Nick Scali (NCK) H2 2024 earnings summary

Executive summary

• ANZ written sales orders reached AUD 447.4 million, up 2.4% year-over-year, with group written sales orders at AUD 454.2 million, up 3.9% year-over-year.

• Group revenue declined 7.8% to AUD 468.2 million for FY24, reflecting normalization after prior year delivery backlog.

• Group underlying profit after tax (excluding acquisition costs) was AUD 82.1 million.

• UK acquisition of Fabb Furniture (Anglia Home Furnishings Ltd) completed in May 2024, with results included from acquisition date.

• Final dividend of AUD 0.33 per share, fully franked, bringing full year dividends to AUD 0.68 per share.

Financial highlights

• Group gross margin improved to 65.5% (ANZ 66.0%, up 2.5% year-over-year; UK 41.5–42.0%).

• Group revenue was AUD 468.2 million, down 7.8% versus FY23, while group written sales orders rose 3.9% to AUD 454.2 million.

• Underlying EBITDA was AUD 175.0 million and EBIT AUD 129.5 million, both lower than FY23.

• Cash and bank deposits at June 30 were AUD 111.3 million; net cash position AUD 39.6 million.

• Basic and diluted EPS fell 20.9% to 98.7 cents.

Outlook and guidance

• Store network expansion planned: 2 Nick Scali stores and 3–5 Plush stores expected to open in FY25.

• Written sales growth for June and July combined was -1.2% year-over-year, with New Zealand notably weak.

• UK trading expected to deteriorate in 1H FY25 due to store refurbishments and product range changes amid tough market conditions.