Nick Scali reports impressive full-year profit surge of 26.1% amidst improved delivery and expansion

Company News

by Peter Milios

Furniture retail giant Nick Scali (ASX:NCK) has exceeded market expectations by achieving a remarkable 26.1% increase in net profit for the full fiscal year, reaching a total of $101.1 million. This success has been attributed to the company's enhanced delivery services to customers and the strategic inclusion of the Plush-Think Sofas business, both of which have contributed significantly to its overall performance.

The robust surge in profits stands in stark contrast to earlier market projections, which had estimated a profit in the vicinity of $96 million. Nick Scali's revenue for the fiscal year 2023 has also seen a substantial upswing, rising by 15.1% to hit an impressive $507.7 million.

In a move to reward its shareholders, the national furniture retailer has declared a consistent final dividend of 35 cents per share. This brings the cumulative dividends for the year to an increased rate of 75 cents, marking a commendable 7.1% rise from the payouts recorded in the previous year of 2022.

Whilst Nick Scali acknowledged the volatility experienced in trading during the latter half of the fiscal year, the company noted a strong finish to 2023 in the month of June. Group written sales orders for this period reached a notable $51.5 million, signifying a robust 4.5% growth compared to the figures from June 2022. However, in July 2023, the orders totalled $39.7 million, experiencing a decline of 8.1%. This decrease is attributed to the strong performance in July 2022, creating a higher comparative base for this year's statistics.

The exceptional financial results indicate that Nick Scali's strategic efforts in refining customer experience, expanding its product portfolio, and maintaining consistent dividends have collectively contributed to its prosperous performance amidst a challenging market environment.

Peter Milios

Peter Milios is a recent graduate from the University of Technology - majoring in Finance and Accounting. Peter is currently working under equity research analyst Di Brookman for Corporate Connect Research.

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