Briscoe Group's H1 FY25 performance overview

Briscoe Group (ASX:BGP) has reported a robust performance for the half-year ended 28 July 2024. The company achieved a record half-year sales with group sales reaching $372.1m, reflecting a 0.77% increase. Despite the challenges posed by tough economic conditions, Briscoe Group's solid online performance, gross profit performance, and strong balance sheet have contributed to a strong financial position. The net cash at the period end stood at $131.8m, and the total inventories decreased by $13.9m from the previous year. Additionally, the company's strategic initiatives have played a significant role in driving increased profitability.

Executive commentary on H1 FY25 performance and strategic initiatives

The company's strategic plan has been refreshed and is now in place for the period of 2024 to 2027. Key supply chain transformation projects, including the successful launch of a new Warehouse Management System (WMS) and the completion of land purchase for a new Auckland Distribution Center in Drury, have been instrumental in contributing to the increased profitability. Briscoe Group has also achieved record levels of customer satisfaction through Net Promoter Score (NPS) across both stores and online. The company's focus on online customer experience improvements, including the introduction of the Multi Buy promotional mechanic, Express Delivery options, and Apple Pay payment option, has further enhanced its performance. Moreover, the significant growth in Click & Collect, with a 16% year-on-year increase, reflects the company's commitment to improving customer convenience and satisfaction.

Summary of H1 FY25 performance and outlook

Briscoe Group's H1 FY25 performance has demonstrated resilience and adaptability in the face of challenging economic conditions. The company's strategic initiatives, including the successful implementation of a new Warehouse Management System and the land purchase for a new Auckland Distribution Center, are expected to contribute to increased profitability and improved customer experience. With a strong focus on sustainability, Briscoe Group has made significant progress in its sustainability strategy, governance, environmental initiatives, and community engagement. Looking ahead, the company aims to deliver the best retail experience in New Zealand by exploring new business opportunities, accelerating direct-to-customer sales, and focusing on retail experience evolution. Briscoe Group's solid financial position, coupled with its experienced leadership team, positions the company well to navigate the challenging economic times and continue its growth trajectory.