Hallensteins total sales grew but Glassons New Zealand had the toughest result. Photo / File
Hallenstein Glassons has reported a bigger profit thanks mostly to Australian shoppers.
The company will reshuffle its Australian arms as subsidiaries after they drove the group’s positive financial result for the year.
The group’s total sales increased by 6.3% to $435.6 million in the year to August 1, up from $409.7m a year earlier.
It reported a net profit after tax of $34.5m, up 7.8%.
Overall gross profit margin increased from 57.3% to 59.4%.
Hallenstein Glasson chief executive Chris Kinraid said it was a pleasing result given the difficult retail environment in Australasia.
He said the the Australian market drove the positive result.
“The environment in New Zealand remains more challenging as the current economic conditions and cost‐of‐living pressures continue to impact on consumers spending habits across both brands,” Kinraid said.
Hallensteins total sales increased by 1.3% to $107.5m (including Australia), up from $106m in FY23, with a net profit after tax of $5.3m, increasing by 37.4%.
Glassons New Zealand had the toughest result, with its total sales falling2.1% to $110m.
The New Zealand arm reported a profit after tax of $10.8m, although it was down 1% on the previous year.
Glassons Australia was the strongest performer, with total sales increasing by 14.1% to $218.1m from $191.2m in FY23.
Its net profit after tax climbed 14% to $19.5m.
Driven by this result, the group has registered its Australian Hallenstein and Glasson arms with the Australian Securities & Investments Commission (ASIC).
Effective from August 2, it will give rise to two operating subsidiaries of the business.
The group’s directors declared a final dividend of 26.5 cents per share to be paid on 13th December.
Back in July 2023, Chris Kinraid left KMD Brands and was appointed new chief executive at Hallenstein Glasson.
Hallenstein Glasson said Kinraid would replace departing chief Stuart Duncan, who announced his resignation in May 2023.
Kinraid said Hallenstein Glasson had leading brand positioning and an ability to quickly adapt to customer needs.
“I am looking forward to joining this established and high-performing team and supporting the continued growth momentum and success of the group,” he said of his new gig.
Hallenstein Glasson chair Warren Bell said he was looking forward to Kincaid’s contribution.
“In addition to his wide retail and commercial experience, he understands the DNA of our brands which will be a significant advantage.”
Auditors PwC: Cited disruptions to operations from that IT upgrade.