Solomon Lew’s Premier Investments has rewarded shareholders with a special interim dividend, taking total dividends for the first half to 70 cents per share after posting record sales and earnings.
Premier reported a statutory net after tax profit of $174.3 million, up 6.5% on the first half of 2021-22.
The company revealed an interim fully franked ordinary dividend of 54 cents per share, and special fully franked dividend of 16 cps, making a total of 70 cps, up 52.2% on a year ago.
Premier Retail which owns brands including Peter Alexander and Smiggle, said sales rose 17.6% to $905.2 million in the 26 weeks to January 28. That was a slowdown in the second part of the half – sales had been ahead more than 24% in the early weeks according to the update at the AGM late last year.
The company said that global sales had further slowed from the strong performance in the first half but were still up 7.7% in the first six weeks of the second half.
Premier Retail said the solid start to the second half “and its clean inventory position has given the Group confidence that it is well positioned to maximise sales through the trading period ahead.”
Online sales made up 18.9% of Premier Retail’s turnover for the half which was down 12.5% from a year ago to $170.9 million as shoppers flocked back to stores and malls with the ending of Covid lockdowns here and in some key offshore markets.
Earnings before interest and tax (a key retailing profitability metric) rose 12.2% to $220.4 million in the latest half year.
Premier said its investment in Breville Group Limited had a market value of $809.9 million (balance sheet value of $327.1 million) and investment in Myer Holdings Limited had a market value of $179.3 million (as at January 28). Premier has lifted its Myer stake to 26.8% post balance date.
First-half cash was solid at $470.4 million at the end of the period.
Chairman Solomon Lew said in Monday’s results announcement:
“Our teams have executed strongly to support the delivery of record results in an uncertain economic environment. We are delighted to continue our track record of strong returns for our shareholders, approving record interim ordinary and special dividends for the half of 70 cents per share.
“Over the past three years and including the 1H23 dividends, Premier shareholders have been rewarded with a total of half a billion dollars in fully franked dividends.
“Premier Retail EBIT is up 74.8% on 1H20. Today, Premier Retail is uniquely positioned to continue to deliver with our brands identifying key growth paths for the future, whilst leveraging synergies within the Group’s global operations.”
Premier shares fell 2.5% to $24.70.
