Premier Investments Limited, announced record sales and profit with exceptional cashflows

Team Veye | 21 May 2020 ASX - PMV
Premier Investments Limited, announced record sales and profit with exceptional cashflows

Premier Investments Limited (ASX: PMV)

Premier Investments Record 1H20 NPAT of $99.6m, up 12.2%

Record Premier Retail 1H20 sales of $732.1 million, up 7.6% 

Record Premier Retail 1H20 EBIT of $126.1 million, up 10.7% 

Record Interim Dividend of 34 cps

Premier Investments Limited (ASX: PMV) (“Premier”) on 20 March 2020 reported net profit after tax (NPAT) of $99.6 million for the 26 weeks ended 25 January 2020 up 12.2% on 1H19 (1H19: $88.8 million).

 

(Chart source: TradingView)

Highlights for 1H20

  • Premier Investments Group NPAT $99.6 million, up 12.2% on 1H19 
  • Premier Retail EBIT up 10.7% to a record $126.1 million
  • Premier Retail sales $732.1 million up 7.6% on 1H19 with like-for-like (“LFL”) sales up 4.3% (constant currency) 
  • Apparel brands total LFL sales growth of 7.5% on 1H19 with two year LFL sales growth of 16.9% on 1H18 
  • Online sales of a record $97.2 million, up 28.4% 
  • Record Peter Alexander sales up 11.1% to $144.8 million, underpinned by both strategic growth initiatives and strong LFL sales growth 
  • Smiggle Global Retail record sales to consumers up 14.2% on 1H19 
  • Record Smiggle reported sales of $193.7 million, up 8.3% on 1H19 
  • Net cash generated (operating less investing activities) of $133.0 million, up 41% on 1H19 

 

        

(Graphic Source – Company Reports)

  • Premier’s stake in Breville market value of $707.4 million at 25 January 2020 (Balance sheet value $245.6 million) 
  • Record interim dividend of 34 cps fully franked reflects the Premier Board’s assessment of the record 1H20 results, strong balance sheet and long-term strength of the Group (Data Source – Company Reports)

 

Veye’s Take

During the reporting period, Premier traded through Brexit uncertainty in the United Kingdom, protests in Hong Kong, devastating bushfires in Australia and a continuing fall in the Australian dollar. Despite these factors, Premier delivered record results which is a testament to its strategy that it put in place almost a decade ago. Premier announced record sales and profit with exceptional cashflows thus allowing it to provide the Group with great flexibility in these uncertain times. Premier is a very strong company having a strong balance sheet with minimal debt and a strong cash position.  It has 7 distinctive brands that delivered a record 1H20 result. The stock has formed a bullish MACD on its longer t/f. Having strong support at $14.30, it may spend some time in between this and the current price. It can have the potential of giving good returns in the short to medium term. Veye maintains a "Buy" on “Premier Investments Ltd” at the current price of $15.48

Disclaimer

Veye Pty Ltd (ABN 58 623 120 865) authorised representative (AR No. 001261006) of Vested Equities Pty Ltd which holds an Australian Financial Services License (AFSL No. 478987). Veye is authorised to share only generic financial views through its website, reports and newsletters without taking into consideration your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure the accuracy of the content and that the information is gathered and processed from reliable resources, it is recommended you seek professional advice from your financial advisor or stockbroker before acting on any of our recommendations. Veye Pty Ltd advises it’s users to pursue investing as a long-term goal. Stocks are subject to real time changes therefore all the information we share represents our views at the date of publishing and we request our readers not to interpret our reports as direct recommendations. Past performance is no indication of potential future performance. The securities and financial products we study and share information on in Veye Reports may have a product disclosure statement or other offer document associated with them. You should obtain a copy of these documents before making any decision about acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Veye Pty Ltd confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report (as mentioned on the website www.veye.com.au).