Bunnings reports FY21 result

27/08/2021

Image source: bunnings.com.au

Bunnings today announced results for the year ended 30 June 2021, with operating revenue increasing by 12.5 per cent to $16.9 billion and earnings increasing by 21.3 per cent to $2.2 billion, excluding net property contribution.

Total store sales grew by 12.4 per cent, with a store-on-store sales increase of 11.9 per cent.

Strong performance was achieved across all major trading regions and product categories, led by gardening and outdoor living, tools and general hardware.

While consumer sales moderated from mid-March, as the business started cycling elevated demand from last year, the second half of the year saw continued strong demand from Bunnings’ commercial customers as a focus on the trade business gained further traction. In the second half, total store sales increased 0.7 per cent while store-on-store sales declined 2.1 per cent. Second half sales grew 25.3 per cent on a two-year basis, reflecting the strong growth in the second half of FY20.

Despite the need to regularly adjust operations to respond to the ever-changing COVID environment, Bunnings continually invested in its team, customer experience and service as well as digital innovation to drive growth.

Changes were also made to improve the ease of shopping for customers through new showroom experiences including kitchen design, bathroom and power garden. In the digital space, interactive maps were added to Bunnings’ Product Finder App helping customers locate products and map the fastest route around the store.

Bunnings strengthened its service offer for commercial customers, creating a more convenient in-store experience with the rollout of a new format trade service area in 24 stores, with more than 100 planned for the year ahead.

Over the last 12 months, a record 2.2 million transactions were also completed through the Bunnings PowerPass App.

Adelaide Tools also opened its first new-format store in Parafield, South Australia. The strong performance of the store has given the local management team the confidence to expand into Western Australia in the next few months.

Bunnings Managing Director, Mike Schneider said strong results this year could not have been achieved without the hard work of our team and suppliers who have delivered above and beyond for our customers throughout a challenging 12 months.

“During the year, the team refreshed thousands of products, introduced new showroom experiences, delivered a new retail website and continued to invest in enhancements to our digital offer for customers. Our commercial strategy hit its strides with the rollout of our new trade service areas, more relevant products and services for builders and tradies and Adelaide Tools launching a new store format that provides the foundation for the brand’s growth,” he said.

“While the current operating environment remains uncertain, our trading performance in the 2022 financial year is expected to moderate following the extraordinary growth recorded in the 2021 financial year, which saw Australians and New Zealanders spending more time at home due to COVID-19 restrictions. In the long term, we remain confident in our strategy and the opportunities ahead for our business and our team,” he added.

Throughout this year Bunnings opened 16 new stores and closed 10 stores. At the end of the period there were 278 warehouses, 70 smaller format stores and 30 trade centres in the Bunnings network and five Adelaide Tools stores, including a new format store that was opened in Parafield, South Australia.

One additional Bunnings’s warehouse was opened in July, with a further six warehouses, three smaller format stores and two trade centres currently under construction, with five due to complete in the first half of the 2022 financial year.