Inventories
7
530,615 497,740 457,151
Derivative financial instruments
17
31,536 77 8,837
Taxation receivable1,053 - -
Total current assets802,756 767,531 705,791
Non-current assets
Derivative financial instruments
17
- - 1,310
Property, plant and equipment
11
199,019 195,839 194,619
Intangible assets
12
189,295 149,745 166,991
Right of use assets
13
699,852 751,380 736,524
Investment in associate
3
4,176 - -
Deferred taxation79,904 97,211 86,120
Total non-current assets1,172,246 1,194,175 1,185,564
Total assets1,975,002 1,961,706 1,891,355
LIABILITIES
Current liabilities
Trade and other payables
9
600,310 501,644 436,579
Derivative financial instruments
17
- 31,742 4,353
Taxation payable- 4,255 10,878
Lease liabilities
14
96,782 96,287 97,812
Provisions
10
55,457 63,029 74,515
Total current liabilities752,549 696,957 624,137
Non-current liabilities
Lease liabilities
14
754,144 813,861 794,379
Provisions
10
21,010 20,920 23,371
Total non-current liabilities775,154 834,781 817,750
Total liabilities1,527,703 1,531,738 1,441,887
Net assets447,299 429,968 449,468
EQUITY
Contributed equity
360,235 360,155 360,235
Reserves15,613 (13,872)6,056
Retained earnings74,542 84,863 85,871
Total equity attributable to shareholders450,390 431,146 452,162
Minority interest(3,091)(1,178)(2,694)
Total equity447,299 429,968 449,468
4
Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
30 January 31 January 1 August
Note
2022 2021 2021
Cash flows from operating activities
$ 000 $ 000 $ 000
Cash received from customers1,727,132 1,808,006 3,425,114
Payments to suppliers and employees(1,518,505)(1,584,811)(3,040,261)
COVID-19 Wage subsidy repayment- (67,550)(67,550)
Income tax paid(28,598)(23,139)(32,132)
Interest paid(18,519)(22,467)(37,910)
Net cash flows from operating activities161,510 110,039 247,261
Cash flows from investing activities
Proceeds from sale of property, plant and equipment- 104 190
Purchase of property, plant, equipment and software(57,667)(39,431)(83,180)
Purchase of associate
3
(4,500)- -
Purchase of minority interest(333)- (239)
Net cash flows from investing activities(62,500)(39,327)(83,229)
Cash flows from financing activities
Early termination of interest rate swaps- (6,622)(9,767)
Lease principal repayments(48,655)(48,573)(99,383)
Treasury stock dividends received 243 - 254
Dividends paid to parent shareholders(61,032)- (62,678)
Dividends paid to minority shareholders(126)- -
Net cash flows from financing activities(109,570)(55,195)(171,574)
Net cash flow(10,560)15,517 (7,542)
Opening cash position160,526 168,068 168,068
Closing cash position149,966 183,585 160,526
Reconciliation of Operating Cash Flows
Profit after tax49,188 54,242 116,210
Non-cash items
Depreciation and amortisation expenses
4
77,495 73,550 149,303
Loss from investment in associate324 - -
Right of use asset impairment
13
- 625 1,582
Share based payment expense- 72 93
COVID-19 landlord rent relief
14
(812)- -
Movement in deferred tax2,651 3,960 8,219
Interest rate hedge derivative write-off- 195 3,340
Movement in monetised derivative hedge reserve- (2,264)-
Total non-cash items79,658 76,138 162,537
Items classified as investing or financing activities
Net loss on disposal of property, plant and equipment
440 99 637
Gain on lease terminations
15
(2,327)(547)(1,237)
Supplementary dividend tax credit334 - 246
Total investing and financing adjustments(1,553)(448)(354)
Changes in assets and liabilities
Trade and other receivables(10,309)(1,866)4,986
Inventories(73,464)(104,130)(63,541)
Trade and other payables151,340 93,737 14,497
Provisions(21,419)(907)13,030
Income tax(11,931)(6,727)(104)
Total changes in assets and liabilities34,217 (19,893)(31,132)
Net cash flows from operating activities161,510 110,039 247,261
5
Notes to the Interim Financial Statements
1. GENERAL INFORMATION
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. SIGNIFICANT TRANSACTIONS AND EVENTS IN THE PERIOD
The interim financial statements of the Group have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand
(GAAP). They comply with New Zealand Equivalent to the International Accounting Standard 34 Interim Financial Reporting(NZIAS 34) and
International Accounting Standard 34 Interim Financial Reporting(IAS 34) and consequently, do not include all the information required for full
financial statements. These Group interim financial statements should be read in conjunction with the annual report for the 52 weeks ended 1
August 2021.
These interim financial statements have been prepared under the historical cost convention except for the revaluation of certain financial
instruments (including derivative instruments). The reporting currency used in the preparation of the interim financial statements is New Zealand
dollars, rounded to the nearest thousands unless otherwise stated. Certain comparative amounts have been reclassified to conform with the current
period presentation.
