MHJ - Michael Hill International

[Waltzing]

well thats ok then winner....

with no lock downs it getting hectic and dont even have time to read notices...

when is optimus prime ready from elon and can our new uni connector language runtime hack its RTOS.....

[Waltzing]

https://www.youtube.com/watch?v=UbiQjJ6s2x0

[Cod]

19 January 2023
Michael Hill International Limited (ASX/NZX: MHJ) is pleased to provide a trading update for the FY23H1 period ended 1 January 2023:
KEY POINTS
• Continued EBIT growth – The Company anticipates FY23H1 Group comparable EBIT of between $52m to $55m (FY22H1: $51.6m).
• Double digit sales growth – For the half, Group sales were up 11.7% on LY, and for a more meaningful reflection of performance, up 14.5% on FY21 (with seven fewer stores).
• Strong margin performance maintained – Despite experiencing higher input costs, and a more promotionally driven retail environment, the Company continued to deliver strong margins in line with prior year.
• Rebasing of digital sales – Following last year's surge in digital sales from closed stores and with a strong consumer return to physical retail, digital sales declined by 9% on LY, however, were still up 30% on FY21H1.
• Strong balance sheet maintained – Having initiated the share buy-back program, declared an uplifted dividend, invested in new growth opportunities and a strengthened inventory position, strong sales and margin performance led to a healthy cash position at the end of the half.
• Successful transition to new Global HQ – The new state of the art building is home to the Company's global leadership team and functions, high tech distribution center and reimagined artisanal jewelry workshop.
• Store portfolio management – Three new stores opened (AU:2, CA:1) and one under-performing store permanently closed in Australia during the half, with a network total of 282 stores across all markets at the end of the half (FY22: 280).

[winner (n)]

Pretty disappointing update

Doesn't bode well for the full year result

They always put as much sparkle into their updates as they put in their jewellery ...need to read between the lines sometimes

[Waltzing]

No cut to the DIV then WInner....

Did not lose the game and still puck went in the net....

it could have been a lot worse...so so.. not bad.... well pretty good really when you consider that NZ is the new wild west and you can get killed on your bike by hoodies in CARS...

dont know what is in the water but dont drink it unfiltered...

reall think shareholders should be invited to BBQ's at the new HQ... champagne... this is the request will be making at the next AGM....

shareholders of consolidated holdings of over 100,000 share only invited...



 

[Waltzing]

MHJ

:Australia: For the half, segment revenue grew by 18.0% on LY and by 8.8% on FY21. There were 148 stores
trading at the end of the half (FY22H1: 150).
New Zealand: For the half, segment revenue grew by 13.8% on LY and by 10.0% on FY21. There were 48 stores
trading at the end of the half (FY22H1: 49).
Canada: For the half, segment revenue grew by 0.5% on LY, and by 25.0% on FY21. There were 86 stores trading
at the end of the half (FY22H1: 86

[Waltzing]

Comments :

"Commenting on the result, Managing Director and CEO of Michael Hill International Limited, Daniel Bracken said:
"I'm particularly proud of these results, given we were comping a record second quarter last year, where we benefited
from pent-up demand and strong economic conditions. This year, while the first quarter results were cycling store
closures, the delivery of 4% growth in Q2 was outstanding, underpinned by yet another strong Christmas execution.
Pleasingly, first half sales were up 12% on last year, and for a more meaningful reflection of FY23 performance, up 14%
on two years ago. The first half sales of $363m represent a new record, up $30m on the previous best half in FY20, even
with 22 fewer stores.
While record sales were a highlight, equally pleasing was our ability to maintain elevated margins despite significant
input cost pressures and increased promotional activity in the market.
Considering Canada had a record first half last year, this year's result still delivered growth, and represents 26% growth
on two years ago.""

[Waltzing]

"SEGMENT BREAKDOWN
Revenue for retail operations for FY23H1:
$m $m % Var to % Var to
Last Year This Year Last Year FY21
(26 weeks) (27 weeks)
Segment figures in local currency
Australia segment AUD

Last Year This Year Last Year FY21
161.5       190.6     18.0%      8.8%
New Zealand segment NZD

Last Year This Year Last Year FY21
67.0            76.3       13.8%    10.0%

Canada segment CAD

Last Year This Year Last Year FY21
91.7            92.2       0.5%   25.0%
Total Sales AUD

Last Year This Year Last Year FY21
325.2         363.3      11.7%    14.5%

Exchange rates used for FY23H1:
New Zealand 1.05 1.09
Canada 0.92 0.89

The above figures are prior to final accounting adjustments, and are unaudited. Revenue/Sales figures stated above include the PCP
revenue recognised during the period and sales through our store and online channels. The PCP income recognition pattern is based
on existing estimates and is subject to ongoing management review and adjusted at half-year/year-end as required.
Comparable EBIT is unaudited, pre-AASB16, pre-IFRIC SaaS-related adjustments, and with normalisations."

[Jay]

I notice "the Beast" has recently been in dry dock for maintenance etc
Perhaps that was some of the expense

[Waltzing]

Yes if you mean the "Millions" some such figure for security and one imagines a potential redesign of stores going forward as ALARM bells were have rung...

Yes shame but really open shops in mall are now from a by gone age ...

Fencing and security systems nation wide might be giving private security companies a wind fall yearf or 2.

[winner (n)]

You buying up big waltz before the share price takes off

Buyback to recommence soon

[Waltzing]

Risk of Higher rates are real..
FED always gets it wrong
 

 Higher RATES coming ....

https://www.cnbc.com/2023/01/19/fed-governor-lael-brainard-sees-high-rates-ahead-even-with-progress-on-inflation.html

[Waltzing]

130 Winner ... would about be the next high.... then its a sell ...

could be very wrong of course but dont see it returning to 150 anytime soon even with the increase sales as costs appear to have halted the profits.

but still if they maintaine profit that pretty good but they might find that increase sales farther they have to cut prices in canada...

dont see them  expanding anywhere..but dont know this space very well

we have read the pro gem buyer  reports sent to us last year from AUS.

[Clearasmud]

130 Winner ... would about be the next high.... then its a sell ...

could be very wrong of course but dont see it returning to 150 anytime soon even with the increase sales as costs appear to have halted the profits.

but still if they maintaine profit that pretty good but they might find that increase sales farther they have to cut prices in canada...

dont see them  expanding anywhere..but dont know this space very well

we have read the pro gem buyer  reports sent to us last year from AUS.


[/quote For me it was a slightly disappointing report.
I was hopeing for two 5c dividends this year.
That's still possible but we need a very good 2nd half.

[Waltzing]

Miracles dont always occur... was expecting negative sale growth NZ -

selling what ever we still hold in 2 private company CSN when or if it hits 130..

they can still keep the DIV as they have plently on the balance sheet to pay out...