Super Retail’s super profit

Super Retail Group (ASX:SUL), has today reported a 23% jump in net profit after tax for the 2013 financial year.

Net profit after tax came in at $102.7 million, on revenues of $2.0 billion, with the company reporting strong like-for like sales from all divisions. The Auto Retailing division, which includes Supercheap Auto stores, reported sales of $789 million, and like for like sales growth of 5%. It continues the brands strong run of growing same store sales since 2008.

The Leisure division, which contains brands Rays Outdoors, BCF Boating Camping Fishing and the FCO Fishing Camping Outdoors brand, saw sales of $522.5 million, and like for like growth of 3.1%. Sports Retailing, which includes Rebel and Amart Sports businesses saw $703.5 million in sales, 53% higher than the previous period. Like for like sales growth was strong at 8%.

But Super Retail is not sitting on its laurels. The company plans to spend around $110 million on capital expenditure in 2014 to support its further development and growth, as well as keeping competitors like Metcash’s (ASX:MTS) Autobarn stores, as well as Woolworths’ (ASX:WOW) Big W and Wesfarmers’ (ASX:WES) Target and Kmart honest.

Super Retail plans to roll out new stores as well as refurbish existing stores, is developing customer loyalty programs, improving the group’s supply chain, with new distribution centres, as well as increasing the efficiency and productivity of the group’s operations.

Foolish takeaway

Currently trading on a trailing P/E ratio of 23 times, Super Retail doesn’t appear a bargain. But if the company can continue to grow in the near future as it has over the past five years, today’s share price might look super cheap!

Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool writer/analyst Mike King owns shares in Woolworths.

Top 3 ASX Blue Chips To Buy For 2019

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked…

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of The Motley Fool’s Top 3 Blue Chip Stocks for 2019.

Each one pays a fully franked dividend. The names of these Top 3 ASX Blue Chips are included in a specially prepared FREE report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

See the 3 blue chip stocks

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.