Accounting standards
The accounting policies that materially affect the measurement of the interim financial statements have been applied on a consistent basis with
those used in the audited financial statements for the 52 weeks ended 1 August 2021.
Non-GAAP financial information
The Group uses operating profit, earnings before tax and interest, unusual items and adjusted net profit to describe financial performance as it
considers these line items provide a better measure of underlying business performance. These non-GAAP measures are not prepared in
accordance with New Zealand Equivalent to International Financial Reporting Standards (NZIFRS) and may not be comparable to similarly titled
amounts reported by other companies. The Group’s policy regarding unusual items and adjusted net profit are detailed in note 5.0.
Critical accounting judgements, estimates and assumptions
The preparation of the interim financial statements requires the Group to make judgements, estimates and assumptions that effect the reported
amounts of assets and liabilities at balance date and the reported amounts of revenues and expenses during the half year. The same significant
judgements, estimates and assumptions that are summarised in the audited financial statements for the 52 weeks ended 1 August 2021 were
applied in the preparation of these interim financial statements.
Seasonality
The Group's revenue and profitability follow a seasonal pattern with higher sales and operating profits typically achieved in the first half of the
financial year as a result of additional sales generated during the Christmas trading period. During the current half year and previous financial year
these seasonal patterns have been unsettled by the impacts of COVID-19 (refer note 3).
Approval of Interim Financial Statements
These consolidated interim financial statements were approved for issue by the Board of Directors on 21 March 2022. Unless as otherwise stated,
the interim financial statements have been reviewed by our Auditors, but are not audited.
The Warehouse Group Limited (the Company) and its subsidiaries (together the Group) trade in the New Zealand retail sector. The Company is a
limited liability company incorporated and domiciled in New Zealand. The Group is registered under the Companies Act 1993 and is an FMC
Reporting Entity under Part 7 of the Financial Markets Conduct Act (FMCA) 2013. The address of its registered office is Level 4, 4 Graham Street,
PO Box 2219, Auckland. The Company is listed on the New Zealand Stock Exchange (NZX).
The following significant transactions and events affected the financial performance and financial position of the Group for the half year ended 30
January 2022:
Group structure
TheMarket
The Group increased its shareholding in TheMarket.com from 88.5% to 91%, when a put option was exercised in accordance with TheMarket.com
share rights plan. Details of the share rights plan can be found in last year’s annual report. The Group also amalgamated 1-day Limited with
TheMarket.com Limited effective from the commencement of the current half year period.
Investment in associate
In August 2021 the Group invested $4.5 million, to acquire a 26% interest in ZOOM Health Limited (ZOOM). ZOOM is a health technology company
and shareholder in ZOOM Care Limited, an online pharmacy that delivers prescription medicine to patients. During the half year the Group
recognised $0.3 million as a proportionate share of ZOOM’s trading losses, which reduced the carrying value of the investment to $4.2 million.
Other changes
The Group’s discontinued Diners Club (NZ) business which ceased operating in April 2020 was placed into a formal solvent liquidation during the
half year and removed from the Companies Office register. There were no other changes to the Group’s company structure.
Impact of COVID-19
The half year was impacted by the outbreak of the COVID-19 Delta variant which resulted in the Group's store network being closed to customers
for at least two weeks from 17 August 2021 to limit the spread of COVID-19. The Government Alert Level 4 lockdown lasted for two weeks
throughout New Zealand (excluding Auckland and Northland) before restrictions were eased to Level 3 on 31 August 2021, which allowed
customers to purchase products from stores using ‘click and collect’ before a further easing of restrictions to Alert Level 2 on 7 September 2021. At
Alert Level 2 the Group's stores could open subject to physical distancing, mask wearing and record keeping requirements.
Northland moved to Alert Level 3 two days after the rest of New Zealand on 2 September 2021, while Auckland was held at Level 4 for a total of five
weeks, and then at Alert Level 3 for a further seven weeks until 10 November 2021 before the alert levels were eased to Alert Level 3 step 2 and the
Group’s Auckland stores could reopen to customers. There were also intermittent periods when parts of the Waikato and Northland returned to
Level 3 restrictions during this time. The Group’s stores were closed to customers for 10,502 days (23%) of the 45,666 potential store trading days
during the half year.
The impact on Group sales of the lockdowns was significant, with only two weeks of the first quarter not impacted by the COVID-19 lockdown
restrictions, with sales down by $107.8 million (14.6%) compared to the same quarter last year. There was a partial recovery of the lost sales when
all stores reopened in the second quarter with sales up 2.8% in the second quarter compared to the same quarter last year. However the sales
rebound was subdued compared to the sales rebound the Group experienced following previous lockdowns, with sales for the half year down $78.3
million (4.3%) compared to last year.
