Beacon Lighting (ASX:BLX) share price shines on record profit results

The lighting specialist company reported its FY21 results this morning.

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Variety of lighting fixtures displayed in a shop representing Beacon Lighting share price

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The Beacon Lighting Group Ltd (ASX: BLX) share price pushed higher today, finishing up 3.95% to $1.98 per share at market close.

This comes after the lighting specialist company released its full year results for the 2021 financial year (FY21) this morning.

We take a look at the highlights below.

Beacon Lighting share price lifts on FY21 results

  • Sales increased 14.7% to $288.7 million
  • Gross profit of 197.3 million, an increase of 23.1% year-on-year
  • Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 37.4% to $85.96 million, up from $62.57 million in FY20
  • Net profit after tax (NPAT) of $37.66 million, up 69.4% from the $22.23 million reported in FY20
  • Record dividend of 8.80 cents per share (fully franked) declared for FY21, up from 5 cents in FY20

(*Note, the above results are statutory.)

What happened during the 2021 financial year?

Reporting on its record sales and profit results, Beacon Lighting revealed that its company store comparative sales increased by 13.3% year-on-year. Meanwhile, online sales were spurred to a new record by COVID stay at home orders, increasing 60.3%. And international sales soared 45.3% to a record $12.3 million.

Beacon Lighting also opened 4 new stores during the financial year, with 1 new store in Queensland, 2 in New South Wales, and 1 in Western Australia.

In line with record online sales, the company upgraded its website for a smoother customer experience.

While revenues were up, operating expenses were down, falling by 3.6% of sales to $112.2 million.

Beacon ending the year with a cash balance of 33.8 million following investment property purchases totalling $15.2 million.

The company cautioned that rolling state lockdowns continue to impact its retail sales.

What’s next for Beacon Lighting

Looking ahead, the company plans to open more new stores, with 2 slated to open in Western Australia and 1 more in Victoria. It will relocate 2 existing stores in New South Wales, 1 in Victoria and 1 in Queensland.

Beacon Lighting also reported it will launch direct to a consumer sales website in the United States. It also plans to expand its international sales of Australian Designed products into the China market.

It said it will continue to target a dividend payout ratio in the range of 50–60%. The Dividend Reinvestment Plan remains suspended until further notice.

The Beacon Lighting share price is up 45% over the past full year.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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