Super Retail (ASX:SUL) share price falls despite surge in sales

The Super Retail Group share price is moving around this morning following release of the half-year results. Here are some details.

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The Super Retail Group Ltd (ASX: SUL) share price opened around 2% higher this morning following the release of the company’s half-year results. 

At the time of writing, the Super Retail Group share price is approximately $11.30 a share, down 2.6%.

Let’s check out the half-year performance and what it might mean for the Super Retail Group share price.

Super Retail share price slumps despite strong half-year results

Super Group Retail reported total group sales of $1.78 billion for 1HFY21. This is a 23% increase from the prior corresponding period (pcp). Online sales soared 87% to $237.4 million.

The company’s group segment earnings before interest, tax, depreciation and amortisation (EBITDA) powered up 95% to $311.4 million. Statutory net profit after tax (NPAT) charged 201% higher to $172.8 million. Underlying NPAT also blasted up 139% reaching $177.1 million.

The Group had no bank debt and a cash position of $416.8 million at the end of the period. The Super Retail Group fully franked interim dividend is 33 cents per share.

Commenting on the performance, Chief Executive Officer and Group Managing Director, Anthony Heraghty said: 

We are pleased with a first half financial performance characterised by robust top-line growth, higher gross margin and strong operating leverage. Our omni-retail capability has been instrumental in enabling the Group to pivot towards shifting consumer spending habits and deliver profitable growth, underpinned by strong digital sales.

The strong operating leverage that the Group has been able to deliver in the first half, during a period of robust online sales growth, clearly reinforces the profitability of our digital sales and the scalability of our omni-retail platform.

Company snapshot

Super Retail Group owns and operates a portfolio of retail brands across Australia. The brands include automotive retailer Supercheap Auto, outdoor and leisure retailers Macpac BCF, and sporting retailer Rebel Sport.

The Group fulfilled over 2 million online orders during the first half and increased the membership of its online loyalty club by adding 700,000 more members than in the pcp.

Over the past 12 months, the Super Retail Group share price has gained roughly 29%.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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