6
Notes to the Interim Financial Statements
3. SIGNIFICANT TRANSACTIONS AND EVENTS IN THE PERIOD - CONTINUED
Impact of COVID-19
Gross profit margin for half year was 34.7%, or 150 basis points lower than the previous corresponding period. Higher freight costs due to supply
chain disruptions and increased online sales, up 68% compared to last year (represents 19% of total sales) were significant factors contributing to
the margin reduction. Increased online sales reduced gross profit margin due to a lower margin product mix and additional freight costs associated
with the online sales. The timing of the lockdowns also meant discounting was required during the first quarter to clear a build-up of winter seasonal
stock accumulated during the lockdown. The combination of lower sales and the lower gross profit margin resulted in the half year gross profit of
$599.6 million, being $55.8 million lower than the previous corresponding period.
Employee and other operating expenses were impacted by additional COVID-19 activity connected with online fulfilment, additional labour shifts due
to close contact stand downs, distribution inefficiencies to alleviate pressure on the Auckland distribution centre, additional health and safety related
spend across the network (including rapid antigen testing and deploying additional staff as store door greeters). Throughout the lockdowns the
Group continued to pay its staff in full for rostered hours.
Despite the impact on half year profit with the Group's adjusted after tax profit down $63.0 million (56.7%) compared to last year, the balance sheet
and operating cash flow remain solid. However there continues to be uncertainty due to COVID-19 and the latest emergence of the new Omicron
COVID-19 variant. These uncertainties are factored into the key estimates and judgements that underly the impairment assessments of asset
carrying values at the half year end, of which the inventory impairment review is probably the most significant of these key judgement areas.
Inventory
The ongoing disruption to worldwide supply chains through the half year made managing stock flow challenging causing some product shortages. In
response to the disruptions the Group increased inventory levels, with inventory up $32.9 million to $530.6 million compared to the last half year to
improve availability of key continuity and seasonal product lines. The timing of Chinese New Year falling just after balance date and two weeks
earlier than the last year also contributed to the higher inventory levels, advancing the timing of seasonal inventory purchases and is reflected in
higher ‘goods in transit’ which are $27.6 million higher than last year. The recent build-up of inventory levels heading into the next half year,
improves the inventory average age profile and puts the Group in a better position to cope with ongoing supply chain disruptions.
The Group’s inventory impairment provisions (refer note 7) represent 4.3% of total inventory compared to 5.3% at July 2021 and were calculated
after considering the trading outlook and the quality and age of inventory held at balance date.
Liquidity
The Group adopted a new liquidity policy last year which sets liquidity buffer parameters (refer note 16) to provide balance sheet resilience against
adverse events. During this period of uncertainty caused by COVID-19 the Group continuously monitors trading forecasts and projected cashflows
to assess policy compliance.
Cloud Computing Arrangements
In March 2021, the International Financial Reporting Interpretation Committee (IFRIC) issued an agenda decision clarifying the accounting treatment
for software implementation costs in cloud computing arrangements. IFRIC concluded that costs incurred in configuring or customising software in
cloud computing arrangements can be recognised as intangible assets only if the activities create an intangible asset that the Group controls. Costs
that do not result in intangible assets are expensed as incurred, unless they are paid to the suppliers of the cloud-based software to significantly
customise the cloud-based software for the Group, in which case the costs paid upfront are recorded as prepayments and amortised over the
expected terms of the cloud computing arrangements.
The Group has capitalised costs incurred in configuring and customising supplier’s software in cloud computing arrangements as
intangible software
assets, as the Group considered that it would benefit from the costs to implement the cloud-based software over the expected terms of the cloud
computing arrangements.
The Group has been reviewing its more than 200 different cloud-based software arrangements, which have an approximate combined carrying
value at balance date of between $65 million to $75 million to determine the impact of the IFRIC decision. This is a complex area and the process of
evaluating and reassessing the nature of the software costs incurred and understanding the Group's contractual rights in relation to customisation
and configuration expenditure is taking a considerable amount of time. At the time of finalising the 2022 half-year financial statements the review
process is still continuing and it is anticipated that the Group not have a clear understanding of the situation until the end of its financial year. We
have continued to capitalise costs that have occurred since the start of the current financial year in line with the Group’s previously approved
accounting policies.
If the Group is required to revise its accounting policy to comply with the IFRIC decision, the change will require a retrospective restatement of prior
period financial statements. Whilst not impacting actual cash flows the change could reduce intangible assets and associated amortisation, increase
operating expenses, and reclassify the relevant spend from an investing to an operating cash flow. The change may also result in the recognition of
prepayments or an adjustment to opening retained earnings.
