The Warehouse Group Limited
Interim Financial Statements
For the 26 weeks ended 30 January 2022
For and on behalf of the Board
Joan Withers | Dean Hamilton | |
Chair | Chair of the Audit and Risk Committee | |
21 March 2022 |
Consolidated Income Statement
Unaudited | Unaudited | Audited | ||
26 Weeks | 26 Weeks | 52 Weeks | ||
Ended | Ended | Ended | ||
30 January | 31 January | 1 August | ||
Note | 2022 | 2021 | 2021 | |
$ 000 | $ 000 | $ 000 | ||
Retail sales | 4 | 1,729,984 | 1,808,255 | 3,414,601 |
Cost of retail goods sold | (1,130,424) | (1,152,874) | (2,173,245) | |
Gross profit | 599,560 | 655,381 | 1,241,356 | |
Other income | 3,624 | 2,639 | 7,050 | |
Employee expenses | (297,740) | (286,678) | (573,734) | |
Depreciation and amortisation expenses | 4 | (77,495) | (73,550) | (149,303) |
Other operating expenses | (140,652) | (124,378) | (244,255) | |
Operating profit | 4 | 87,297 | 173,414 | 281,114 |
Unusual items | 5 | - | (79,036) | (86,955) |
Earnings before interest and tax | 87,297 | 94,378 | 194,159 | |
Net interest expense | (18,457) | (18,886) | (37,458) | |
Profit before tax | 68,840 | 75,492 | 156,701 | |
Income tax expense | (19,652) | (21,250) | (40,491) | |
Net profit for the period | 49,188 | 54,242 | 116,210 | |
Attributable to: | ||||
Shareholders of the parent | 50,442 | 54,965 | 117,651 | |
Minority interests | (1,254) | (723) | (1,441) | |
49,188 | 54,242 | 116,210 | ||
Earnings per share attributable to shareholders of the parent: | ||||
Basic earnings per share | 14.6 cents | 15.9 cents | 34.1 cents |
Consolidated Statement of Comprehensive Income
Unaudited | Unaudited | Audited | |
26 Weeks | 26 Weeks | 52 Weeks | |
Ended | Ended | Ended | |
30 January | 31 January | 1 August | |
2022 | 2021 | 2021 | |
$ 000 | $ 000 | $ 000 | |
Net profit for the period | 49,188 | 54,242 | 116,210 |
Items that may be reclassified subsequently to the Income Statement | |||
Movement in foreign currency translation reserve | 383 | (45) | 55 |
Movement in hedge reserves (net of tax) | 9,174 | (640) | 19,188 |
Total comprehensive income for the period | 58,745 | 53,557 | 135,453 |
Attributable to: | |||
Shareholders of the parent | 59,999 | 54,280 | 136,894 |
Minority interest | (1,254) | (723) | (1,441) |
Total comprehensive income | 58,745 | 53,557 | 135,453 |
2
Consolidated Statement of Changes in Equity
Foreign | ||||||||
Currency | ||||||||
Share | Treasury | Hedge | Translation | Retained | Minority | Total | ||
(Unaudited) | Note | Capital | Stock | Reserves | Reserve | Earnings | Interest | Equity |
For the 26 weeks ended 30 January 2022 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | |
Balance at the beginning of the period | 365,517 | (5,282) | 6,171 | (115) | 85,871 | (2,694) | 449,468 | |
Profit for the half year | - | - | - | - | 50,442 | (1,254) | 49,188 | |
Movement in foreign currency translation reserve | - | - | - | 383 | - | - | 383 | |
Movement in derivative cash flow hedges | - | - | 12,741 | - | - | - | 12,741 | |
Tax related to movement in hedge reserve | - | - | (3,567) | - | - | - | (3,567) | |
Total comprehensive income | - | - | 9,174 | 383 | 50,442 | (1,254) | 58,745 | |
Minority put option exercised | - | - | - | - | (1,316) | 983 | (333) | |
Dividends paid | - | - | - | - | (60,698) | (126) | (60,824) | |
Treasury stock dividends received | - | - | - | - | 243 | - | 243 | |
Balance at the end of the period | 365,517 | (5,282) | 15,345 | 268 | 74,542 | (3,091) | 447,299 | |
Foreign | ||||||||
Currency | ||||||||
Share | Treasury | Hedge | Translation | Retained | Minority | Total | ||
(Unaudited) | Capital | Stock | Reserves | Reserve | Earnings | Interest | Equity | |
