Nick Scali Limited reports FY24 results

Nick Scali Limited (ASX: $NCK) has released its financial results for the year ended 30 June 2024, reporting a group underlying net profit after tax of $82.1m. The company's Australian and New Zealand written sales orders increased by 2.4% compared to FY23, with a gross margin of 66.0%. Additionally, the acquisition of Fabb Furniture in the UK was successfully completed on 8 May 2024.

Executive Commentary on FY24 Results

The Group is pleased to announce a strong underlying net profit after tax for FY24, excluding transaction costs related to the UK acquisition. The completion of the Fabb Furniture acquisition marks a significant milestone for our expansion into the UK market. We are encouraged by the growth in written sales orders for Australia and New Zealand, and the positive performance of our online segment. However, we are mindful of the challenges in the UK market, including tougher conditions and supply chain disruptions affecting written sales orders. We remain committed to our strategic store network expansion, with plans to open additional Nick Scali and Plush stores in FY25.

Summary of FY24 Results and Outlook

Nick Scali Limited's FY24 results reflect a strong performance in the Australian and New Zealand markets, with an increase in written sales orders and gross margin. The successful acquisition of Fabb Furniture in the UK demonstrates the company's commitment to international expansion. The Group's focus on enhancing the online user experience has resulted in significant growth in online written sales orders. Looking ahead, the company anticipates challenges in the UK market due to tougher conditions and supply chain disruptions, which may impact written sales orders. Despite this, Nick Scali remains optimistic about its store network expansion plans for FY25, aiming to open new Nick Scali and Plush stores to drive future growth.