7
Notes to the Interim Financial Statements - continued
4. SEGMENT INFORMATION
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
30 January 31 January 1 Au
gust 30 January 31 January 1 August
Note
2022 2021 2021 2022 2021 2021
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
The Warehouse895,413 967,300 1,804,861 43,960 122,616 187,621
Warehouse Stationery 122,047 136,578 274,646 9,680 17,154 34,325
Warehouse segment1,017,460 1,103,878 2,079,507 53,640 139,770 221,946
Noel Leeming 582,746 593,176 1,128,184 29,787 33,069 64,879
Torpedo797,462 84,855 158,706 2,831 5,221 3,287
TheMarket33,037 29,292 54,455 (11,985)(9,237)(20,704)
Other Group operations3,586 3,977 7,141 (8,734)(15,799)(28,803)
Inter-segment eliminations(4,307)(6,923)(13,392)
Group1,729,984 1,808,255 3,414,601 65,539 153,024 240,605
Adjustment for NZIFRS 16 (Leases)
15
21,758 20,390 40,509
Operating profit87,297 173,414 281,114
Unusual items
5
- (79,036)(86,955)
Earnings before interest and tax87,297 94,378 194,159
Operating margin
The Warehouse (%)
4.9 12.7 10.4
Warehouse Stationery (%)7.9 12.6 12.5
Noel Leeming (%)5.1 5.6 5.8
Torpedo7 (%)2.9 6.2 2.1
Total Retail Group (%)3.8 8.5 7.0
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
30 January 31 January 1 Au
gust 30 January 31 January 1 August
Note
2022 2021 2021 2022 2021 2021
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Warehouse segment56,464 53,488 108,270 48,787 30,033 64,703
Noel Leeming 13,471 13,186 26,692 2,239 6,317 11,812
Torpedo74,440 4,494 9,097 2,768 891 2,722
TheMarket2,198 1,500 3,448 2,072 2,638 5,462
Other Group operations922 882 1,796 1,512 109 256
Total77,495 73,550 149,303 57,378 39,988 84,955
(Note:11) (Note:11) (Note:11)
Comprising
Property, plant, equipment and software
11
30,294 26,900 55,211
Right of use assets
13
47,201 46,650 94,092
Total77,495 73,550 149,303
Operating performance
Capital expenditure and depreciation
REVENUEOPERATING PROFIT
DEPRECIATION & AMORTISATIONCAPITAL EXPENDITURE
Operating segments
The Group has four operating segments trading in the New Zealand retail sector and an online marketplace (includes 1-day). These segments form
the basis of internal reporting used by senior management and the Board of Directors to monitor and assess performance and assist with strategy
decisions. The Group has disclosed its segment operating profit performance that excludes the impacts of NZIFRS 16 Leases, which is consistent
with internal reporting and the way the Group monitors financial performance.
Each of the four main retail segments represent a distinct retail brand that operate throughout New Zealand. Customers can purchase product from
the retail chains either online or through the Group’s physical retail store network. At period end the Group’s physical store network consists of 90 The
Warehouse stores, 70 Warehouse Stationery stores, 71 Noel Leeming stores and 22 Torpedo7 stores. The Warehouse predominantly sells general
merchandise and apparel, Noel Leeming sells technology and appliance products, Torpedo7 sells outdoor and sporting equipment and Warehouse
Stationery sells stationery products.
Other Group operations include a property company, a chocolate factory and the residual cost of unallocated support office functions.
8
Notes to the Interim Financial Statements - continued
4. SEGMENT INFORMATION - (Continued)
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
As at As at As at As at As at As at
30 January 31 January 1 Au
gust 30 January 31 January 1 August
Note
2022 2021 2021 2022 2021 2021
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
Warehouse segment560,009 504,396 477,210 433,579 384,163 353,595
Noel Leeming 206,973 203,682 189,241 209,056 176,272 149,077
Torpedo759,799 43,115 52,281 23,208 16,685 20,761
TheMarket21,821 21,099 21,288 9,627 7,605 9,009
Other Group operations91,133 84,205 85,062 1,307 868 2,023
Operating assets / liabilities939,735 856,497 825,082 676,777 585,593 534,465
Unallocated assets / liabilities
Cash and borrowings
16
149,966 183,585 160,526 - - -
Derivative financial instruments
17
31,536 77 10,147 - 31,742 4,353
Right of use assets / Lease liabilities
13, 14
699,852 751,380 736,524 850,926 910,148 892,191
Intangible goodwill and brands72,956 72,956 72,956 - - -
Taxation80,957 97,211 86,120 - 4,255 10,878
Total1,975,002 1,961,706 1,891,355 1,527,703 1,531,738 1,441,887
5. ADJUSTED NET PROFIT
(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended
30 January 31 January 1 Au
gust
Note
2022 2021 2021
$ 000 $ 000 $ 000
Adjusted net profit48,034 111,013 175,515
Less: Unusual items
Restructuring costs - Agile
- (11,291)(16,065)
Ineffective hedge derivatives- (195)(3,340)
Repayment of COVID-19 wage subsidy- (67,550)(67,550)
Unusual items before taxation- (79,036)(86,955)
Adjustment for NZIFRS 16 (Leases)
15
3,345 1,191 2,012
Income tax relating to above items(937)21,797 23,784
Income tax relating to prior year building disposals- - 3,295
Unusual items after taxation2,408 (56,048)(57,864)
Net profit from continuing operations attributable to shareholders of the parent50,442 54,965 117,651
Adjusted net profit reconciliation
Balance sheet information
TOTAL ASSETSTOTAL LIABILITIES
Certain transactions can make the comparison of profits between years difficult. The Group uses adjusted net profit as a key indicator of
performance and considers it a better measure of underlying business performance. Adjusted net profit makes allowance for the after tax effect of
unusual items which are not directly connected with the Group’s normal trading activities. The Group defines unusual items as any gains or losses
from property disposals, goodwill and brand impairment, costs relating to business acquisitions or disposals, ineffective hedge derivatives and costs
connected with restructuring the Group. Following the adoption of NZIFRS 16 the non-cash impact relating to the lease accounting standard are
also excluded from adjusted net profit.