For the 26 weeks ended 31 January 2021 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | |
Balance at the beginning of the period | 365,517 | (5,456) | (13,017) | (170) | 30,259 | (794) | 376,339 | |
Profit for the half year | - | - | - | - | 54,965 | (723) | 54,242 | |
Movement in foreign currency translation reserve | - | - | - | (45) | - | - | (45) | |
Movement in cash flow and monetised hedges | - | - | (889) | - | - | - | (889) | |
Tax related to movement in hedge reserve | - | - | 249 | - | - | - | 249 | |
Total comprehensive income | - | - | (640) | (45) | 54,965 | (723) | 53,557 | |
Share rights charged to the income statement | - | - | - | - | - | 72 | 72 | |
Minority put options exercised | - | 94 | - | - | (361) | 267 | - | |
Balance at the end of the period | 365,517 | (5,362) | (13,657) | (215) | 84,863 | (1,178) | 429,968 | |
Foreign | ||||||||
Currency | ||||||||
Share | Treasury | Hedge | Translation | Retained | Minority | Total | ||
(Audited) | Capital | Stock | Reserves | Reserve | Earnings | Interest | Equity | |
For the 52 weeks ended 1 August 2021 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | $ 000 | |
Balance at the beginning of the period | 365,517 | (5,456) | (13,017) | (170) | 30,259 | (794) | 376,339 | |
Profit for the year | - | - | - | - | 117,651 | (1,441) | 116,210 | |
Movement in foreign currency translation reserve | - | - | - | 55 | - | - | 55 | |
Movement in derivative cash flow hedges | - | - | 26,651 | - | - | - | 26,651 | |
Tax related to movement in hedge reserve | - | - | (7,463) | - | - | - | (7,463) | |
Total comprehensive income | - | - | 19,188 | 55 | 117,651 | (1,441) | 135,453 | |
Contributions by and distributions to owners: | ||||||||
Share rights charged to the income statement | - | - | - | - | - | 93 | 93 | |
Share rights vested | - | - | - | - | 1,697 | (1,697) | - | |
Minority put options exercised | - | 174 | - | - | (1,558) | 1,145 | (239) | |
Dividends paid | - | - | - | - | (62,432) | - | (62,432) | |
Treasury stock dividends received | - | - | - | - | 254 | - | 254 | |
Balance at the end of the period | 365,517 | (5,282) | 6,171 | (115) | 85,871 | (2,694) | 449,468 |
3
Consolidated Balance Sheet
Unaudited | Unaudited | Audited | ||
As at | As at | As at | ||
30 January | 31 January | 1 August | ||
Note | 2022 | 2021 | 2021 | |
ASSETS | $ 000 | $ 000 | $ 000 | |
Current assets | ||||
Cash and cash equivalents | 16 | 149,966 | 183,585 | 160,526 |
Trade and other receivables | 8 | 89,586 | 86,129 | 79,277 |
Inventories | 7 | 530,615 | 497,740 | 457,151 |
Derivative financial instruments | 17 | 31,536 | 77 | 8,837 |
Taxation receivable | 1,053 | - | - | |
Total current assets | 802,756 | 767,531 | 705,791 | |
Non-current assets | ||||
Derivative financial instruments | 17 | - | - | 1,310 |
Property, plant and equipment | 11 | 199,019 | 195,839 | 194,619 |
Intangible assets | 12 | 189,295 | 149,745 | 166,991 |
Right of use assets | 13 | 699,852 | 751,380 | 736,524 |
Investment in associate | 3 | 4,176 | - | - |
Deferred taxation | 79,904 | 97,211 | 86,120 | |
Total non-current assets | 1,172,246 | 1,194,175 | 1,185,564 | |
Total assets | 1,975,002 | 1,961,706 | 1,891,355 | |
LIABILITIES | ||||
Current liabilities | ||||
Trade and other payables | 9 | 600,310 | 501,644 | 436,579 |
Derivative financial instruments | 17 | - | 31,742 | 4,353 |
Taxation payable | - | 4,255 | 10,878 | |
Lease liabilities | 14 | 96,782 | 96,287 | 97,812 |
Provisions | 10 | 55,457 | 63,029 | 74,515 |
Total current liabilities | 752,549 | 696,957 | 624,137 | |
Non-current liabilities | ||||
Lease liabilities | 14 | 754,144 | 813,861 | 794,379 |
