Bunnings reported its New Zealand result. Photo / Getty Images
Bunnings reported its New Zealand result. Photo / Getty Images
Revenue from national DIY, garden and homeware chain Bunnings in New Zealand is down, but profit rose partly due to marketing expenses dropping.
The business, owned by Australian Stock Exchange-listed Wesfarmers, employs around 5000-plus staff in its stores, trade and distribution centres and has a big retail presence in thiscountry.
Latest accounts for the year to June 30, 2024 have appeared on the Companies Office.
Revenue dropped from 2023’s $1.77 billion to $1.76b in 2024 but after-tax profit rose from $72.5 million to $79m, in part due to marketing being cut by around two-thirds from $3m to $1.2m.
The accounts were signed by Bunnings’ bosses in Australia, chief executive Mike Schneider and Wesfarmers’ Michael Howard on behalf of the board.
A massive loan from NZ Finance Holdings which props up the New Zealand-registered Bunnings is being gradually repaid, that debt falling from $401m last year to $368m this year.
The money is an inter-company loan and Bunnings NZ is not being charged interest on it, accounts recorded.
Operating profit before tax and finance costs rose from $115m to $129m. Bunnings paid $31m tax in 2023 but $38.8m tax in 2024.
Bunnings has a big presence in New Zealand. Photo / Getty Images
Bunnings Australia this month released a frightening CCTV compilation of some of the worst attacks their staff members have had to endure after they were slammed for using facial recognition technology.
The Office of the Australian Information Commissioner announced that Bunnings had breached the rights of shoppers by collecting their personal and sensitive information through the system.
In its defence they have since launched grim footage of assaults on their staff.
A member of the public was also caught on camera grabbing a female Bunnings employee by the shirt before shoving her and throwing a basket at her head.
Bunnings’ profit in New Zealand contrasts with rival Mitre 10, which recorded a $98.9m loss for the June 30, 2024 year, up on 2023’s $50.7m loss.
Bank debt has blown out from $68.5m to $161.8m and auditors PwC noted the new IT system’s toll on the chain.
“The higher debt level resulted from significant expenditure in the customisation and configuration of cloud-based software,” PwC wrote in the accounts, out last month.
Andrea Scown, Mitre 10 (New Zealand) chief executive, also acknowledged “a complex programme of technology replacement and transformation of the operating model”.
“Horrific” is how Mitre 10’s software system upgrade has been described by a person involved with the project.
He said only a single Mitre 10 store was using the new cloud-based system after a gruelling three years and people were being made redundant at head office.
“Only Ponsonby - which is the pilot because it’s owned by the co-operative,” said the insider, who expressed extreme disappointment in the progress and cost of the upgrade so far.
The person pointed to the latest annual result for the 85-shop business as an example of the crippling cost at the co-op, due to hold its annual meeting next Thursday afternoon in the capital.
Last year, the Herald reported Bunnings NZ’s revenue was up but profit dropped due to expenses rising. The company pushed up revenue from $1.68b in 2022 to make $1.77b in 2023.
But selling expenses also rose from $276m to $286m.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