The Group did not classify any items as unusual during the half year.
2021 COVID-19 Wage subsidy
In December 2020 the Group voluntarily repaid the Government COVID-19 wage subsidy it received in March 2020. The Group classified both the
receipt and offsetting repayment of the COVID-19 wage subsidy which spanned two different financial years as unusual items.
2021 Restructuring costs
The restructuring costs relate to professional fees and redundancy costs incurred as part of the Group’s transition to an Agile way of working
completed last year.
9
Notes to the Interim Financial Statements - continued
6. DIVIDENDS
(Unaudited)(Unaudited)(Audited)(Unaudited)(Unaudited)(Audited)
26 Weeks 26 Weeks 52 Weeks 26 Weeks 26 Weeks 52 Weeks
Ended Ended Ended Ended Ended Ended
30 January 31 January 1 Au
gust 30 January 31 January 1 August
2022 2021 2021 2022 2021 2021
$ 000 $ 000 $ 000
Prior year final dividend17.5 - - 60,698 - -
Special dividend- - 5.0 - - 17,342
Interim dividend- - 13.0 - - 45,090
Total dividends paid17.5 - 18.0 60,698 - 62,432
7. INVENTORIES
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
$ 000 $ 000 $ 000
Finished goods449,569 452,249 413,352
Inventory provisions(19,185)(27,162)(21,966)
Retail stock430,384 425,087 391,386
Goods in transit from overseas100,231 72,653 65,765
Inventory530,615 497,740 457,151
8. TRADE AND OTHER RECEIVABLES
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
$ 000 $ 000 $ 000
Trade receivables39,313 43,215 36,193
Prepayments15,453 13,122 12,528
Rebate accruals and other debtors34,820 29,792 30,556
Total trade and other receivables89,586 86,129 79,277
9. TRADE AND OTHER PAYABLES
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
$ 000 $ 000 $ 000
Local trade creditors and accruals353,832 307,257 266,486
Foreign currency trade creditors113,332 122,514 93,524
Goods in transit creditors76,195 24,077 17,883
Capital expenditure creditors2,728 1,807 3,018
Goods and services tax7,884 5,365 10,155
Reward schemes, lay-bys, Christmas club deposits and gift vouchers23,353 20,798 22,036
Payroll accruals22,986 19,826 23,477
Total trade and other payables600,310 501,644 436,579
Trade and other receivables
Trade and other payables
Inventories
CENTS PER SHAREDIVIDENDS PAID
Dividends paid
Subsequent events
The Group's dividend policy, after it was amended last year, is to distribute at least 70% of the Group's full year adjusted net profit, at the discretion of
the Board and subject to trading performance, market conditions and liquidity requirements. In compliance with this policy the Board declared a fully
imputed interim dividend of 10.0 cents per ordinary share on 21 March 2022 to be paid on 26 April 2022 to all shareholders on the Group's share
register at the close of business on 6 April 2022. Based on the Group's dividend policy the interim dividend represents a payout ratio of 72%.
