NOEL LEEMING A "STANDOUT" IN TWG ANNUAL RESULT

By Wares September 21, 2018 Industry news

Noel Leeming has a "standout year" in TWG's FY2018 numbers released this morning.

The Warehouse Group's latest year end figures (the year to 29 July 2018) were released this morning.

Overall TWG retail revenue was just under $3 billion (a modest +0.5% on FY2017) but while net profit was +12% at $22.9m, operating profit fell 15% to $91.4 million and TWG's group retail operating margin fell to 3.1% from 3.6% last FY.

Thanks to a very strong first half, however, Noel Leeming again performed well, delivering fully 29% of total TWG sales revenue.

Indeed, TWG says in its annual report: "A real highlight of FY18 has been Noel Leeming’s performance. It has had what can only be described as a standout year.

"It continues to benefit from advantages of scale, both in terms of volume and store footprint, and the expertise offered through the assisted sales model."

Noel Leeming's FY2018 revenue was $880.5 million (+8.6%), operating profit +61.8% at $31.2 million and operating margins rose from 2.4% in FY2017 to 3.5% in FY2018.

The commercial division has performed well with sales +10.5%, with more expected.

The Noel Leeming Tech Solutions business is also showing good returns, three years since its launch.

Services now make up 2.7% of all sales, up from 2.5% in FY2017 and, says TWG, "we expect this growth to continue."

Plans for Noel Leeming for the year ahead include investment in merchandise and planning systems, further street-facing out-of-hours click & collect lockers and for both NL and Torpedo7 TWG is setting about "rectifying historical under-investment in logistics and fulfilment", and is already "executing a plan to turn what is currently a weakness into a strategic advantage". 

Overall TWG online sales at $221 million for FY2018 (+6.6% on FY2017) now make up 7.4% of all TWG sales (just +0.4% on last year).

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