Trading update for the Warehouse Group
The Warehouse Group recently updated its guidance for its half year result after it stated on December 21, 2020, that it expected Adjusted Net Profit After Tax (Adjusted NPAT) for the half year (ended 31 January 2021) to exceed $70 million. It has since been revealed that this expectation was reported before the Group accounted for the impact of repaying the wage subsidy compared to $46.2 million in FY20, according to a recent NZX.com report.
Due to continued strong trading through the week leading up to Christmas and over the Boxing Day and New Year period, and revised expectations for trading in January, the Warehouse Group recently upgraded its guidance of Adjusted NPAT for the half year, which it now expects to exceed $90 million, according to the NZX.com report.
The Warehouse Group does maintain the expectation that Gross Margin will be up circa 170 basis points for the first half and that the Group’s cash position at the half year will be better than the FY20 year-end position of $168 million, according to the report.
The Group also received a COVID wage of $68 million, which was repaid in full on December 22. Full year guidance will be issued when the half year financial results are released in March, according to the report.