10
Notes to the Interim Financial Statements - continued
10. PROVISIONS
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
$ 000 $ 000 $ 000
Current liabilities55,457 63,029 74,515
Non-current liabilities21,010 20,920 23,371
Total provisions76,467 83,949 97,886
Provisions consist of:
Employee entitlements62,305 69,561 83,270
Make good provision8,704 8,718 9,175
Sales returns provision5,458 5,670 5,441
Total provisions76,467 83,949 97,886
11. PROPERTY, PLANT, EQUIPMENT AND COMPUTER SOFTWARE
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
Note
2022 2021 2021
$ 000 $ 000 $ 000
Property, plant and equipment199,019 195,839 194,619
Computer software
12
116,339 76,789 94,035
Carrying amount315,358 272,628 288,654
Movement in property, plant, equipment and software
Carrying amount at the beginning of the period
288,654 259,741 259,741
Capital expenditure
4
57,378 39,988 84,955
Depreciation and amortisation
4
(30,294)(26,900)(55,211)
Disposals(380)(201)(831)
Carrying amount at the end of the period315,358 272,628 288,654
12. INTANGIBLE ASSETS
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
Note
2022 2021 2021
$ 000 $ 000 $ 000
Computer software
11
116,339 76,789 94,035
Brands15,500 15,500 15,500
Goodwill57,456 57,456 57,456
Net book value189,295 149,745 166,991
13. RIGHT OF USE ASSETS
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
Note
2022 2021 2021
$ 000 $ 000 $ 000
Movement in right of use assets
Carrying amount at the beginning of the period736,524 774,175 774,175
Additions
14
11,621 17,285 55,494
Depreciation
4
(47,201)(46,650)(94,092)
Reassessment of lease terms
14
(1,075)9,182 5,271
Impairments
4
- (625)(1,582)
Lease surrenders and terminations(17)(1,987)(2,742)
Carrying amount at the end of the period699,852 751,380 736,524
Intangible assets
Property, plant, equipment and computer software
Right of use assets
Provisions
The Group performs a detailed impairment assessment of intangible assets prior to the end of each financial year and at each interim reporting date
considers if there are any indicators of impairment which could have a bearing on the impairment assessments. The Group’s interim review did not
identify any significant indicators of impairment in respect of the cash generating units connected with the Group’s material intangible assets.
11
Notes to the Interim Financial Statements - continued
14. LEASE LIABILITIES
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
Note
2022 2021 2021
$ 000 $ 000 $ 000
Movement in lease liabilities
Carrying amount at the beginning of the period892,191 934,788 934,788
Additions
13
11,621 17,285 55,494
Interest for the period
15
18,413 19,199 38,497
Reassessment of lease terms
13
(1,075)9,182 5,271
COVID-19 landlord rent relief(812)- -
Lease repayments(67,068)(67,772)(137,880)
Lease surrenders and terminations(2,344)(2,534)(3,979)
Balance at the end of the period850,926 910,148 892,191
Lease liability maturity analysis
Within one year96,782 96,287 97,812
One to two years90,343 93,377 93,118
Two to five years238,966 247,883 254,649
Beyond five years424,835 472,601 446,612
Total lease liabilities850,926 910,148 892,191
Current liabilities96,782 96,287 97,812
Non-current liabilities754,144 813,861 794,379
Total lease liabilities850,926 910,148 892,191
15. ADJUSTMENT FOR NZIFRS 16 (LEASES)
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
Note
2022 2021 2021
$ 000 $ 000 $ 000
Pre NZIFRS 16 Rent66,632 67,118 134,946
Right of use asset amortisation
13
(47,201)(46,650)(94,092)
Right of use asset impairment- (625)(1,582)
Gain on lease terminations2,327 547 1,237
Impact on operating profit
4
21,758 20,390 40,509
Lease liability interest
14
(18,413)(19,199)(38,497)
Impact on net profit before tax
5
3,345 1,191 2,012
16. BORROWINGS
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
$ 000 $ 000 $ 000
Cash on hand and at bank149,966 183,585 160,526
Committed bank credit facilities at balance date are:
Committed and unused bank debt facilities330,000 330,000 330,000
Liquidity buffer479,966 513,585 490,526
Net cash
Lease liabilities
Adjustment for NZIFRS 16 (Leases)
The Group adopted a new liquidity policy last year to provide balance sheet resilience year in response to the COVID-19 pandemic. The new policy,
which remains unchanged is to maintain a liquidity buffer of between $350 million to $450 million. This policy permits the liquidity buffer to exceed the
policy range where it is caused by temporary cash flow fluctuations associated with the timing of creditor payments.
The Group complied with the debt ratios and restrictive covenants stipulated in the Group’s negative pledge arrangement with its banks throughout
the half year. Details regarding these covenants can be found in the 2021 Annual Report.
Sustainability-Linked Loans
During the half year the Group restructured $140 million of its committed bank credit facilities to be Sustainability-Linked Loans (SLLs). The facility fee
pricing for the SLLs are linked to the achievement of mutually agreed sustainability targets that meet the requirements of the Loan Market
Association’s Sustainability Linked Loan Principles (2021). The five sustainability targets are as follows:
1. 50% of brands that are directly owned by The Warehouse and Warehouse Stationery must have sustainable packaging that is compostable,
or recyclable solely at New Zealand kerbside or in store by July 2025.
2. All Tier 2 Sources for at least 50% of Tier 1 Suppliers will comply with The Warehouse Group’s Labour & Environmental Policy by July 2025.
3. Reduce absolute Scope 1 and Scope 2 greenhouse gas emissions by at least 5% for each year of the loan against the July 2020 Baseline.
4. Gender Pay Equity: Achieve 100% pay equity across its overall workforce by July 2025.
5. Gender Representation: The board, executive team, or those who directly report to the executive team, are 50% women by July 2025.
The targets for SLLs will be remeasured and independently audited at the end of each of the next four financial years to determine if the targets have
been achieved. The facility pricing is then reduced to a maximum of 8 basis points if all the sustainability targets are achieved and increased by the
same if the targets are not met.
