By NZHJ December 06, 2017 Industry news

Lodged with the Companies Office in November, Bunnings NZ’s financial year to the end of June 2017 reveals big growth to the top line but, as in previous years, there hasn’t been as much added to the bottom line.

                                        2015              2016               2017

Revenue ($000s)    898,694           1,008,066        1,118,363        +11%  

Gross Profit               274,510           317,731           350,080           +10%  

NPAT                           12,034             27,241             27,945             +0.9%

Bunning NZ’s double digit top line gain is on a par with Mitre 10’s growth this last year, but more than PlaceMakers’.

Compare Bunnings NZ’s $1.1 billion 2017 top line to Mitre 10’s at $1.4 billion (+10% on 2016) and PlaceMakers’ at $1.2 billion (+6%)

Some pundits have expressed a little surprise at the scale of Bunnings’ top line increase and we’d love to know whether it has come from new stores or organic growth or a mix of both.

One clue might lie in the fact that Bunnings ANZ scored strong +7.3% store-on-store growth for the same period.

This year’s NZ numbers also show a big (+16.5%) increase in Selling Expenses, up $30 million to $210,000 with almost half of that is salaries & wages.

At 31.3%, Bunnings NZ’s Gross Margin this year is slightly down but it wasn’t a fat margin to start with.

The same could be said for the bottom line, with $110 million added to turnover but just a $700,000 NPAT.

As for next year, we expect to hear more about e-commerce, especially if Australia’s strategy – to start with special orders first – goes according to plan.

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