Adairs Limited (ASX: $ADH) Interim Financial Report Highlights

Adairs Limited (ASX: $ADH) has released its Interim Financial Report for the 27-week period ended 31 December 2023. The report reveals a total sales figure of $302.4 million, representing a decrease of -10.1% from the prior corresponding period. The gross profit margin improved by +170bps, reaching $143.6 million. The company declared an interim dividend of 5.0 cents per share, with a record date of 12 March 2024 and payment on 8 April 2024. The net debt as of 31 December 2023 was $58.6 million, reflecting a reduction of -$15.5 million since 25 June 2023.

Executive Commentary on Financial Performance

The directors of Adairs Limited declared an interim dividend on ordinary shares in respect of the 27 weeks ended 31 December 2023. The total amount of the dividend is $8.7 million, representing a fully franked dividend of $0.05 per share. The directors also highlighted the decline in total sales, primarily impacted by a fall in customer traffic, both in stores and online, reflecting the weaker macro trading environment. Despite improved pricing strategy and cost management, the decline in sales led to a decrease in underlying EBIT. The company's net debt as of 31 December 2023 was $58.6 million, reflecting a reduction of -$15.5 million since 25 June 2023.

Summary of Adairs Limited Interim Financial Report

Adairs Limited (ASX: $ADH) reported a decrease in total sales to $302.4 million for the 27 weeks ended 31 December 2023, with a gross profit margin of $143.6 million. The company declared an interim dividend of 5.0 cents per share, with a record date of 12 March 2024 and payment on 8 April 2024. Despite challenges in customer traffic and weaker trading environment, the company managed to improve its gross profit margin. The net debt as of 31 December 2023 was $58.6 million, reflecting a reduction of -$15.5 million since 25 June 2023. The company's directors expressed confidence in the company's ability to meet its obligations as and when they fall due over the next 12 months and beyond through the generation of operating cash flows and available finance facilities.