12
Notes to the Interim Financial Statements - continued
17. DERIVATIVE FINANCIAL INSTRUMENTS
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
$ 000 $ 000 $ 000
Foreign exchange contracts
Current assets31,536 77 8,837
Non-current assets- - 1,310
Current liabilities- (31,742)(4,353)
Total derivative financial instruments31,536 (31,665)5,794
Classified as:
Cash flow hedges21,313 (15,824)8,572
Fair value hedges10,223 (15,841)(2,778)
31,536 (31,665)5,794
US Dollar forward contracts
Notional amount (NZ$000) 0 to 12 months375,193 378,767 382,508
Notional amount (NZ$000) 12 to 18 months- - 27,578
Average contract rate ($)0.7063 0.6589 0.7049
Spot rate used to determine fair value ($)0.6538 0.7191 0.6966
Forecast next twelve month USD hedge level (percentage)69.8 71.7 70.9
18. COMMITMENTS
(Unaudited)(Unaudited)(Audited)
As at As at As at
30 January 31 January 1 Au
gust
2022 2021 2021
Capital commitments
$ 000 $ 000 $ 000
Within one year23,898 11,228 28,759
19. RELATED PARTIES
20. CONTINGENT LIABILITIES
Commitments
Derivative financial instruments
Capital expenditure contracted for at balance date but not recognised as liabilities is
set out below:
The Group has no material contingent liabilities other than those arising in the normal course of business, being primarily letters of credit issued to
secure future purchasing requirements and store lease commitments.
Except for directors' fees, key executive remuneration and dividends paid by the Group to its directors, there have been no other related party
transactions during the period.
Fair value
The Group’s derivatives are not traded in an active market which means quoted prices are not available to determine the fair value. To
determine the fair value the Group uses valuation techniques which rely on observable market data. The fair value of forward exchange
contracts are determined using the forward exchange market rates at the balance date. For accounting purposes (NZIFRS 13) these
valuations are deemed to be Level 2 fair value measurements as they are not derived from a quoted price in an active market but rather, a
valuation technique that relies on other observable market data.
The Group continues to manage its foreign exchange risks in accordance with the policies and parameters detailed in the 2021 Annual Report.
The Group’s foreign exchange contracts at balance date hedge forecast inventory purchases priced in US dollars for the next 12 months, although
the Group’s treasury policy does permit foreign exchange hedging beyond 12 months and up to 18 months when certain criteria are met. The
following table lists the key inputs used to determine the fair value of the Group's foreign exchange contracts and hedge levels at balance date.
13
---
Independent auditor’s review report
To the shareholders of The Warehouse Group Limited
Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of The Warehouse Group Limited (the Company)
and itssubsidiaries(the Group), which comprise theconsolidated balance sheet as at 30 January
2022, and the consolidated income statement, consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the
period ended on that date, and significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial statements of the Group do not present fairly, in all material respects,
the financial position of the Group as at 30 January 2022, and its financial performance and cash flows
for the 26 weeks period then ended, in accordance with International Accounting Standard 34Interim
Financial Reporting(IAS 34) and New Zealand Equivalentto International Accounting Standard 34
Interim Financial Reporting(NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements
2410 (Revised)Review of Financial Statements Performedby the Independent Auditor of the Entity
(NZ SRE 2410 (Revised)). Our responsibility is further described in theAuditor’s responsibility for the
review of the interim financial statementssectionof our report.
We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical
responsibilities in accordance with these ethical requirements. In addition to our role as auditor, our
firm carries out other services for the Group in the areas of executive remuneration and long-term
incentive analysis, provision of the 2021 executive reward report, access to general training materials,
agreed upon procedures at the Annual Shareholders’ Meeting and over the calculations of the
Negative Pledge Agreement and a tax audit for an overseas subsidiary. In addition, certain partners
and employees of our firm may deal with the Group on normal terms within the ordinary course of
trading activities of the Group. These relationships and other services have not impaired our
independence.
Directors’ responsibility for the interim financial statements
The Directors of the Company are responsible on behalf of the Companyfor the preparation and fair
presentation of these interim financial statements in accordance with IAS 34 and NZ IAS 34 and for
such internal control as the Directors determine is necessary to enable the preparation and fair
presentation of interim financial statements that are free from material misstatement, whether due to
fraud or error.
Auditor’s responsibility for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review.
NZ SRE 2410 (Revised) requires us to conclude whether anything has come to our attention that
causes us to believe that the interim financial statements, taken as a whole, are not prepared in all
material respects, in accordance with IAS 34 and NZ IAS 34.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000,www.pwc.co.nz
The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing and International Standards on
Auditing (New Zealand) and consequently does not enable us to obtain assurance that we might
identify in an audit. Accordingly, we do not express an audit opinion on these interim financial
statements.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our review work has been
undertaken so that we might state to the Company’s shareholders those matters which we are
required to state to them in our review report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the shareholders, as a body,
for our review procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Lisa
Crooke.
