Super Retail Group
(ASX:SUL) has announced a special dividend of 25 cents per share alongside a final dividend of 44 cents, following the company's report of increased sales and earnings for the year ending on July 1.
SUL experienced a 7% surge in sales, reaching $3.8 billion, with a 9% increase when adjusted to account for the additional week in the 2021-22 period.
Comparable store sales within the group, or like-for-like sales, displayed a robust 8% growth throughout the year; however, there has been a sharp decline in the first weeks of the 2024 financial year.
The net profit saw a 9% rise to $263 million, or a 12% increase to $274 million on a 'normalised' basis.
The company decided to distribute a special dividend of 25 cents per share, along with the 44 cents per share final dividend. Combined with the 34 cents per share interim dividend, this brings the total dividends for the year to 103 cents per share. This marks a notable increase from the 70 cents per share distributed in the 2021-22 period.
Online sales for the group amounted to $445 million. The proportion of online sales to total sales decreased from 17% in 2021-22 to 12%, as customers reverted to pre-pandemic shopping habits and resumed in-store purchases. Among online sales, Click & Collect accounted for 48%.
CEO Anthony Heraghty expressed satisfaction with SUL's robust financial results, showcasing another year of record-breaking sales and enhanced profitability. He attributed revenue growth to ongoing investments in the company's store network, including new store openings, refurbishments, and the introduction of new formats. The addition of over a million active club members to the customer loyalty base also contributed to the Group's financial performance.
Currently, the Group boasts more than ten million active club members across its loyalty programs, representing a substantial 73% of total Group sales.
Despite the challenges posed by increased interest rates and living expenses impacting consumer spending, the Group demonstrated resilience in its second-half trading performance. With all four core brands reporting positive same-store sales growth, the company achieved a 6% like-for-like sales growth in the second half.
Looking ahead to 2024, the company reported higher sales in July and early August. However, the performance was varied, with group headline sales increasing by 2%, but remaining steady on a like-for-like basis. Notably, Supercheap Auto and BCF exhibited positive sales growth despite economic challenges.
The CEO outlined the company's strategy for the upcoming fiscal year, which includes opening 24 new stores, continuing the expansion of the BCF Superstore and rebel rCX store formats, and transitioning more Supercheap Auto stores to the next generation format. Additionally, leveraging the customer loyalty base remains a significant opportunity, with plans to relaunch the Rebel loyalty program prior to the Christmas season.
