The Warehouse Group (WHS) H1 2025 earnings summary

Executive summary

• Group sales for H1 FY25 were $1.6 billion, down 1.6% year-over-year, with early signs of turnaround progress despite subdued consumer demand and economic headwinds.

• Net profit after tax from continuing operations was $11.8 million, reversing a prior year loss, but adjusted net profit was $8.05 million due to restructuring and lease adjustments.

• Operating profit (EBIT) was $19.5 million, down from $43.0 million last year, reflecting margin pressure and cost actions.

• No interim dividend declared due to current performance and outlook.

• Positive net cash position of $19 million, improved from net debt at FY24 year end.

Financial highlights

• Group sales were $1.6 billion, down 1.6% year-over-year; gross profit margin declined 180 bps to 32.5%.

• Cost of doing business reduced by 2.8%, now at 31.3% of sales; Support Office costs down 12.8%.

• EBIT fell to $19.5 million from $43 million; adjusted NPAT $10.7 million, reported NPAT $11.8 million.

• Operating cash flow was $122.9 million, down from $137.5 million year-over-year; free cash flow yield increased to 33.3%.

• Project expenditure reduced sharply to $8.9 million from $50.2 million in prior year.

Outlook and guidance

• FY25 H2 EBIT expected to be broadly in line with FY24 H2 EBIT loss of around $14 million.

• Guidance assumes continued gross margin pressure from legacy stock clearance and promotional activity.

• Economic challenges and subdued consumer demand expected to persist through 2025, with recovery anticipated as inflation and rates ease.

• Full-year project spend guidance updated to $23–28 million.