WHS - Warehouse Group

[Hectorplains]

"Strong sales at The Warehouse in a challenging year" ...they left off "with reduced margins and 66% lower profit" from the headline. 

66.6% lower profit, how biblical...

Online sales decreased 34.4%, resulting in online sales making up 6.3% of The Warehouse's total sales.

The Market and T7 neck and neck in loss making.

Outlook - 'soft sales' 'cautious'

[Basil]

$3.2 Billion in sales and they make less than 1% of that in Net Profit.  Beyond pathetic.
Makes you wonder if it ever crossed their mind to put their prices up 2% lol...or better still by 6%, the inflation rate.
Currency will hurt them going forward as will expansion of K Mart.

[LoungeLizard]

The Board really need to step in because it is clear, as it has been for a while, that Nick has lost control of the business. Margins, NP, loss making T7, overblown capex and operating costs. They need to a fresh broom to clear out of all non-essential costs, including the snouts in the trough executive salaries and all of Nick's feel-good pet projects.
Incredible how they have trashed the business in such a short space of time.

[winner (n)]

The Board really need to step in because it is clear, as it has been for a while, that Nick has lost control of the business. Margins, NP, loss making T7, overblown capex and operating costs. They need to a fresh broom to clear out of all non-essential costs, including the snouts in the trough executive salaries and all of Nick's feel-good pet projects.
Incredible how they have trashed the business in such a short space of time.

Should never have taken Nick on in first place

But Joan thinks he's pretty good ...and don't forget the big bonus he gets if he hangs around for a few more years

[Hectorplains]

The saving grace for holders is that they're still paying a dividend, 8% yield on the current share price.

[Basil]

Great the dividend covers this morning's losses but what about the next 364 days lol

Lot of old dead wood in the boardroom and senior management...like a mange infested dog riddled with parasites.

[Hectorplains]

Great the dividend covers this morning's losses but what about the next 364 days lol

Maybe that's when Nick's much touted, "integrated ecosystem" will kick in? 

[entrep]

How's the market getting on?

[Hectorplains]

How's the market getting on?

Negative $22m in operating profit BUT customer numbers now at 1.3m, so all is well     

[Basil]

Just double both those numbers above and problem solved eh 😉

https://www.stuff.co.nz/business/133024778/sanitarium-drops-weetbix-from-the-warehouse-blaming-supply-issues   Hmmm

Analysts not impressed and very dubious of their ability to improve going forward.  WOW Torpedo 7 also made a loss of $22m.  Paywalled
https://www.nzherald.co.nz/business/warehouse-group-woes-worst-performing-retail-brand-revealed-how-it-will-recover/3YPR7A4R2VE7LEH4MDDHIQP56A/

[Hectorplains]

Just double both those numbers above and problem solved eh 😉

https://www.stuff.co.nz/business/133024778/sanitarium-drops-weetbix-from-the-warehouse-blaming-supply-issues   Hmmm

Analysts not impressed and very dubious of their ability to improve going forward.  WOW Torpedo 7 also made a loss of $22m.  Paywalled
https://www.nzherald.co.nz/business/warehouse-group-woes-worst-performing-retail-brand-revealed-how-it-will-recover/3YPR7A4R2VE7LEH4MDDHIQP56A/

A plan to improve profitability and reduce costs in the business was under way, Grayston explained.
"We've now moved the Torpedo7 business into our agile operating unit within our central office..."   Oh wow, really.  So what's it come out of then, the clumsy and dull unit?  It's just more of Grayston's dribbling.

[Basil]

Jettison the market, Torpedo 7 (total $44m losses), let half the management team go with their egregiously high salaries for such a pathetically performing company, price increases of 2% right across the board on everything and they'd be well on the way to making a satisfactory profit.

[winner (n)]

I see they wrote off the $3.5m 'investment' in Zoom Healthcare

Nick raved about how they were going to put Zoom Pharmacy into the ecosystem to make both great blah blah

Obviously didn't work out as planned ....but if a bugger

[Basil]

8.6 cps earnings.  Put a no growth PE of 7.5 on that and that's 64.5 cps.
Just as well everything is going to come right in FY24 and FY25 eh 

[winner (n)]

Nick took a pay cut this year and only got $3.224m

That's 57 times what the median employee rem was

Some might say the group got more value out of a 'median' employee on $56k than Nick