Hallenstein Glasson has shared the first look at its FY25 results and despite profit, it's tough for New Zealand. Photo / NZME
Hallenstein Glasson has shared the first look at its FY25 results and despite profit, it's tough for New Zealand. Photo / NZME
Hallenstein Glasson Holdings has revealed its results for the first 18 weeks of the FY25 financial year at its annual shareholder meeting, and Australia is doing the heavy lifting.
The business said group turnover is up by 10.1% compared to the same period last year, although it was a weakerperiod than is normal for the time.
Importantly, the first 18 weeks include its recent Black Friday promotions.
Hallenstein Glasson group chairman Warren Bell said the result was largely attributed to strong performance in the Australian market, along with a favourable exchange rate due to the stronger Australian dollar.
However, the New Zealand market continues to face challenges, with ongoing economic conditions and the cost of living crisis affecting consumers here more broadly than across the Ditch.
Hallensteins and Glassons in New Zealand reported profits in their FY24 financial results, but continue to face challenges as revenue slightly fell, particularly for Glassons.
Hallenstein Glasson chief executive Chris Kinraid said further expansion by Hallensteins into the Australian market would require infrastructural investment. Photo / Supplied
Hallenstein Glasson chief executive Chris Kinraid said the retail sector will continue to face challenges, stemming from restrictive interest rates and geopolitical tensions.
“For FY24 we posted record profits and dividends for shareholders, despite the most challenging retail environment in decades,” Kinraid said.
“In my first year with the group, I’ve been incredibly impressed by the retail expertise and deep market understanding of our executive and operational teams.”
He said the business was continuing to monitor and adapt its model as necessary regarding ongoing cost pressures on freight.
However, Kinraid acknowledged that with the crucial four weeks of Christmas trading ahead, its result shouldn’t be taken as indicative of the full season.
“By maintaining a straightforward approach and a responsive culture to customer needs, the group is well positioned to navigate the complexities of the current environment and achieve our growth objectives,” Kindraid added.
The group’s directors declared a final dividend of 26.5 cents per share (partially imputed at 75.6% as against 24 cents per share partially imputed at 75.0% last year), to be paid on December 13.
Together with the interim dividend of 24 cents per share that was paid on April 18, its full-year dividend is 50.5 cents per share.
Hallenstein Glasson Holdings' share price rose by 2.7% to $7.22 per share in early trading.
Shareholders positive
There was a round of applause from shareholders for the board at its annual meeting, showing their approval of its continued positive performance.
But it wasn’t all good news, with the chair of the South Island branch of the New Zealand Shareholders Association, Frank Stewart, intending to stand against the re-election of two of Hallenstein Glasson’s directors on grounds that they’ve been in their roles too long.
Specifically, Warren Bell and director Graeme Popplewell who have been directors on the Hallenstein Glasson board since 1986 and 1985 respectively.
One interesting message to come out of the meeting was regarding Hallensteins' Australian expansion.
While further stores are planned to open in Queensland, where it currently has five, one shareholder raised the question of an expansion into southern Australia.
Kinraid said that while expansion is key, larger considerations have to be taken into account, including potential infrastructure investment to directly service the Australian market.
Currently, the Australian market is still serviced by teams in New Zealand.
When asked how Hallenstein Glasson is able to keep up with fashion trends better than its competitors, Bell credited the group’s speed-to-market as a key differentiator.
He also believed this aspect separates it from larger international players which can’t move as quickly.
Glassons New Zealand fell in revenue over the last financial year, but its Australia arm continues to drive growth for the wider Hallenstein Glassons group, which experienced a 10.1% increase in turnover during the first 18 weeks of FY25. Picture / Chris Gorman
Strong result
Hallenstein Glassons shared its FY24 results back in September, with the group’s total sales increasing by 6.3% to $435.6 million in the year to August 1, up from $409.7m a year earlier.
It reported a net profit after tax of $34.5m, up 7.8%.
Overall gross profit margin increased from 57.3% to 59.4%.
Hallensteins' total sales increased by 1.3% to $107.5m (including Australia), up from $106m in FY23, with a net profit after tax of $5.3m, increasing by 37.4%.
Glassons New Zealand had the toughest result, with its total sales falling 2.1% to $110m.
The New Zealand arm reported a profit after tax of $10.8m, although it was down 1% on the previous year.
Glassons Australia was the strongest performer, with total sales increasing by 14.1% to $218.1m from $191.2m in FY23.
Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.