Provisions | 10 | 21,010 | 20,920 | 23,371 |
Total non-current liabilities | 775,154 | 834,781 | 817,750 | |
Total liabilities | 1,527,703 | 1,531,738 | 1,441,887 | |
Net assets | 447,299 | 429,968 | 449,468 | |
EQUITY | ||||
Contributed equity | 360,235 | 360,155 | 360,235 | |
Reserves | 15,613 | (13,872) | 6,056 | |
Retained earnings | 74,542 | 84,863 | 85,871 | |
Total equity attributable to shareholders | 450,390 | 431,146 | 452,162 | |
Minority interest | (3,091) | (1,178) | (2,694) | |
Total equity | 447,299 | 429,968 | 449,468 |
4
Consolidated Statement of Cash Flows
Unaudited | Unaudited | Audited | ||
26 Weeks | 26 Weeks | 52 Weeks | ||
Ended | Ended | Ended | ||
30 January | 31 January | 1 August | ||
Note | 2022 | 2021 | 2021 | |
Cash flows from operating activities | $ 000 | $ 000 | $ 000 | |
Cash received from customers | 1,727,132 | 1,808,006 | 3,425,114 | |
Payments to suppliers and employees | (1,518,505) | (1,584,811) | (3,040,261) | |
COVID-19 Wage subsidy repayment | - | (67,550) | (67,550) | |
Income tax paid | (28,598) | (23,139) | (32,132) | |
Interest paid | (18,519) | (22,467) | (37,910) | |
Net cash flows from operating activities | 161,510 | 110,039 | 247,261 | |
Cash flows from investing activities | ||||
Proceeds from sale of property, plant and equipment | - | 104 | 190 | |
Purchase of property, plant, equipment and software | (57,667) | (39,431) | (83,180) | |
Purchase of associate | 3 | (4,500) | - | - |
Purchase of minority interest | (333) | - | (239) | |
Net cash flows from investing activities | (62,500) | (39,327) | (83,229) | |
Cash flows from financing activities | ||||
Early termination of interest rate swaps | - | (6,622) | (9,767) | |
Lease principal repayments | (48,655) | (48,573) | (99,383) | |
Treasury stock dividends received | 243 | - | 254 | |
Dividends paid to parent shareholders | (61,032) | - | (62,678) | |
Dividends paid to minority shareholders | (126) | - | - | |
Net cash flows from financing activities | (109,570) | (55,195) | (171,574) | |
Net cash flow | (10,560) | 15,517 | (7,542) | |
Opening cash position | 160,526 | 168,068 | 168,068 | |
Closing cash position | 149,966 | 183,585 | 160,526 |
Reconciliation of Operating Cash Flows
Profit after tax | 49,188 | 54,242 | 116,210 | |
Non-cash items | ||||
Depreciation and amortisation expenses | 4 | 77,495 | 73,550 | 149,303 |
Loss from investment in associate | 324 | - | - | |
Right of use asset impairment | 13 | - | 625 | 1,582 |
Share based payment expense | - | 72 | 93 | |
COVID-19 landlord rent relief | 14 | (812) | - | - |
Movement in deferred tax | 2,651 | 3,960 | 8,219 | |
Interest rate hedge derivative write-off | - | 195 | 3,340 | |
Movement in monetised derivative hedge reserve | - | (2,264) | - | |
Total non-cash items | 79,658 | 76,138 | 162,537 | |
Items classified as investing or financing activities | ||||
Net loss on disposal of property, plant and equipment | 440 | 99 | 637 | |
Gain on lease terminations | 15 | (2,327) | (547) | (1,237) |
Supplementary dividend tax credit | 334 | - | 246 | |
Total investing and financing adjustments | (1,553) | (448) | (354) | |
Changes in assets and liabilities | ||||
Trade and other receivables | (10,309) | (1,866) | 4,986 | |
Inventories | (73,464) | (104,130) | (63,541) | |
Trade and other payables | 151,340 | 93,737 | 14,497 | |
Provisions | (21,419) | (907) | 13,030 | |
Income tax | (11,931) | (6,727) | (104) | |
Total changes in assets and liabilities | 34,217 | (19,893) | (31,132) | |
Net cash flows from operating activities | 161,510 | 110,039 | 247,261 |
5
This is an excerpt of the original content. To continue reading it, access the original document here.