Premier Investments Limited, well positioned for future growthTeam Veye | 01 Oct 2020 ASX - PMV
Premier Investments Limited (ASX: PMV)
Premier Investments NPAT OF $137.8 million, up 29.0%
Premier Retail Underlying EBIT OF $187.2 million, up 11.9%
Full Year Dividend OF 70 cps
Premier Investments Limited (ASX: PMV) (“Premier”) on 25 September 2020 reported net profit after tax (NPAT) of $137.8 million for the 52 weeks ended 25 July 2020 up 29.0% on FY19 (FY19: $106.8 million).
(Graphic Source – Company Reports)
Highlights for FY20
- Premier Investments Group NPAT $137.8 million, up 29.0% on FY19
- Premier Retail Underlying EBIT up 11.9% to $187.2 million
- Premier Retail LFL sales up 7.6% (constant currency) with total sales of $1.22 billion down 4.3% on FY19
- Record Peter Alexander sales up 16.3% to $288.2 million
- Record Online sales of $220.4 million, up 48.8% on FY19 (2H20 up 70% on 2H19) and contributed 25.5% of 2H20 total Premier Retail sales
- Premier’s stake in Breville at a market value of $1.0 billion as at 11 September 2020 (Balance sheet value $257.4 million)
- COVID-19 is accelerating the retail industry restructure. Premier Retail is best placed to maximise this customer led change through its highly profitable online channel and flexibility within its property portfolio. The acceleration of online has continued into FY21 with Premier Retail online sales up 92% for the first six weeks.
(Chart source: TradingView)
Premier Retail delivered record underlying earnings before interest and tax (EBIT) of $187.2 million, up 11.9% (FY19: $167.3 million). Premier Retail like for like (“LFL”) sales were up 7.6% (constant currency) for the year with total sales down 4.3% to $1.22 billion (FY19: $1.27 billion). Premier Retail’s underlying EBIT margin for the year was 15.4% (Data Source – Company Reports)
Premier Retail delivers nine consecutive years of underlying EBIT growth. Its FY20 underlying EBIT margin to sales (Pre AASB 16) was up 222 bps on FY19. Premier Retail appears to be best positioned for an accelerating industry restructure. Premier Investments Limited has and continues to maintain a strong balance sheet. The stock is strongly trading above all MAs. It has completed the inverse head &shoulder pattern and can have the potential to continue moving upwards. The Latest "Buy" on “Premier Investments Limited” at the price of $15.48 was given on 21 May 2020. It has already grown by more than 32% in less than four and a half months until now. Veye maintains a "Hold" on “Premier Investments Limited” at the current price of $20.56
Veye Pty Ltd (ABN 58 623 120 865) authorised representative (AR No. 001261006) of Vested Equities Pty Ltd which holds an Australian Financial Services License (AFSL No. 478987). Veye is authorised to share only generic financial views through its website, reports and newsletters without taking into consideration your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure the accuracy of the content and that the information is gathered and processed from reliable resources, it is recommended you seek professional advice from your financial advisor or stockbroker before acting on any of our recommendations. Veye Pty Ltd advises it’s users to pursue investing as a long-term goal. Stocks are subject to real time changes therefore all the information we share represents our views at the date of publishing and we request our readers not to interpret our reports as direct recommendations. Past performance is no indication of potential future performance. The securities and financial products we study and share information on in Veye Reports may have a product disclosure statement or other offer document associated with them. You should obtain a copy of these documents before making any decision about acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Veye Pty Ltd confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report (as mentioned on the website www.veye.com.au).