Smiggle Singapore delivering outstanding growth - Premier

24 Sep '12

3 min read

Premier Investments Limited (Premier) reported a profit before tax of $92.8 million and a net profit after tax of $68.2 million NPAT for the year ended 28 July 2012, up 68 percent on the previous year. Premier Retail (The Just Group) EBIT increased 23 percent to $80.4 million and 2H12 EBIT increased by 130% to $29.3 million despite the difficult macro environment.

In addition, Premier’s investment revenues increased by 26 percent to $27.2 million.

Highlights

- Successful implementation of strategic review initiatives is delivering exceptional profit results despite tough retail environment

- Premier consolidated net profit after tax (NPAT) of $68.2 million, up 68 percent on previous year

- Premier Retail (The Just Group) underlying EBIT $80.4 million, up 23 percent and 2H12 EBIT up 130 percent

- Strong contributions from online and Peter Alexander and Smiggle

- Smiggle expansion into Asia enormously successful, expansion into Malaysia and Japan announced

- Cost-out program has delivered $27.8 million in cost reductions

- Fully franked final dividend of 18 cents per share, total FY12 of 36 cents per share in line with the prior year

- Strong balance sheet maintained with $294.2 million cash on hand

- Premier Retail sees momentum changing with Q4 FY12 improving and first 7 weeks of

FY13 with positive LFL growth

- Mark McInnes to be appointed to Premier Investments Limited Board of Directors

Premier’s Chairman, Mr Solomon Lew said: “The retail environment in Australia continues to be challenging. In this context, we are pleased to be able to report a comparatively strong result to our shareholders.”

“Premier’s results demonstrate its unique position with solid earnings growth, significant organic growth opportunities from existing businesses and a strong balance sheet. Together, this provides Premier with the financial strength to take advantage of new growth opportunities while continuing to seek to maximise returns from existing businesses.”

Expansion into Asia for the Smiggle and Peter Alexander brands represents a major and unique growth opportunity for Premier Retail. Premier Retail now operates 13 Smiggle stores in Singapore, with plans to open 5-10 additional stores in Singapore over the next 12-24 months. Premier is pleased to note Smiggle Singapore is already a very profitable business.

Premier Retail has also identified Malaysia and Japan as the next markets to target as part of the next phase of expansion into the region. The plans to expand Smiggle into Malaysia and Japan are well-advanced, with new Smiggle stores expected to open in Malaysia and Japan in late 2013. Premier sees potential for over 30 storesin Malaysia and 15-30 stores in Japan over the next 3-5 years.

The online launch of Peter Alexander into the Singapore market has likewise been well received, with the opening of a Peter Alexander flagship store in Singapore currently being evaluated.

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Premier Investments Limited

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