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


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