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- In its latest half-year results, Scentre Group (SCG) has swung into the red and recorded a slump in revenue
- The retail realtor saw its revenue drop to $1.09 billion come June 30 — a 16 per cent decrease compared to the same time last year
- While the group still managed to bring in over $1 billion in revenue, its profit margins have been heavily impacted
- In Scentre’s 2019 interim report, the company tabled $740 million in profit
- But, just 12 months later, the group posted a $3.66 billion loss
- The wild swing is primarily caused by COVID-19’s grip on the retail market, with many retailers forced to shut up shop for a season due to the pandemic
- Just last week, Scentre locked up 129 stores managed by fashion retailer Mosaic Brands (MOZ) following rent disputes
- Following the results, Scentre has stuck by its decision not to pay an interim dividend for FY20
- Scentre shares are up 4.7 per cent, trading for $2.12 per share
In its latest half-year results, Scentre Group (SCG) has swung into the red and recorded a slump in revenue.
The retail realtor saw its revenue drop to $1.09 billion come June 30 — a 16 per cent decrease compared to the same time last year.
While the group still managed to bring in over $1 billion in revenue, its profit margins have been heavily impacted.
In Scentre’s 2019 interim report, the company tabled $740 million in profit. But, just 12 months later, the group posted a $3.66 billion loss.
Ultimately, following the interim results, shareholders are looking at a 69.54 cent basic loss per stapled security.
The wild swing is primarily caused by COVID-19’s grip on the retail market, with many retailers forced to shut up shop for a season due to the pandemic.
Just last week, Scentre locked up 129 stores managed by fashion retailer Mosaic Brands (MOZ) following rent disputes.
The move is set to impact around 400 workers across Mosaic retailers, including Millers, Rockmans, Noni B, and Rivers.
Speaking to the half-year results, Scentre Group CEO Peter Allen said the location of the company’s Westfield Living Centres was “a fundamental strength.”
“Our centres are in close proximity to the most densely populated urban areas with more than 16 million people living within a 30-minute drive of one of our centres,” Peter commented.
“The underlying fundamentals of the group’s business remain strong and the business is well-positioned to deliver long-term sustainable returns for securityholders through economic cycles,” he concluded.
Following the results, Scentre has stuck by its decision not to pay an interim dividend for FY20.
Scentre shares are up 4.7 per cent, trading for $2.12 per share at 10:34 am AEST.
