The Premier Investments Limited (ASX: PMV) share price is edging higher on Thursday.
In morning trade, the diversified retailer's shares are up slightly to $24.81 following the release of its FY 2023 results.
Premier Investments share price higher on FY 2023 results
- Premier Retail sales up 9.7% to $1,643.5 million
- Earnings before interest and tax (EBIT) up 1.5% to $357.9 million
- EBIT before significant items up 6.4% to $356.5 million
- Adjusted net profit after tax up 6.4% to $278.6 million
- Fully ranked full-year dividend up 4% to a record of 130 cents per share
What happened in FY 2023?
For the 12 months ended 31 July, Premier Investments reported a 9.7% lift in sales to a record of $1,643.5 million.
This reflects record Peter Alexander sales of $478.9 million (up 11.8%), record Smiggle global sales of $319.8 million (up 22.4%), and record Apparel Brands sales of $844.8 million (up 4.6%).
In respect to the Peter Alexander brand, its growth was driven by exceptional performance across all product categories and across all channels. The brand delivered a record sales week in the lead-up to Christmas, as well as a record Mother's Day in the second half.
As for Smiggle, management advised that it performed well in all existing proprietary markets (Australia, New Zealand, Europe and Asia). Whereas the international wholesale channel delivered a record sales result with continued strong demand from existing and new partners.
The company's earnings grew at a slightly slower rate due to softer margins. EBIT and net profit after tax both increased 6.4% over the prior corresponding period.
This allowed the Premier board to increase its final dividend by 11% to a record of 60 cents per share, which brought its full-year dividend to $1.30 per share. This is up 4% on last year's dividend and is yet another record for the company.
Management commentary
Premier's chair, Solomon Lew, was pleased with the 12 months. He said:
Premier has once again delivered for shareholders. Premier Retail delivered record results for the year. The operating results and continued strength of our balance sheet have allowed the Directors to approve a record final dividend of 60 cps taking full year dividends to 130 cps, up 4.0%, underscoring our confidence in the strength of the business and its future prospects.
Outlook
Possibly holding back the Premier Investments share price today has been the company's soft start to the new financial year. The company advised:
1H24 commenced against a backdrop of a challenging general discretionary retail environment, as consumers in Premier Retail's global markets face increasing cost of living pressures. In this environment, the Group's global sales for the first 6 weeks of 1H24 (August and into September) are down 2.0% on a record 1H23 and up 18.1% on 'pre-COVID' 1H20. The Group is focused on the key Christmas trading quarter ahead, noting that results for the first half are always driven by this critical period.
