Premier Investments Limited - Preliminary Final Report for FY24
PMV (PMV) Share Update September 2024 Tuesday 24th
Premier Investments Reports Decline in Revenue and Profit for FY24
Premier Investments Limited (ASX: PMV) has released its preliminary final report for the 52 weeks ending 27 July 2024, showing a decline in both revenue and profit compared to the previous year.
Instant Summary:
- Revenue from ordinary activities decreased by 2.7% to $1.617 billion.
- Net profit after tax attributable to members fell by 4.85% to $257.9 million.
- Final dividend of 70.0 cents per share, fully franked.
- Adjusted net profit after tax (Non-IFRS) decreased by 12.27% to $244.4 million.
Financial Performance
For the 52 weeks ending 27 July 2024, Premier Investments Limited reported a revenue of $1.617 billion, a 2.7% decrease from the previous year. The net profit after tax attributable to members was $257.9 million, down 4.85% from $271.1 million in FY23. This decline is attributed to a challenging retail environment and increased cost pressures.
The adjusted net profit after tax (Non-IFRS) was $244.4 million, reflecting a 12.27% decrease from $278.6 million in FY23. This adjustment accounts for the impact of equity accounting income from investments in Breville and Myer, as well as non-cash impairment expenses.
Dividends and Shareholder Returns
Premier Investments declared a final dividend of 70.0 cents per share, fully franked, with a record date of 11 December 2024 and payable on 8 January 2025. The total dividends for the year amount to 133.0 cents per share, an increase from 130.0 cents in the previous year.
Investment and Segment Performance
The Group's investments in Breville Group Limited and Myer Holdings Limited continue to be significant. The equity accounted value of the Breville investment was $347.2 million, while Myer's investment was valued at $161.0 million. Dividends received from these investments totaled $20.9 million.
The Retail Segment, which includes brands such as Just Jeans, Jay Jays, Jacqui E, Portmans, Dotti, Peter Alexander, and Smiggle, reported a revenue of $1.595 billion, a 2.93% decrease from FY23. The segment's net profit before income tax was $313.9 million, down 10.94% from the previous year.
The decline in revenue and profit reflects the broader challenges facing the retail sector, including increased cost pressures and changing consumer behaviors. The decrease in adjusted net profit after tax indicates potential concerns for investors regarding the company's ability to maintain its profitability in a tough economic environment. The final dividend, however, demonstrates the company's commitment to returning value to shareholders.
Investor Reaction:
Analysts are likely to view the decline in revenue and profit with caution, noting the impact of external economic factors on the company's performance. The increase in total dividends may provide some reassurance to investors, but the overall sentiment could be mixed given the financial results.
Conclusion:
Investors should closely monitor Premier Investments' strategic initiatives and market conditions to assess the potential long-term impacts on their portfolios. The company's ability to navigate the challenging retail environment and maintain profitability will be crucial in sustaining investor confidence.