For and on behalf of:
Chartered AccountantsAuckland
21 March 2022
PwC2
---
Name of issuer THE WAREHOUSE GROUP LIMITED
Financial product description Ordinary Shares (346,843,120)
NZX ticker code WHS
ISIN NZWHSE0001S6
Type of distribution Full Year Quarterly
(please mark with an X in the relevant box/es) Half Year
X
Special
DRP Applies Not Applicable
Record date 06 April 2022
Ex-Date (one business day before the record date) 05 April 2022
Payment date 26 April 2022
Total monies associated with the distribution $34,684,312
Source of distribution Operating cashflows
Currency New Zealand dollars
Gross distribution $0.13888889
Gross taxable amount $0.13888889
Total cash distribution $0.10000000
Excluded amount $0.00000000
Supplementary distribution amount $0.01764706
Is this distribution imputed? Fully imputed
28%
$0.03888889
$0.00694444
Date of release through MAP
The Warehouse Group Limited
Corporate Action Notice (for a Distribution)
Name of person authorised to
make this announcement
Jonathan Oram (Group Chief Financial Officer)
Contact phone number 09 217 7651
Imputation tax credits per financial product
Section 5: Authority for this announcement
Contact person for this announcement Jonathan Oram (Group Chief Financial Officer)
Contact email address Jonathan.Oram@thewarehouse.co.nz
22 March 2022
Section 1: Issuer Information
Section 2: Distribution amounts per financial product
Section 3: Imputation credits and resident withholding tax
Resident withholding tax amount per financial product
If fully or partially imputed, please state imputation
rate as % applied
Section 4: Distribution re-investment plan (if applicable)
Not Applicable
---
Quarterly Sales
Reporting Period 26 weeks to 30 January 2022
Previous Reporting Period 26 weeks to 31 January 2021
Previous Reporting Period (2020) 26 weeks to 26 January 2020
Quarterly Retail Sales information:
SalesSalesSales
(2 August 2021 to 31 October 2021)
202220212020
($ Million)($ Million)($ Million)
The Warehouse 298.2 379.5 368.9 - 21.4 % - 19.2 %
Warehouse Stationery48.2 61.8 63.0 - 22.0 % - 23.5 %
Noel Leeming238.7 250.8 225.0 - 4.8 % + 6.1 %
Torpedo734.2 33.8 23.8 + 1.2 % + 43.7 %
Total Group
1
630.7 738.5 694.8 - 14.6 % - 9.2 %
SalesSalesSales
(1 November 2021 to 30 January 2022)
202220212020
($ Million)($ Million)($ Million)
The Warehouse 597.2 587.8 569.9 + 1.6 % + 4.8 %
Warehouse Stationery73.8 74.8 70.8 - 1.3 % + 4.2 %
Noel Leeming344.0 342.4 287.8 + 0.5 % + 19.5 %
Torpedo763.3 51.1 42.0 + 23.9 % + 50.7 %
Total Group
1
1,099.3 1,069.8 988.6 + 2.8 % + 11.2 %
SalesSalesSales
(2 August 2021 to 30 January 2022)
202220212020
($ Million)($ Million)($ Million)
The Warehouse 895.4 967.3 938.8 - 7.4 % - 4.6 %
Warehouse Stationery122.0 136.6 133.8 - 10.6 % - 8.8 %
Noel Leeming582.7 593.2 512.8 - 1.8 % + 13.6 %
Torpedo797.5 84.9 65.8 + 14.9 % + 48.2 %
Total Group
1
1,730.0 1,808.3 1,683.4 - 4.3 % + 2.8 %
Store Numbers
20222021202220212022202120222021
Start Quarter 2909071 73 70 71 21 20
End Quarter 2909071 73 70 71 22 20
20222021202220212022202120222021
Start Quarter 2486,051 487,884 85,541 77,795 62,867 65,849 27,030 27,030
End Quarter 2486,051 487,884 85,541 77,795 62,867 65,849 28,319 27,030
- - - -
- - - -
- - - -
1 - - -
Note:
First quarter sales
Change in
sales
vs 2021
Change in
sales
vs 2020
Year to date sales
Change in
sales
vs 2021
Change in
sales
vs 2020
Second quarter sales
Change in
sales
vs 2021
Change in
sales
vs 2020
Noel LeemingWarehouse StationeryTorpedo7The Warehouse
Store
closure
Extension/
reduction
New
store
Replacement
store
The Warehouse
Warehouse Stationery
Warehouse StationeryTorpedo7Noel Leeming
Store footprint
(Square Metres)
1) Total Group sales includes TheMarket segment, eliminations and other Group operations in addition to the 4 main retail operations detailed above.
The Warehouse Group Limited
Supplementary Information
The Warehouse
Noel Leeming
Torpedo7
Store changes during the quarter
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.
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