Myer reports of declining net but still upbeat on new financial year figures
Retail firm Myer Holdings Ltd reported on Thursday that its full-year net profit plunged by almost 40 percent for fiscal 2010 as the after-effects of the global financial crisis wreaked havoc on consumer confidence, further deteriorating the already difficult business environment the company had faced on the past financial year.
The company said that its net profit for the full 53 weeks that ended in July 31 this year declined by 38.2 percent to $67.18 million, coming from the $108.75 million posted in the prior corresponding period, which Myer attributed to costs incurred on its initial public offering during the second half of 2009.
Despite the fall on net profit, Myer said that operating profit picked up by 50.4 percent to $163.53 million from the $108.75 million posted in 2009/10, paving the way for the company's final dividend distribution of 11.5 cents per security, fully franked, and en route to the full-year dividend issue of 22.0 cents.
Myer chief executive Bernie Brookes said that in spite of the challenges that the company encountered, it sill managed to chalk up positive figures, citing that the company's earnings before interest and tax (EBIT) numbers were 14.9 percent beyond last year and 3.9 percent above the prospectus forecast.
Mr Brookes said that following some 50 years of fundamental business transformation, Myer has achieved a more efficient and profitable business platform that contributed to the company's good showing in the past financial year, stressing that "we are proud of the turnaround that we have achieved so far at Myer."
However, Mr Brookes said that the achievements gained so far would not stop Myer from producing the committed growth and returns to its shareholders as he expressed optimism that new and refurbished stores in Melbourne, Top Ryde, Robina, Canberra City, Charlestown and Garden City should deliver considerable sales lift that would be reflected on next year's financial performance report.