Bunnings' full-year result has just been released and it makes for interesting reading. Photo / Darren Breeze
Bunnings' full-year result has just been released and it makes for interesting reading. Photo / Darren Breeze
Revenue from national DIY, garden and homeware chain Bunnings in New Zealand is up, but profit dropped due to expenses rising.
The business, owned by Australian Stock Exchange-listed Wesfarmers, employs 5000-plus staff in its stores, trade and distribution centres and has a big retail presence in this country.
Latest accountsappeared on the Companies Office on Friday.
New Zealand-registered Bunnings Ltd pushed up revenue from $1.68 billion last year to make $1.77b in the year to June 30, 2023.
But selling expenses also rose from $276 million to $286m.
That was one of the reasons why the net after-tax profit fell from last year’s $87m to $72m in the latest 12 months.
Bunnings paid $36m in New Zealand tax last year but only $31m this year, due to its pre-tax profit falling from $123m to $103m.
Accounts were signed on November 15 by Bunnings’ bosses in Australia -Michael Schneider, who is managing director of Bunnings Group, and Rachael McVitty, who is chief financial officer.
Those accounts filed with the Companies Office also declared a massive $401m “inter-company loan” which Bunnings owes to NZ Finance Holdings.
“The directors of NZ Finance Holdings confirmed in writing that they will not demand repayment of this loan in the ensuing 12 months from the date the June 30, 2023, financial statements are signed.
“The directors also confirm NZ Finance Holdings will not recall the loan unless Bunnings NZ has sufficient surplus capital to make the repayments and continue to operate as a going concern,” the latest accounts stated.
That $401m loan stood at just $324m in the 2022 financial year.
“The inter-company borrowings are unsecured and repayable on demand,” latest accounts added, also recording there was no interest payable on that huge $401m.
In Australasia, Bunnings has 282 large warehouse stores, 67 smaller format stores, and 32 trade centres and frame and truss sites. In both countries, it employs 53,000 people.
Bunnings paid $36m in New Zealand tax last year but only $31m this year, due to its pre-tax profit falling.
In August, Bunnings’ director of store operations in New Zealand, Ben Camire, said redundancies from head office were planned.
No exact numbers were given but the Herald reported that around 100 support roles could be affected.
The chain’s headquarters is at Central Park, owned by Oyster Capital, which has tried to sell that office precinct.
“The changes we’re proposing don’t impact the 5000-plus team who work in our stores, trade centres and distribution centre,” Camire said in August.
Around 340 staff are understood to work at the support office in Auckland now.
The business only moved to leased premises 660-670 Great South Road, Ellerslie, in March 2019. Before that, it was at Carbine Road, Mt Wellington.
Locally-owned cooperative Mitre 10 competes with Bunnings, with its national chain of 85 store businesses owned by 67 shareholders. All up, 9.4m shares are on issue, with the biggest owner the powerful Riviera Hardware Holdings, with five Mitre 10s Auckland. On Friday, the Herald published a Mitre 10 power list, explaining who owns what.
Riviera owns Mitre 10 Mega Albany, Mitre 10 Mega New Lynn, Mitre 10 Mega Warkworth, Mitre 10 Whangaparāoa, the new $30m Mitre 10 Mega Silverdale opened in August, Riviera Prenail, five Columbus Coffee cafes, Riviera Imports and the Riviera Distribution Centre.
The only media statement on the Bunnings’ website in New Zealand this year was issued on November 14.
That said following a recent Safe Work Australia report and consultation with suppliers, it had decided to withdraw a limited range of engineered stone benchtops from December 31.
It said the vast majority of benchtops it sold were laminate and timber, but it was progressing with sourcing other alternative products.
“The decision to adjust our range now will give our suppliers certainty about future sourcing of materials and should mean we’re well positioned to offer a fully compliant range well ahead of any changes being mandated,” the business said.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
